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In this episode of HR FAQ, we explore the difference between an offer letter and an employment agreement, a distinction that can be confusing yet crucial for employers. An offer letter is any communication from an employer to a candidate extending a job offer. It may include essential details like job title, salary, supervisor, schedule, and expectations, providing candidates clarity about the position. Understanding this difference is vital for HR to protect the employer from legal misunderstandings and unintended consequences. The discussion emphasizes the importance of correctly using these terms in the recruitment process.