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when recruiting have you ever found yourself using offer letter and employment agreement interchangeably i know i have but theres a big difference between the two terms one that could be confusing at best and legally blinding at worse so whats the difference and how can hr protect the employer from such unintended consequences in this episode of hr faq well answer those questions but first lets clarify what we mean by offer letter and employment contract what is an offer letter an offer letter can refer to any communication that employers use to extend a job offer to a candidate if the candidate accepts they will join the company and begin onboarding offer letters may include a number of different details about a given position such as title salary supervisor schedule and expectations of course this isnt an exhaustive list but the main takeaway should be that an offer letter gives a job candidate a much better understanding of the position theyve been offered than what they might