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In this tutorial, the distinction between an offer letter and an employment agreement is clarified. While these terms are often used interchangeably, they have significant differences that can lead to confusion or legal issues. An offer letter is any communication from an employer that extends a job offer to a candidate, detailing aspects like job title, salary, supervisor, schedule, and expectations. Its primary purpose is to provide candidates with a clear understanding of the position being offered. The video aims to explain these differences and discuss how HR can protect employers from potential unintended consequences that arise from misusing these terms.