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In the HR FAQ episode, the speaker addresses the confusion between an offer letter and an employment agreement, highlighting their key differences. An offer letter is any communication from an employer extending a job offer that, when accepted, leads to the candidate joining the company. It typically includes details about the position, such as title, salary, supervisor, schedule, and expectations. Understanding the distinction is crucial, as using these terms interchangeably can lead to unintended legal consequences. The episode aims to clarify these terms and provide guidance for HR professionals to protect employers from potential misunderstandings.