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In this HR FAQ episode, the difference between an offer letter and an employment agreement is explained, highlighting common misconceptions. While many use the terms interchangeably, they serve distinct purposes. An offer letter is a communication from employers to extend a job offer, providing crucial details like job title, salary, supervisor, schedule, and expectations. This document helps candidates understand the position better. Misunderstanding these terms can lead to legal implications, making it essential for HR to distinguish between them and protect employers from potential consequences related to these documents.