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In this video tutorial, the speaker discusses the difference between an offer letter and an employment agreement, highlighting the common confusion between the two terms. An offer letter is any communication from an employer extending a job offer to a candidate, detailing aspects such as job title, salary, supervisor, schedule, and expectations. This letter provides essential information about the role and helps the candidate understand the position more clearly. The tutorial aims to clarify these concepts and suggests how HR can protect employers from the unintended legal consequences that may arise from the misuse of these terms.