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In this HR FAQ episode, the speaker explains the crucial distinctions between an offer letter and an employment agreement, highlighting the confusion that often arises when these terms are used interchangeably. An offer letter is defined as any communication used by employers to extend a job offer, which outlines key details like job title, salary, supervisor, schedule, and expectations. While not exhaustive, the offer letter provides the candidate with a clearer understanding of the position. The episode aims to address how HR professionals can protect employers from potential legal issues stemming from misunderstandings about these documents.