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In this video tutorial, the distinction between an offer letter and an employment agreement is clarified. An offer letter is a communication used by employers to extend a job offer, detailing aspects like title, salary, supervisor, schedule, and expectations. It provides candidates with a clearer understanding of the offered position. The video emphasizes that while these terms are often used interchangeably, misunderstanding their differences can lead to legal issues. The discussion aims to help HR professionals protect employers from potential unintended consequences during the recruitment process.