If you are an employer or employee and would like additional advice on withdrawing an employment contract, please contact Shiv Raja at firstname.lastname@example.org. The fundamental difference between letters of offer and employment contracts? The letter of offer is an unofficial way to present a candidate with a job without legal obligations. An employment contract is a binding agreement that both the employer and the worker must conclude. Not sure which document to send to your new employees? Watch this blog! An employment contract can also be used as an arbitrator in the event of a dispute between an employee and an employer. All each party must do is refer to the specific language of the employment contract and act according to that language to settle the dispute. . . .