What is meant by "Employment on retainer ship basis". How is it different from contract employment?

Hi,

I needed to understand what is meant by "Employment on retainer ship basis". How is it different from contract employment?

Regards,
Sujeesha.

"Employment on retainership basis" means obtaining services from a professional by paying a retainership fee. They are different from regular employees as they are not on the payroll of the company. They are given a fixed monthly fee. They are also not covered under the PF Act.

Hi,

A "retainer" is basically a person who is available to you for advice. He is not required to put in daily attendance or observe any fixed working hours. He charges a retainership fee for his services. In case he is required to come and put in attendance or appear on your behalf before any authority/court, etc., he charges you separately for such services. This, however, depends upon the terms of his/her engagement as a "Retainer."

In my previous employments, I had engaged retainers as advocates/income tax advisors. In case of employment on contractual terms, the incumbent is required to physically put in attendance as per the terms of the contract. The basic difference, in my opinion, is that while in the case of retainership, the availability of a person for advice is ensured, in the latter case, his physical presence for discharging the duties is necessary. We can hear views of others.

Cyril

In my previous company, I was receiving a retainer fee as my salary. However, the company treated me as a regular employee for up to 10 months. I was a fresher at that time, and the retainer fee was not determined by me but by the company. I was not allowed to take any leave and was told that I was on a probationary period. The offer letter also stated that I was on a retainer basis. Everything mentioned here was completely opposite to my actual experience.

Retainership contract is one in which the employees are hired on a retainership contract, wherein statutory compliances of employment like PF, ESIC, Bonus, Gratuity, etc., are not applicable to the individuals. The working hours, monthly charges, and other benefits (if required) can be given depending upon mutual understanding and the contract letter between the company and the individual. There will be no master and servant relationship in such a contract.

In the contractual letter, the contractual period is mentioned along with other terms and conditions of appointment. If a contractual relationship is established between a contractor and the firm, then it becomes the responsibility of the employer to ensure that whichever workmen come to his firm, their PF, ESIC, and other benefits are provided to them; otherwise, it becomes the liability of the firm to bear the cost.

Regards

Hello,

Firstly, you cannot terminate an employee due to a lack of work in a company. However, if you really want to close a certain department due to a lack of work, then you have to inform the labor commissioner about the same. You should state that due to a lack of work, you are retrenching a specific number of employees, and in doing so, you have to pay them retrenchment compensation (calculated similarly to gratuity) and all the legal dues.

Hello,

Please let me know if there can be a fixed period on a retainership basis for work. Can the organization terminate the work without any compensation or commission as agreed upon when entering into such an agreement? Please forward me a copy of the retainership agreement.

Thanks

Dear Sir, please suggest and guide us on how to prepare an Employment Retainership Contract Agreement. Which terms and conditions are mandatory? We have staff and workers above 60 years of age that we are looking to retain.