Employment Models Dilemma: Should I Choose Retainership or Stay as an Employee?

Understanding Employment Models: Retainership vs. Employee

I am a doctor specializing in cardiology. I have been offered a job on a retainership model in a newly built hospital. Currently, I am a government employee. Can you guide me on the difference between these two models, namely, retainership and employee? Kindly let me know whether one should work on a retainership model or if the employee status is better.

Regards

Dear Dr. Harpal Gulati, Consultants, when they provide very specialized and specific services, are retained on a retainer basis. In fact, there is no such word as "retainership." However, its loose meaning is retaining a consultant for providing consulting services.

Consultants come to the business premises and provide their services on a specific day/date or as and when required. The agreement varies depending on the type of services they provide. This is in contrast with employees. When an employer hires the services of employees, hours of work, type of work, remuneration, and performance are well decided. Their relationship falls within the purview of labor laws.

If you work as a consultant, then your services will not come under labor laws. All that the company will do is deduct TDS under the provisions of section 194J of the IT Act while paying your charges. However, you have mentioned that you have been offered a "job." I doubt whether any government employee is permitted to have dual employment. Therefore, it is better to work as a consultant rather than as an employee.

I recommend that you keep your government authorities informed about your consulting services. There should not be a problem of any kind because of the "suppression of material facts" or "conflict of interest."

Regards, Dinesh V Divekar

"Beware of false knowledge; it is more dangerous than ignorance."