Curious About Hiring Retainers? Let's Discuss Benefits, Legalities, and More

Queries Regarding Retainers

I have the following queries regarding retainers:

1. What are the benefits a company enjoys if they hire retainers/professionals?
2. What are the statutory benefits that need to be given to retainers?
3. Do we need to have a license to hire retainers?
4. Are labor laws applicable to them?
5. Is TDS deduction mandatory if the professional fee does not fall under the tax slab?
6. Are they eligible for gratuity/annual increment in professional fee/do they need to serve a notice period while resigning?
7. Can we take a security amount (for a fixed period) from them while hiring them?

Any additional relevant information apart from the above will be highly appreciated.

Regards

Regarding retainers for a further period of their services after completion of their regular service as per the agreement, there won't be any other benefits if not specified with mutual consent. TDS is applicable to all transactions. Some insurance companies allow employees aged 60 and above. Acceptance of a security deposit depends on the company's policy. Providing other perks depends on the nature of services offered by the company.

Thank you.

In my opinion, it all depends upon the nature of the job on which a person is being engaged, whether as a retainer or a consultant, as well as the period for which such a person is engaged. Furthermore, a significant factor is the age of the person being engaged and whether they are operating within a legal firm or as a single-handed professional.

Security Considerations

Regarding the issue of security from him, it hinges on the type of work to be handled by him, particularly if it involves financial transactions, etc.

Regards,
AK Chandok
RPFC (Retd.)
www.akchandok.com