Dear friends,
Adverting to my earlier post, various allowances, perks, concessions, payments, incentives etc being practiced by different firms. When saying so, I only mean to opine they have no statutory status as mandatory/compulsory. But there is no bar in paying their employees in whatsoever names they would be assigning. However in doing so, an employer should be aware implications as per the respective Definitions "Salary/wages", 'perks' etc as indicated in the Acts/laws which would have a bearing in determining quantum of contributions/payments for 'EPF, ESI, Bonus, Gratuity, F&F settlement, IT/PT, Pension etc at appropriate time. Sometimes may expose to litigations and resultant fines/penalty impose by the authorities when these unconventional benefits to employees are not reckoned for some purposes appropriately. So far as I know payments to regular employees only with the purpose of retaining with them are not considered as 'Retainer fees' though they are retained with additional payments, either in the form of lumpsum/addl.increments/promoting to next scale-grade etc.
Re:'Retention Fees'/Retainers' fees etc., this term is generally used for 'retaining' knowledgeable/dedicated/resourceful employees are when separated especially on superannuation etc. When the firms' HR policy has no provision to approve extension of their services beyond the retiring age, they are retained normally as 'Consultants' or 'Retainers'. Remuneration for them, either fixed sum or with periodical enhancements are common. Highly influential employees who are resourceful for firms business promotions. Similarly employees exiting from other firms in same sector, govt.officials, politically influential, kith & kin of senior officials and so on could be bracketed under this category.