Dear Friend,
When you hire a person as a retainer and pay him a monthly retainership fee, you are not employing him on a regular basis. He is being paid a fee so that you have the right to ask him to do a job (jobs as per the agreement with him) as and when the requirement arises. Normally, a retainership agreement has two types of payments - one retainership fee and the other visitation charges on a daily, weekly, or monthly basis.
As for the issue of 240 days of service, it is an altogether different proposition. If you employ a person on regular wages directly, and he completes 240 days of service, then he would be deemed to have completed one year of regular service. In such a situation, the provisions of the ID Act 1947 for retrenchment will be attracted when you want to discontinue his employment.
I am a retainer for three firms presently. I receive a monthly retainership fee and visitation charges on a daily basis when the firms call me to do work for them.
P. K. Misra
From Korea, Samsung
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1When you hire a person as a retainer and pay him a monthly retainership fee, you are not employing him on a regular basis. He is being paid a fee so that you have the right to ask him to do a job (jobs as per the agreement with him) as and when the requirement arises. Normally, a retainership agreement has two types of payments - one retainership fee and the other visitation charges on a daily, weekly, or monthly basis.
As for the issue of 240 days of service, it is an altogether different proposition. If you employ a person on regular wages directly, and he completes 240 days of service, then he would be deemed to have completed one year of regular service. In such a situation, the provisions of the ID Act 1947 for retrenchment will be attracted when you want to discontinue his employment.
I am a retainer for three firms presently. I receive a monthly retainership fee and visitation charges on a daily basis when the firms call me to do work for them.
P. K. Misra
From Korea, Samsung
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Hi,
Please could you forward me a contract letter for retainership. I want to add the following points to the letter: the person will be on a call basis, required for discussions with existing and potential clients, and might have to travel anywhere in India.
Please forward the same to [https://www.citehr.com/misc.php?do=email_dev&email=bmFpbmEubGl0dGxlZ2 lybEBnbWFpbC5jb20=](https://www.citehr.com/misc.php?do=email_dev&email=bmFpbmEubGl0dGxlZ2 lybEBnbWFpbC5jb20=).
Thanks,
Shweta
From India, New Delhi
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Please could you forward me a contract letter for retainership. I want to add the following points to the letter: the person will be on a call basis, required for discussions with existing and potential clients, and might have to travel anywhere in India.
Please forward the same to [https://www.citehr.com/misc.php?do=email_dev&email=bmFpbmEubGl0dGxlZ2 lybEBnbWFpbC5jb20=](https://www.citehr.com/misc.php?do=email_dev&email=bmFpbmEubGl0dGxlZ2 lybEBnbWFpbC5jb20=).
Thanks,
Shweta
From India, New Delhi
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Dear All,
My question is this: if an employee crosses 58 years of age and our appointment letter states retirement, can we still use a retainership agreement to retain the services of a senior employee? Is this legally right or wrong?
Regards,
Hari Nagvanshi
From India, Delhi
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My question is this: if an employee crosses 58 years of age and our appointment letter states retirement, can we still use a retainership agreement to retain the services of a senior employee? Is this legally right or wrong?
Regards,
Hari Nagvanshi
From India, Delhi
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Hi Hari,
Taking the services of some persons on a retainer agreement is legally right. Even in some cases, government establishments are also practicing this. Some specially talented and experienced individuals are considered as golden-egg laying hens, hence they are employed even into their 70s. Sometimes, in private organizations, at the discretion of top managers or directors, some people are employed on humanitarian grounds after the age of 58.
Regards
From India, Hyderabad
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Taking the services of some persons on a retainer agreement is legally right. Even in some cases, government establishments are also practicing this. Some specially talented and experienced individuals are considered as golden-egg laying hens, hence they are employed even into their 70s. Sometimes, in private organizations, at the discretion of top managers or directors, some people are employed on humanitarian grounds after the age of 58.
Regards
From India, Hyderabad
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Dear,
Is it correct legally or from an HR perspective to sign an employment on a retainership basis without any retainership agreement or any retainership fees, only a commission that is not distinctly defined (as it may vary from project to project based on project cost)? Can this type of job be entered by signing just a two-page letter mainly containing NDA terms?
Moreover, can such a job be defined for a limited period? What if the commissions are not paid as mentioned in the letter (percentage not distinctly defined), giving some false/unjustified reasons after availing services (which may include critical initiation/introduction leading to the finalization of any deal)?
Appreciate your advice at the earliest.
Thanks,
Partha
From India, New Delhi
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Is it correct legally or from an HR perspective to sign an employment on a retainership basis without any retainership agreement or any retainership fees, only a commission that is not distinctly defined (as it may vary from project to project based on project cost)? Can this type of job be entered by signing just a two-page letter mainly containing NDA terms?
Moreover, can such a job be defined for a limited period? What if the commissions are not paid as mentioned in the letter (percentage not distinctly defined), giving some false/unjustified reasons after availing services (which may include critical initiation/introduction leading to the finalization of any deal)?
Appreciate your advice at the earliest.
Thanks,
Partha
From India, New Delhi
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Kami Export - Negative Covenant in Contract of Employment.pdf (1).pdf