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Free letter template · Word

Retainer Appointment Letter

A retainer appointment letter engages a professional on a fixed monthly fee in return for an agreed amount of availability, such as a set number of days or hours each month. It is common for legal counsel, recruiters, IT support and doctors at factories or offices.

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Preview of the letter

[Highlighted] = fill in
[Company Logo][Company Name]

RETAINER APPOINTMENT LETTER

Ref. No.:
[Reference Number]
Date:
[Date]

To,
[Retainer Name]
[Professional Qualification / Registration No.]
[Retainer Address]

Subject: Engagement on Monthly Retainer – [Service Area]

Dear [Retainer Name],

We are pleased to engage you on a monthly retainer basis to provide [Service Area] services to [Company Name], effective [Start Date].

  1. Retainer fee: ₹[Amount] per month, plus GST if applicable, payable by the [Pay Day] of the following month against your invoice. TDS will be deducted as applicable.
  2. Availability: You will be available for [Committed Days/Hours] per month at [Work Location] or remotely, and reachable on working days for urgent matters.
  3. Additional work: Work beyond the committed availability will be billed at ₹[Amount] per [hour/day], only when approved in advance by [Coordinator Name].
  4. Unused time: Unused retainer time will lapse at the end of each month.
  5. Independent professional: You remain an independent professional. This engagement does not create employment and no salary, PF, ESI, leave or gratuity applies.
  6. Professional standards: You will maintain valid registrations and follow the professional and ethical standards of your field.
  7. Confidentiality: All company information shared with you will be kept confidential.
  8. Review and termination: The retainer will be reviewed every [Review Period]. Either side may end it with [Notice Days] days' written notice.

Kindly sign a copy of this letter to confirm your acceptance.

Yours sincerely,

For [Company Name]
[Authorised Signatory]
[Designation]
Accepted
[Retainer Name]
Signature: ____________
Date: [Date]

What this template includes

  • Fixed monthly retainer fee
  • Committed availability in days or hours
  • Rate for work beyond the retainer
  • Invoicing, GST and TDS
  • Non-employment clause
  • Quarterly review and termination notice

When to use it

  • Engaging an advocate or company secretary on monthly retainer
  • Factory medical officer or visiting doctor arrangements
  • Recruitment or IT support on a monthly availability basis
  • Retired executives retained as mentors

How to customise this template

  1. 1Specify committed visits, days or hours per month
  2. 2Set an overage rate
  3. 3Add the reporting contact and escalation path
  4. 4State whether unused hours lapse or carry forward

HR tips

  • Track hours or visits to judge value
  • Do not add retainers to payroll
  • Review the retainer every quarter
  • Ensure professional registrations, such as medical or bar council, are current

This template is a starting point only and is meant for independent professionals. Review it against applicable labour laws (including the Labour Codes in force from 21 November 2025 and the state rules being notified), your Shops & Establishments registration, standing orders and company policies, and take advice from a legal adviser where needed.

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Frequently asked questions

What is the difference between a retainer and a consultant letter?+

A retainer pays a fixed fee for ongoing availability each month, while a consultant letter is often tied to specific deliverables or a project.

Do unused retainer hours carry forward?+

Only if the letter says so. Most retainers state that unused hours lapse at month end.

Is a retainer an employee for PF purposes?+

A genuine independent retainer is not an employee. If the person works fixed hours under your control, the relationship may be seen as employment.