Dear All I have require retainership letter sample for finance person. Hope you help me.
From India, Ahmadabad
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28From India, Ahmadabad
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Dear Mukesh,
It is common for companies to hire external consultants. Since the consultants provide the services, the correct business practice is to issue the Purchase Order (PO) or Work Order (WO) to them. Please do not be under misconception that PO is issued only to the suppliers to buy the material or to the vendors who provide services.
While issuing the PO or the WO, please mention clearly:
a) What kind of services will be provided, and who will provide them, and where will they be provided?
b) What will the duration of the service be (i.e., till the end of the current financial year)?
c) Is quantification of the services possible? If yes, then specify the quantum.
d) How will the quality of the services be measured? Will there be penalties for failing to meet the quality?
e) What will be considered as the deficiency of the services? Will there be penalties for deficiency?
f) What will be the remuneration for providing the services, and what will be the frequency of payment? What will be the credit terms?
Please note that many times, companies get carried away because of the aura the person carries or the personality of the person. However, when he/she falls short of the expectations, due to a lack of the proper PO, it creates bad blood between the two parties. Therefore, while hiring the services, companies need to exercise utmost caution.
Thanks,
Dinesh Divekar
From India, Bangalore
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It is common for companies to hire external consultants. Since the consultants provide the services, the correct business practice is to issue the Purchase Order (PO) or Work Order (WO) to them. Please do not be under misconception that PO is issued only to the suppliers to buy the material or to the vendors who provide services.
While issuing the PO or the WO, please mention clearly:
a) What kind of services will be provided, and who will provide them, and where will they be provided?
b) What will the duration of the service be (i.e., till the end of the current financial year)?
c) Is quantification of the services possible? If yes, then specify the quantum.
d) How will the quality of the services be measured? Will there be penalties for failing to meet the quality?
e) What will be considered as the deficiency of the services? Will there be penalties for deficiency?
f) What will be the remuneration for providing the services, and what will be the frequency of payment? What will be the credit terms?
Please note that many times, companies get carried away because of the aura the person carries or the personality of the person. However, when he/she falls short of the expectations, due to a lack of the proper PO, it creates bad blood between the two parties. Therefore, while hiring the services, companies need to exercise utmost caution.
Thanks,
Dinesh Divekar
From India, Bangalore
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Dear Mukesh,
Here are some guidelines to understand. Do not try to make a lengthier contract or agreement. The PO(To formally request the purchase of goods or services from an external vendor)/Agreement/Contract/WO should be very specific instead of a complicated one with a myriad of clauses and conditions. The fidelity should be a condition for the retainer.
You need to understand the requirement of a retainer, either on a daily visit basis, on a particular day, or working from home or online.
In the engagement of retainers, they are hired under an agreement for a definite period. A retainer agreement involves payment either monthly, intermittently, or on a piece-rate basis, as agreed. The payment is generally made upon certification by the user department.
The agreement should outline the working conditions, the validation period of working, and the renewal period.
Regarding the termination of Retainers:
Termination can occur by either party with time-bound notices on the violation of conditions. The client is not bound to pay if the service received is not up to par as required. The client needs to pay if they want to break the contract without violation.
The client needs to outline the taxes involved in the Retainer's payment.
From India, Mumbai
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Here are some guidelines to understand. Do not try to make a lengthier contract or agreement. The PO(To formally request the purchase of goods or services from an external vendor)/Agreement/Contract/WO should be very specific instead of a complicated one with a myriad of clauses and conditions. The fidelity should be a condition for the retainer.
You need to understand the requirement of a retainer, either on a daily visit basis, on a particular day, or working from home or online.
In the engagement of retainers, they are hired under an agreement for a definite period. A retainer agreement involves payment either monthly, intermittently, or on a piece-rate basis, as agreed. The payment is generally made upon certification by the user department.
The agreement should outline the working conditions, the validation period of working, and the renewal period.
Regarding the termination of Retainers:
Termination can occur by either party with time-bound notices on the violation of conditions. The client is not bound to pay if the service received is not up to par as required. The client needs to pay if they want to break the contract without violation.
The client needs to outline the taxes involved in the Retainer's payment.
From India, Mumbai
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(Fact Checked)-Great advice! Just to add, the retainer agreement should also include a clause on confidentiality and non-disclosure. Keep contributing! (1 Acknowledge point)
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You've provided a comprehensive reply to the user's query about a retainership letter tailored for a finance professional. To build on your response, I would suggest the following additions:
1. Clarity on Specific Services: It's crucial to be very clear about the specific services the finance professional is being retained for. These should be listed in detail in the agreement, and it could include tasks like financial forecasting, budget planning, auditing, etc.
2. Confidentiality Clause: Given the sensitive nature of financial data, a confidentiality clause is usually standard in such agreements. This clause should specify that the retained professional would not disclose any confidential information obtained during the course of their work.
3. Dispute Resolution: It's also a good idea to include a clause specifying how any potential disputes would be resolved. This could be through mediation, arbitration, or through the courts.
4. Indemnity Clause: This clause protects both parties from any loss or damage caused by the other party's breach of contract. It's a common feature in retainership agreements.
5. Governing Law: Finally, specify the laws of which country/state would govern the agreement. Since the location is Ahmadabad, India, it would be the laws of India.
For a more detailed understanding, you can visit https://www.indiafilings.com/docs/re...ship-agreement, which provides a sample retainership agreement. This can give you a better idea on how to draft a retainership letter tailored for a finance professional. Please note that the actual letter should be drafted with the help of a legal professional to ensure all legal requirements are met.
In terms of payment, as you mentioned, it can be monthly, intermittently, or on a piece-rate basis. The payment method should be clearly outlined in the agreement, including when it will be paid (e.g., end of the month), and how it will be paid (e.g., bank transfer).
Remember, the tax implications are important to outline. In India, GST will be applicable on the services provided by the finance professional who is being retained. The rate of GST can vary, so it's important to check the latest rates when drafting the agreement.
It's beneficial to be aware of all legal aspects while drafting such letters. Understanding the Indian Contract Act, 1872, and the Indian Stamp Act, 1899 can be helpful.
From India, Gurugram
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1. Clarity on Specific Services: It's crucial to be very clear about the specific services the finance professional is being retained for. These should be listed in detail in the agreement, and it could include tasks like financial forecasting, budget planning, auditing, etc.
2. Confidentiality Clause: Given the sensitive nature of financial data, a confidentiality clause is usually standard in such agreements. This clause should specify that the retained professional would not disclose any confidential information obtained during the course of their work.
3. Dispute Resolution: It's also a good idea to include a clause specifying how any potential disputes would be resolved. This could be through mediation, arbitration, or through the courts.
4. Indemnity Clause: This clause protects both parties from any loss or damage caused by the other party's breach of contract. It's a common feature in retainership agreements.
5. Governing Law: Finally, specify the laws of which country/state would govern the agreement. Since the location is Ahmadabad, India, it would be the laws of India.
For a more detailed understanding, you can visit https://www.indiafilings.com/docs/re...ship-agreement, which provides a sample retainership agreement. This can give you a better idea on how to draft a retainership letter tailored for a finance professional. Please note that the actual letter should be drafted with the help of a legal professional to ensure all legal requirements are met.
In terms of payment, as you mentioned, it can be monthly, intermittently, or on a piece-rate basis. The payment method should be clearly outlined in the agreement, including when it will be paid (e.g., end of the month), and how it will be paid (e.g., bank transfer).
Remember, the tax implications are important to outline. In India, GST will be applicable on the services provided by the finance professional who is being retained. The rate of GST can vary, so it's important to check the latest rates when drafting the agreement.
It's beneficial to be aware of all legal aspects while drafting such letters. Understanding the Indian Contract Act, 1872, and the Indian Stamp Act, 1899 can be helpful.
From India, Gurugram
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Sample Internship Offer Letter.doc
CiteHR.AI
(Fact Checked)-Your advice on issuing a Purchase Order (PO) or Work Order (WO) for hiring external consultants is accurate and detailed. Great job! (1 Acknowledge point)