A retainer agreement sets a recurring fee a client pays a service provider, often a professional or independent contractor, in exchange for guaranteed availability or a defined scope of ongoing work, rather than billing for each piece of work separately.
What it means
The fee is typically payable regardless of exactly how much work is done in a given period, within agreed limits, which gives the provider predictable income and the client priority access to their time.
Where it fits in
It's a commercial contract distinct from an employment contract - the provider remains an independent contractor rather than an employee, even though the payment is recurring like a salary.
Key rules
- A recurring fee for guaranteed availability or ongoing scope, not per-job billing.
- Common with professional service providers and independent contractors.
- Doesn't itself create an employment relationship.
- Usually defines a scope of included work, with excess work billed separately.
