Could anyone explain the concept of retainer to me? How is it different than employee? How are they taxed? Is there any significant detail I should be knowing?

I will be joining as an associate in 2 months and would like to know more.

Your answers are appreciated, bumps are not.

Thank you.

Some tax benefits. You can earn back most of what you pay as TSD when you file for taxes. Plus, allows you to keep your Bar Council enrolment active. You can't be a licensed Advocate if you are an employee on the payroll. Lastly, as someone else mentioned, here you are being retained and hired for your services (retainer being a contract for services; the contract and firm policies determining your rights), unlike an employer-employee relation (which is a contract of service; the labour law statutes and company policies governing your rights).

Bank statement is enough for taxation purposes. The firms usually share a GST form filing at the end of FY which you would need for tax filing. But you definitely need a retainer contract with the firm. Because the retainer contract is what governs your rights - say, probation, notice period, fees, bonus, intellectual property rights. Please do get that done. Without that you will have to go the extra length if you ever needed to prove you were working for them. Another advice is to always get a relieving certificate, properly signed and stamped by the partner concerned of the firm, when you leave. Most established firms send that in by post a few days after your last day. If you ever change jobs, the next firm/place will always ask for the relieving letter copy. And you might also need the retainer agreement/bank statements as proof of your fees/compensation + variable.

Based on how your employer carries out legal compliances after hiring you and/or at the time of making your payments. For eg how your employer deducts TDS before clearing your salary/fees would be one way to show that you are on retainer. Another eg would be to check if your employer is providing you social security benefits (like EPF contribution), absence of which would show that you are not an employee.