Every law firm needs to establish its practices in line with its vision and services. Labor relations between lawyers and clients must be based on strict principles. These should be reflected in the terms and conditions of the law firm retainer agreement or contract. This document should fully describe to clients the relationship they establish with the attorney (and firm) representing them. There are a number of main points that should be included in this agreement.

It is important that the identity of the attorney and client be established first. This is worth noting, as some companies tend to enter into agreements on behalf of the legal person. This is also a viable option, provided that the responsibilities of each partner and employee and joint and several liability are specifically established.

The services provided by the attorney and his team must be fully described in sufficient detail. This first section clarifies why the retainer fee will be charged. The obligations of each party should be set forth in the following sections. It is important that the client understands what he has to do to take full advantage of the service that the law firm offers. In many cases, the timeline of the work to be performed by the attorney must also be included. This is an important provision for establishing the withholding payment structure.

Specific attention should be paid to the actual retainer fee section. The fees charged by the attorney and each of his associates must be clearly stated in monetary terms. Generally, the methods by which retainer fees are determined should be set forth in a separate agreement, usually the law firm’s partnership agreement.

It is common practice that withholding rates are subject to change. Any modification that the rates may have must be explained. The retainer agreement should say under what circumstances these become valid. The size of the changes must also be indicated.

The law firm retainer agreement should have a section that clearly explains what these fees are and how they are charged. The document must indicate that the sum is transferred to the company account in the name of the client. There should be an explanation of the circumstances of the fee withdrawal and the expected timing. The agreement must contemplate a possible termination of the service and how this will affect the payment of the advance and the withdrawal.

There has to be a separate clause regarding the expenses involved in providing the service provided by the lawyer and his associates. These may include travel expenses and research costs. It must be clearly stated when and how they are paid.

You may decide to draft a law firm retainer agreement on your own. Still, it’s a good idea to consider using a template drawn by professionals who specialize in this. Once you have the form, you can customize it based on your company’s practices and fee collection policies. This option gives you more security and provides smoother operation.