01
Why the agreement should be in writing
The Code ties the freely agreed fee to a written agreement. Without one, the fee is no longer what the parties had in mind: it is worked out under the Code's own rules, on the value of the claim, the Annex I fees or hourly work (art. 58 par. 3, art. 59 par. 3).
Two further provisions show why the wording matters. When a case is settled, in or out of court, the agreed or statutory fee is still owed; this does not apply where the lawyer is under a salaried mandate or is paid a fixed periodic fee, unless the contrary has been agreed in writing (art. 71). And when a client withdraws an instruction for which a written fee agreement exists, the Code distinguishes: if the withdrawal is unjustified, the client must perform all its obligations under the agreement at once; if it is justified, the client pays the lawyer's expenses and the fee for the work done up to that point (art. 77). A retainer agreement should therefore state its term and how either side may end it.
02
What the agreement settles: included work and separate charges
Because the content of a retainer comes from the contract and not from the statute, these points should be dealt with expressly:
- Scope: which work is included in the monthly fee, for example advice on day-to-day operations, reviewing and drafting contracts, corporate formalities, and up to what limit.
- Court cases: whether litigation is included or is paid separately, and on what basis. The Code lets the parties agree the fee freely for a whole case, part of one or any other legal work (art. 58 pars 1 and 2).
- Settlements: whether a separate fee is due when a dispute is settled. The rule that the agreed fee is still owed on settlement does not apply to a lawyer paid a fixed periodic fee, unless the contrary is agreed in writing (art. 71).
- Expenses: court costs and other expenses paid to carry out the instruction are owed on top of the fee (art. 57 par. 1). The agreement says how they are approved and charged.
- Who is covered: the company only, or also affiliated companies and the directors personally. For a lawyer under a salaried mandate, the Code states that the mandate creates no duty to represent the client's directors and employees as individuals, and no duty to serve other persons, even companies of the same group, unless the contract expressly provides for it (art. 42 par. 3). Any retainer needs the same clarity.
- Work outside the scope: how it is agreed, in writing and before it starts.
- Term, review of scope and fee, and termination.
03
Retainer or fee per matter
With a fee per matter, each instruction has its own agreement: a fixed amount for the case or the piece of work (art. 58 pars 1 and 2), a fee by the hour, in which case the lawyer must tell the client the hourly rate (art. 59 pars 1 and 2), or, by written agreement, a fee that depends on the outcome (art. 60 par. 1). If nothing is agreed in writing, the Code's own rules apply.
With a retainer, the scope and the fee are agreed once, in advance, for a period of time. The two can be combined: because the parties agree the fee freely for a whole case, part of one or any other legal work (art. 58 pars 1 and 2), the agreement can provide that work outside the agreed scope is charged per matter.
A fee per matter suits a company with occasional, self-contained legal matters. A retainer suits a company whose legal questions arise continuously, so that a predictable monthly cost and a lawyer who already knows the company matter more than the price of any single matter.
04
Retainer or salaried mandate (έμμισθη εντολή)
The Code deals separately with the lawyer under a salaried mandate (έμμισθη εντολή) (arts 42 to 46). Article 42 par. 1 of the Code defines this lawyer by three elements: the lawyer provides exclusively legal services, as legal adviser or as lawyer, to a specific client; does so on a steady and permanent basis; and is paid exclusively by a fixed periodic fee. Where these are present, articles 43 to 46 apply, with consequences that a company should know before it signs:
- In the private sector the lawyer is engaged by a written contract (art. 43 par. 1).
- The fixed monthly pay is freely agreed, but may not be lower than the statutory minimum pay of a private-sector employee with comparable academic qualifications (art. 44 par. 1).
- The contract is always of indefinite duration. It ends only on death, on the dissolution of the legal entity that engages the lawyer, on the client's bankruptcy, or by termination; termination must be in writing, state the reason and be served by a court bailiff (art. 46 par. 2).
- When the mandate ends for any reason other than the lawyer's voluntary departure, the lawyer is entitled to compensation that rises with length of service, from two monthly payments after one year to twelve after sixteen years (art. 46 par. 3).
- The rules on annual leave and leave allowance for private-sector employees apply (art. 46 par. 1).
- The lawyer exercises professional duties freely, as the law and the lawyer's conscience require, and is not subject to the client's managerial authority or staff hierarchy (art. 42 par. 2, added in 2021).
- The same lawyer may still take on matters for other clients (art. 42 par. 1).
05
A retainer with a law firm, and a tax note
When the retainer is with a law firm, written instructions are treated as given to the firm even when addressed to a partner or associate; the fee is agreed by the manager or a person the manager has authorised (art. 55 pars 1 and 3, as amended by Law 4938/2022).
For income tax, services that an individual provides as a lawyer for a fixed retainer (πάγια αντιμισθία) count as an employment relationship, so the income is employment income (Income Tax Code, Law 4172/2013, art. 12 par. 2(e)). How a particular arrangement is treated for tax and accounting purposes is a matter for the company's accountant.
06
L+A's retainer for businesses
L+A, a business law firm in Piraeus since 1926 with a presence in Alimos, Athens, works with companies on retainer. Scope, monthly fee and engagement letter are set out in a written proposal before any commitment. What the retainer includes and the amount from which the fee starts are stated on the Proactive Support page.
This page concerns companies. It gives general information about the Lawyers' Code and is not legal advice. Reviewed on 11 November 2026.
07
Sources
Legislation behind the statements on this page, read in the Government Gazette (ΦΕΚ) and checked for amendments in every ΦΕΚ Α' issue up to 11 November 2026:
- Law 4194/2013, Lawyers' Code (ΦΕΚ Α' 208/27.9.2013): arts 5 par. 2 (ways of paying a lawyer), 8(a) (services for an annual or monthly fee), 38 (confidentiality), 42 to 46 (lawyer under a salaried mandate), 55 (law firms and third parties), 57 (right to a fee and expenses), 58 (fee by written agreement), 59 (hourly fee), 60 (outcome-based fee), 71 (fee on settlement), 77 (fee when the instruction is withdrawn).
- Law 4820/2021 (ΦΕΚ Α' 130/23.7.2021), art. 188: added pars 2 and 3 to art. 42 of the Lawyers' Code (independence of the lawyer under a salaried mandate).
- Law 4370/2016 (ΦΕΚ Α' 37/7.3.2016): replaced items (b) and (c) of art. 43 par. 2 of the Lawyers' Code (selection of lawyers by public-sector bodies; not relevant to private companies).
- Law 4938/2022 (ΦΕΚ Α' 109/6.6.2022), art. 132: added two sentences to art. 55 par. 1 of the Lawyers' Code; arts 55 pars 1 and 3 are cited as in force after it.
- Income Tax Code, Law 4172/2013, art. 12 par. 2(e).
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