Termination of commercial agency
Termination of commercial agency

The following Commercial practice note provides comprehensive and up to date legal information covering:

  • Termination of commercial agency
  • Commercial agencies for fixed and indefinite periods
  • The right to immediate termination
  • Method of termination
  • Entitlement to payment on termination or expiry
  • Indemnity
  • Compensation
  • Notification of claim
  • Indemnity v compensation
  • Insolvency
  • More...

This Practice Note covers how the Commercial Agents (Council Directive) Regulations 1993 (the Commercial Agents Regulations), SI 1993/3053 govern the termination of a commercial agency arrangement. It covers a commercial agent’s rights to notice of termination and to payment of compensation or an indemnity in the event of such termination. It discusses the way that compensation and indemnity are calculated on termination of a commercial agency arrangement under the Commercial Agents Regulations and their relative merits for principals or commercial agents.

The Commercial Agents Regulations implemented Council Directive 86/653/EEC (OJ L 382/17), the EU Commercial Agents Directive. When the UK left the EU on exit day (31 January 2020), the European Union (Withdrawal Agreement) Act 2020 (EU(WA)A 2020) gave effect to the transition/implementation period and the UK continued to be subject to the jurisdiction of the Court of Justice of the European Union in accordance with the UK’s prior membership of the EU and the provisions of the Withdrawal Agreement until 11 pm on 31 December 2020, a point known as the implementation period completion day (IP completion day). From IP completion day, the Commercial Agents Regulations form part of the body of retained EU-derived law in the UK under the provisions of the European Union (Withdrawal) Act 2018 (EU(W)A 2018) as amended by EU(WA)A 2020.

This Practice Note includes references to EU case law, which was binding on

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