Commercial agents - quick reference guide

10 January 2008

A quick reference guide to some of the the key provisions on termination payments for commercial agents across Europe.















































CommissionIndemnityCompensation
BelgiumThe provisions laid down in the Directive cannot be altered to the agent's detrimentLevel is at discretion of the Court with a maximum of 1 year’s remuneration, calculated from the average remuneration over the preceding 5 years

Agent is entitled to damages equal to the difference between the actual damage suffered and the indemnity

France

Agent is entitled to commission:

  • on all transactions concluded during the term of the agreement; and

  • those concluded after termination where the efforts of the agent secured the transaction.

Level is at discretion of the Court but based upon:

  • origin of the clients;

  • loss of commission to the agent; and

  • goodwill value of the agency.
Generally an amount of twice the agent’s average annual remuneration.

GermanyCommission paid in accordance with the German Commercial CodeLevel is at discretion of the Court with a maximum of 1 year’s remuneration calculated from the average remuneration over the preceding 5 years
ItalyAgent entitled to commission on the agreements concluded through his activity

Payable where the agent has secured new customers or significantly developed business with existing customers and where it is deemed fair in all the circumstances.

Cannot exceed a maximum of 1 year’s remuneration calculated from the average remuneration over the preceding 5 years

Agent can claim for damages caused by unlawful termination of the agency agreement
The Netherlands

Agent entitled to commission on all transactions concluded:

  • during the term of the agreement; and

  • after termination where the efforts of the agent secured the transaction.
Maximum of 1 year’s remuneration calculated from the average remuneration over the preceding 5 yearsAgent can claim for damages caused by unlawful termination of the agency agreement
SpainCommission is payable to the agent once the principal has completed the agreements reached by the agent

Payable where the agent has secured new customers or significantly developed business with existing customers and where it is deemed fair in all the circumstances.

Cannot exceed a maximum of 1 year’s remuneration calculated from the average remuneration over the preceding 5 years

Agent can claim for damages caused by unlawful termination of the agency agreement
SwedenCommission to be determined in accordance with usual custom in the location in which the agent carries out his activities

Payable where the agent has secured new customers or significantly developed business with existing customers and where it is deemed fair in all the circumstances.

Cannot exceed a maximum of 1 year’s remuneration calculated from the average remuneration over the preceding 5 years

United Kingdom

Agent entitled to commission on all transactions concluded:

  • during the term of the agreement; and

  • after termination where the efforts of the agent secured the transaction.

Payable where the agent has secured new customers or significantly developed business with existing customers and where it is deemed fair in all the circumstances.

Limited to a maximum of 1 year’s remuneration calculated from the average remuneration over the preceding 5 years


Used as an alternative to indemnity

Assessed by an expert by reference to the value of the agency at termination



International Dispute Resolution Group