Some businesses use third parties to market or sell their products. Regardless of whether or not there is an agency agreement in place you should be aware of the implications of the Commercial Agents Regulations.
If you use agents or you are an agent selling or buying goods (and not services) in the UK then it is likely that the Regulations will apply.
The Regulations confer substantial rights on self-employed agents and provide them with a level of security and protection. Many of the terms cannot be avoided, or at least may only be avoided, if the change operates in the agent’s favour.
The rights enjoyed by the agents address all aspects of the agency arrangements including their remuneration and commission, their duties and responsibilities and importantly provide for a compensation or indemnity payment being made to the agent on termination of the agency arrangement. In extreme cases this termination payment could be as much as two years’ gross commission.
If you require any further advice or assistance please contact
Sue Dowman or a member of the Corporate Commercial team at Wortley Byers on 01277
268355 or sdowman@wortleybyers.co.uk.
