Commercial agents in the UK have strong statutory rights under the Commercial Agents (Council Directive) Regulations 1993. These cannot be contracted out of and include rights to commission on repeat orders, compensation or indemnity on termination, and minimum notice periods.
- Regulations 1993 apply to most commercial agency relationships — cannot be excluded
- Agent has right to commission on all orders from customers in their territory during agency
- Termination compensation: typically 1 year's average annual commission
- Minimum notice: 1 month (year 1), 2 months (year 2), 3 months (year 3+)
- Commercial agents acting in own name are not covered
Legal reference: Commercial Agents (Council Directive) Regulations 1993; SI 1993/3053