FAQs Archive - Orpen Franks Solicitors LLP

Q: Can a principal make me retire?

Your principal will not be able to force you to retire without making post-termination payments to you, under the Regulations.

Q: What happens if I die – can my estate sue my principal?

Yes – if you die while acting as a commercial agent for your principal, your estate is able to make a claim against your principal for post-termination payments under the Regulations.

Q: What happens if I want to retire as a commercial agent – do I get any money?

If you retire as a commercial agent on the grounds of ill health or old age, you are still entitled to claim post-termination payments from your principal under the Regulations. However, if you wish to retire as a commercial agent before the normal retirement age, you may not be able to make a claim under the Regulations. We would recommend that you get in touch with us in order that we may advise you on this point.

Q: Do I have any other claims on termination and if so, what for?

It is possible that you may also have claims under Regulations 7, 8 and 15. Regulation 7 provides that an agent should be paid all commissions due to him during the course of the agency. If your principal has not paid you all commissions due to you up to termination, you would have a claim under Regulation 7. Regulation 8 provides that you should be paid commissions on all sales made by your principal to your customers and/or in your territory, for a reasonable period after the termination of your agency. This is often known as pipeline commission. Regulation 15 – you may have a Regulation 15 claim if you have not been provided with sufficient notice of the termination of your agency.

Q: How do I make a claim?

You should get in touch with us in order that we may advise you as to the correct procedure to be followed to set out your case.

Q: What do I do if after termination, my principal won’t pay me what I am owed?

In this case, you are likely to have a claim against your principal under the Regulations for post-termination payments. We would suggest that you get in touch with us in order that we may advise you in relation to your claim and its potential value.

Q: What if my principal doesn’t give me as much notice as it should?

If you are provided with insufficient or no notice of the termination of your agency, you are likely to have a claim against your principal for a payment “in lieu of” the notice which should have been provided to you. It is not possible to agree shorter notice periods than those provided in the Regulations and therefore, regardless of what your written agency agreement might say, the notice periods provided in Regulation 15 should be complied with.

Q: What if my principal makes it impossible for me to do my job?

If your principal makes it impossible for you to carry out your role as an agent, for example, by taking away samples required for you to do your job, it is possible that your principal may be in repudiatory breach of the agency agreement. This breach might be capable of acceptance by you, which would bring the agency agreement immediately to an end and preserve your right to post-termination payments. If you think your principal might be in repudiatory breach, you should contact us immediately in order that we may advise you.

Q: Should I be given notice of termination of my agency and, if so, how much?

If your principal is alleging that you are in repudiatory breach, it is not obliged to give you any notice of termination. If your principal is not alleging repudiatory breach, the notice required to be given will be dependent on the length of the agency. For any agency which has lasted for three years or more, you must be given three months’ notice of the termination of your agency. If the agency has lasted for two years then you should be given two months’ notice and one year, one months’ notice etc. However, if you have a written agency agreement in place which provides that you should be given a longer notice period than three months’, it is likely that this longer period would apply.