Monday, August 23, 2010

Swedish Law - Severance Compensation to Sales Agents

As I quite often get questions about the rules on severance compensation to sales agents, I will briefly cover the current rules in some coming blog posts.

Questions concerning agents are governed by Act (1991:351) on sales agency, usually referred to as the Sales Agency Act. Paragraphs 28-31 deal with issues of severance compensation to the sales agent in connection with the termination of an agency agreement.

* 28 § of the Sales Agency Act sets out the basic terms of when and under what conditions a sales agent is entitled to severance compensation
* 29 § of the Sales Agency Act sets out provisions about when severance compensation is not payable to the sales agent
* 30 § of the Sales Agency Act covers severance compensation when the sales agent himself has terminated the agency agreement
* 31 § of the Sales Agency Act establishes the time requirements for demands of severance compensation

One very important thing to remember is that the sales agent is not bound by contractual arrangements which are less favourable to him than the provisions of paragraphs 28 through 31.

In my next post I will present the contents of § 28 of the Sales Agency Act.

No comments: