Tuesday, August 31, 2010

Swedish Law - Severance Compensation to Sales Agents - 31 § Sales Agency Act

According to § 31 of the Sales Agency Act a request for severance compensation must be lodged within one year from the termination of the agreement, which is consistent with the EC directive regulating. The provision is mandatory in the sales agent's favour, thus a shorter limitation period is not allowed.

This post concludes the series of posts on severance compensation to sales agents under Swedish law.

If you have questions regarding severance compensation to sales agents, please, either put your question as a comment below or send me an email, krister //dot\\ bruzelius //at\\ wallaw //dot\\ se


Anonymous said...

We are Italian agent of a Swedish company which has suffered a reorganization. Are we entitled to get 100% paid for due commissions referred to before/during reorganization period? Is the agent considered a preferential creditor? Please consider we did not accept any transaction for part payment.

KBz said...

You are entitled to payment according to the rules on reorganisation and you should lodge a claim with the administrator for payment of commissions due. Claims for commission are not privileged claims. I do not know in what percentage the composition procedure will result but find it unlikely with a 100 % pay out.