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International Law

: Swedish Law Blog

Swedish Law - Severance Compensation to Sales Agents - 30 § Sales Agency Act

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30 § of the Sales Agency Act deals with the right to severance compensation, if the agent terminates the contract himself. The provision is mandatory to the sales agent's benefit and is based Article 18 of the EC Directive.

The agent is entitled to severance compensation only if
1. the termination is due to a circumstance attributable to the principal enabling the sales agent to terminate the agreement with immediate effect according to § 26 of the Sales Agency Act, or
2. because of the agent's age or illness or similar circumstances, the sales agent cannot reasonable be required to continue his activities.

As regards the first paragraph it should be noted that it includes termination due to breach of contract as well as termination "due to an important reason". Compare the commentary on § 29 above.

If the sales agent is a company or other legal entity, the second paragraph of the provision may be invoked in case of old age, sickness or death of centrally placed executives in the agency company.

Full post as published by Swedish Law Blog on August 30, 2010 (boomark / email).