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Severance allowance of commercial agents in Spain.

Regulated by Directive 86/653/CCE , transposed by Spanish Law 12/1992 of May 27th. of commercials agents.

The contracts rules would be freely chosen by the parties, unless mandatory standards or police laws (if all elements of a contract are in a country, the contract cannot be submitted to the law of another country). In this regard, article 3.1 of the Rome Convention and the same article of the Rome Regulation, and the Judgment of the EU Court of Justice of 9 November 2000, Ingmar Case.

The compensations are two:

a) for rise customers (Article 28 LCA ), in case of open-ended contract, fixed contract or death of the agent, if there is an influx of new customers or increased operations by the agent, who can continue to benefit the employer at the end of the contract. You should check in the contract if its contains a disclaimer jurisdiction clause and you should calculate all commissions the agent will lose by the end of his contract. Compensations are limited to agent’s average remuneration in last five years or during its term if lower period.

b ) damage payments. (Article 29 LCA) . 3 cumulative conditions : open-ended contracts, unilateral break of the employer, and no amortization expected for expenses of the agent charged by the employer for performance of the contract.

There will be no compensation (Article 30) : in case of default of the agent, the waiver thereof by contract (no breaches of the employer ) , or if the parties consented to assignment by the agency contract to another agent. The term of the statute of limitations is one year from the termination of the contract .

 

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