HC Deb 15 March 1989 vol 149 c270W
Dr. Blackburn

To ask the Chancellor of the Duchy of Lancaster if he will make a statement regarding the implementation of the European Community directive on self-employed commercial agents.

Mr. Atkins

Our present intention is that the directive should be implemented by regulations under section 2(2) of the European Communities Act 1972. The regulations do not need to come into force before 1 January 1994 and will not be made before 1992.

Where the directive allows member states discretion our present conclusions in the light of consultations are as follows:

  1. (a) Agents will be entitled to commission where they have an exclusive right to a specific geographical area or group of customers.
  2. (b) On the termination of an agency contract, the agent will be entitled to compensation for damage in line with United Kingdom practice and not an "indemnity".
  3. (c) The regulations will exclude from their scope those for whom acting as a commercial agent is a secondary business activity or for whom it is the sole business activity but still a secondary pursuit.
  4. (d) There will be no requirement for agency contracts to be recorded in writing except where one party to the contract requests it.
  5. (e) The maximum period of notice will be three months for a contract that has run three years or more.
  6. (f) The principal will be required to notify the agent concerned within a reasonable period of his acceptance, refusal or non execution of a transaction, and also that goods have been delivered to the customer.

Nearer the time of making the implementing regulations, there will be further consultation as appropriate on the details.