AgentLaw - EU Legislation

Sweden

Implementing legislation

Law no. 351 of 2.5.1991

Proper notice

•	1 month if less than 1 year
•	2 months if more than 1 year and less than or equal to 2 years
•	3 months if more than 2 years and less than or equal to 3 years
•	4 months if more than 3 years and less than or equal to 4 years
•	5 months if more than 4 years and less than or equal to 5 years
•	6 months if more than 5 years

Indemnity or compensation or both

Indemnity

Calculation of indemnity/compensation

Capped at a maximum of the average annual commission over last 5 years or, if less than 5 years, over duration of agency

Pre-termination commission

Yes

Post-termination commission

Yes

Back commission

Yes

Other entitlements

Right to inspect principal’s books

Restrictive Covenants

Implementing Legislation

Section 38 of the Contact Act (1915)

1) Under Swedish law is it possible to have a restraint of trade clause operating during the agency agreement and, if so, is it subject to any qualifications?

It is possible to have a restraint of trade clause operating during the agency agreement as long as it is reasonable. An unreasonable non-competition clause can be adjusted in accordance with Section 38 of the Contract Act.

2) Under Swedish law is it possible to have a restraint of trade clause operating following the termination or expiry of the agency agreement and, if so, is it subject to any qualifications?

It is possible to have a restraint of trade clause following the termination or expiry of the agreement. It is however valid only if and to the extent that:

it is made in writing;
it relates only to the territory or category of customers that has been assigned to the agent; and
it applies only to the kind of goods covered by the agency agreement.

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