Implementing legislation
Provisions governing commercial agency contracts are contained in Act No. 89/2012 Coll., the Civil Code.
Proper notice
The notice period for the first year of the agency is one month, two months for the second year and three months for the third and subsequent years.
In the case of an exclusive agency:
Indemnity or compensation or both
The former indemnity which was available to agents has been replaced by a “special remuneration“. Such special remuneration has to be demanded by the agent within one year of termination of the contract.
Calculation of indemnity/compensation
Special remuneration may not exceed the average annual commission over last 5 years or, if the duration of the contract was less than 5 years, over the contractual period. If the duration of the contract was less than a year, the special remuneration cannot exceed the total commission for the entire duration of the contract.
The calculation of the special remuneration is based on:
Pre-termination commission
Yes.
Post-termination commission
Yes.
Back commission
Yes.
Other comments
The parties may agree to the restraint of trade clause with several restrictions set out by law.
The agent has the right to access such information of the principal (including the principal’s books) which is required to verify the amount of the commission due to that agent.
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