Implementing legislation
The Maltese Commercial Code (Chapter 13 of the Law of Malta), as amended by the Various Laws (Amendment) Act 2003.
Proper notice
Indemnity or compensation or both
Indemnity only.
Calculation of indemnity/compensation
Pre-termination commission
Yes.
Post-termination commission
Yes.
Back Commission
Yes.
Other comments
Any person who wishes to be a commercial agent must obtain a licence from the Council of the Maltese Chamber of Commerce.
Implementing Legislation
Maltese Commercial Code (Chapter 13 of the Laws of Malta).
1) Under Maltese 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?
Article 20 of Council Directive 86/653/EEC on the coordination of the laws of the Member States relating to self-employed commercial agents has been introduced (practically verbatim) into the Maltese Commercial Code when this was last amended in 2003.
Article 70 A of the Commercial Code defines a restraint of trade clause as “an agreement or a clause in an agreement restricting the business activities of a commercial agent following the termination of the agency contract.”
The Code does not address the situation regarding restraint of trade clauses operating during the agency agreement.
2) Under Maltese 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?
As mentioned above, the Commercial Code follows Article 20 of Council Directive 86/653/EEC and, therefore, has the same provisions regarding restraint of trade clauses operating following the termination or expiry of the agency agreement.
Article 78 G of the Commercial Code provides as follows:
agentlaw.co.uk wishes to thank Fenech & Fenech Advocates of Valletta for its contribution to this page.