Search

How can we help?

Icon

Commercial Agency Regulations 1993 and Brexit

The Commercial Agency Regulations 1993 (Regulations) will continue to apply to agency relationships in the UK currently and decisions of the European Court of Justice (ECJ) will continue to bind the laws of England and Wales up and until 31 December. 

Whilst the regulations will continue to apply post Brexit, the decisions of the ECJ will no longer be binding on English Courts and therefore, there could be differences in the way in which cases are decided going forward. 

It is unlikely that the Regulations themselves will be repealed by Parliament and therefore, these Regulations are likely to continue to bind agency relationships for the foreseeable future. It is worth therefore reminding ourselves of some of the key terms. 

When do the Commercial Agency Regulations apply? 

The Regulations apply to commercial agency relationships – not distributorship agreements. The key difference between an agent and a distributor is the payment of a commission to an agent on conclusion of a sale with the end customer, and the end customer contracts directly with the agent’s principal and not the agent.  

Certain relationships are excluded, such as employees, partners or unpaid agents and where the agency provided is not the principal activity of the relationship between the agent and the principal 

Key provisions of the Commercial Agency Regulations

Unless expressly provided, the Regulations provide the agent with a reasonable or customary entitlement to remuneration for the provision of services and in certain circumstances, entitlement to commissions on transactions which have been provided after the agency relationship has been concluded.  

The Regulations also set out rules in respect of the termination of agency contracts.  The Regulations provide for implied notice periods for those relationships which do not have a finite period or fixed period agency relationships, where relations continue after the fixed period has come to an end.  

The Regulations contain a statutory right for an agent to receive compensation for losses suffered as a result of the agreement being terminated by the principal.  

Can they be excluded from application in an agency agreement? 

Generally speaking, the operative provisions cannot be excluded from an agency relationship but in certain circumstances their application can be minimised.

Whilst the regulations will continue to apply post Brexit, the decisions of the ECJ will no longer be binding on English Courts and therefore, there could be differences in the way in which cases are decided going forward. 

Conclusion  

The Regulations will continue to be important in governing agency relationships in the post Brexit world for the UK. It will be interesting to see how, over time, the Regulations are interpreted (and if differently) by the UK and European Courts.

Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

Author profile

About this article

Read, listen and watch our latest insights

Pub
  • 04 December 2025
  • Immigration

UK Immigration: What to expect in 2026 for employers

Join our UK immigration specialists, Ruth Karimatsenga and Monica Mastropasqua, as they explore the key updates and how they affect your business in 2026.

Pub
  • 04 December 2025
  • Corporate and M&A

Autumn Budget 2025 Breakdown: Key takeaways for business buyers and sellers

Join Stuart Mullins and Nicky Goringe Larkin as they delve into the key updates from the Chancellor’s announcement, with a focus on what matters most for businesses looking to buy and sell.

art
  • 03 December 2025
  • Corporate and M&A

Why is carrying out a legal Due Diligence investigation necessary during an proposed acquisition?

Merging with or acquiring another company is a high-stakes endeavour. The purpose, process and common areas of investigation during a M&A transaction.

art
  • 02 December 2025
  • Employment

All I Want for Christmas… Is No Tribunal Claims!

Before the festivities begin, it is worth unwrapping the key risks and understanding how employers can protect their staff, their reputation and their sanity, while still delivering a thoroughly enjoyable evening.

art
  • 01 December 2025
  • Immigration

Government consultation on extending settlement requirements: What employers and migrants need to know

This article summarises the key proposals , groups who will and will not be affected by the extending settlement requirements, and the potential impact for employers, workers and families.

art
  • 28 November 2025
  • Commercial Real Estate

Auction Sales: Key Things to Consider

Buying or selling a property at auction can offer both buyers and sellers unique advantages, but it also comes with potential risks.