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It is unlikely that the Regulations themselves will be repealed by Parliament and therefore, these Regulations are likely to continue to bind agency relationships for the foreseeable future.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

art
  • 24 September 2026
  • Public Procurement

Procurement challenges: What documents and information are bidders entitled to?

A tricky feature of public procurement challenges for unsuccessful bidders is that contracting authorities usually hold all the cards. When the outcome of a tender conducted under the Procurement Act 2023 has been decided, authorities must provide bidders with an Assessment Summary containing their scores for each of the award criteria and those of the successful bidder and an explanation for those scores.

art
  • 23 September 2026
  • Corporate and M&A

GDPR Privacy Policies: Key requirements for organisations

When an organisation is creating a website or app to reach users or potential customers drafting a Privacy Policy may be an afterthought. However, failure to write a Privacy Policy, which complies with the relevant legislation, can have serious consequences.

Pub
  • 17 September 2026
  • Employment

Employment law changes in 2026: What you need to know

Stay ahead of the latest UK employment law changes. Watch our on demand webinar with Monica Atwal and Harry Berryman covering key HR developments and employment law updates for 2026.

art
  • 16 September 2026
  • Employment

Received an Employment Tribunal Claim? 6 Things Employers Should NOT Do

We are well and truly underway with implementation of the Employment Rights Act 2025 (“ERA 2025”) and October brings the next tranche of changes that employers will need to be ready for.

art
  • 14 September 2026
  • Corporate and M&A

Key provisions found in a Shareholders’ Agreement – SHA Series Part 2 of 5

Discover the key provisions in a shareholders’ agreement, including ownership, decision-making, share transfers, exits and leaver clauses.

art
  • 11 September 2026
  • Privacy and Data Protection

Data Protection Breaches – Personal Liability for Employees

It is well known that employers have obligations under the Data Protection Act 2018 (the “Act”) but, perhaps lesser known, is that employees can be held personally liable for certain actions amounting to criminal offences under the Act.