In an effort to bypass the onerous burden of an employment relationship, many businesses engage commercial agents on a self-employed basis to find leads and to market their products. Historically, this has worked effectively and many of these contractual relationships have been in existence for years.
Given the recent changes in case law surrounding this area, it is time for businesses to review these agreements and consider the potentially significant liabilities that will now fall on them on termination of the contract. Whether the contract end is by mere expiry, lawful termination or the death of the agent, businesses must maximise their opportunities to minimise the large claims for damages available to these agents on termination.
