Compensation on termination of agents

Termination of Agency

Vero Consulting are highly experienced at helping principals ensure they pay the appropriate compensation* to their former agents on termination of the commercial agency agreement.  Drawing on our wide experience we work with principals and their lawyers throughout the process to ensure that fair compensation is paid to the agent.

When an agency ends or is terminated, an agent may ask the principal for compensation*. We will support the principal and their legal team to quantify the reasonable compensation payable in accordance with the Regulations and latest case law.  We also help the principal respond to an agent’s compensation claim, assist during negotiations, mediations and throughout this challenging process.

We have acted in many compensation cases and most have settled following negotiations.  We have also given evidence in several leading reported cases (further details here). In every case where we acted for the principal we have helped ensure the principal only pays the fair compensation due.

In exceptional cases when claims do not settle by negotiation, we have prepared expert witness reports on the compensation due in compliance with the Civil Procedure Rules on expert evidence and given oral evidence in court or at arbitration in support of our opinion.

In addition, drawing on this wide experience we can advise principals on managing the risk of large claims by designing strategies to reduce their exposure to large compensation claims.

Compensation on termination of commercial agent

We utilised the services and expertise of Mr Charles Lazarevic of Vero Consulting Limited during a recent agency valuation project.  We found his knowledge and understanding of the area to be highly professional and extremely competent, we were able to completely trust the advice he presented to us.  His ability to provide “real world” experience in the matter was invaluable.


I would wholeheartedly recommend Vero Consulting in any agency valuation matter.


Charlie Pillans, CEO, Q Medical Technologies Ltd

* Regulation 7, 8 and 17, The Commercial Agents (Council Directive) Regulations 1993

Charles Lazarevic is the author of the chapter on the compensation aspects of commercial agencies in Susan Singleton’s Commercial Agency Agreements: Law and Practice (5th Edition, 2020).

The team have acted in numerous cases across a wide range of industries, including:

  • multi-agency businesses
  • soft drinks
  • personal healthcare products
  • branded footwear
  • tobacco products
  • bathroom appliances
  • software
  • freight forwarding
  • air cargo
  • industrial precision measuring equipment
  • shipbuilding
  • aircraft spares
  • bulk handling equipment
  • medical supplies
  • medical diagnostic equipment

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