{"id":4762,"date":"2026-08-25T16:10:26","date_gmt":"2026-08-25T14:10:26","guid":{"rendered":"https:\/\/djp-a9vm.1wp.site\/?p=4762"},"modified":"2026-10-19T19:04:40","modified_gmt":"2026-10-19T17:04:40","slug":"planning-to-terminate-an-agents-agreement-check-how-much-it-could-cost","status":"publish","type":"post","link":"https:\/\/djp.pl\/en\/planning-to-terminate-an-agents-agreement-check-how-much-it-could-cost\/","title":{"rendered":"Planning to terminate an agent\u2019s agreement? Check how much it could cost"},"content":{"rendered":"

\ud83d\udfe6 Planning to terminate an agent\u2019s agreement? Check how much it could cost<\/strong> \ud83d\udfe6<\/p>\n

Many businesses assume that, after terminating an agency agreement, they simply need to settle the agent\u2019s outstanding commission.<\/p>\n

\ud83d\udc49 That is not always true.<\/p>\n

Ending the relationship may also trigger an obligation to pay an indemnity<\/strong>: an additional monetary payment which, in some cases, can amount to the equivalent of the agent\u2019s annual remuneration.<\/p>\n

\u2757 Is an agent always entitled to an indemnity?<\/strong><\/p>\n

\ud83d\udeab No.<\/p>\n

The agent is entitled to this payment only where:<\/p>\n

\u27a1\ufe0f the agent brought in new customers or substantially increased business with existing customers;<\/p>\n

\u27a1\ufe0f after termination, the principal continues to derive substantial benefits from contracts with those customers;<\/p>\n

\u27a1\ufe0f equitable considerations support an award, particularly the commission the agent loses on contracts concluded with those customers.<\/p>\n

\ud83d\udcb0 How much can the indemnity be?<\/strong><\/p>\n

The law sets neither a specific amount nor a simple calculation formula. It does, however, set an upper limit.<\/p>\n

The payment cannot exceed the equivalent of the agent\u2019s annual remuneration, calculated using average annual remuneration over the previous five years.<\/p>\n

If the relationship lasted less than five years, the average over the entire term of the agreement is used.<\/p>\n

\u26a0\ufe0f What does this mean for the principal?<\/strong><\/p>\n

The biggest mistake is to assess the cost of ending the relationship solely by reference to current commission.<\/p>\n

In some cases, the indemnity may be one of the most significant elements of the final settlement with the agent.<\/p>\n

\ud83d\udccc Conclusion?<\/strong><\/p>\n

Before giving notice, analyse both the agreement and the customer portfolio the agent leaves behind: whom they acquired, how business with those customers changed and what benefits the principal may retain after the relationship ends.<\/p>\n

\ud83d\udc49 Calculate the cost of terminating an agency agreement before giving notice \u2014 rather than waiting until the agent brings a claim.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

\ud83d\udfe6 Planning to terminate an agent\u2019s agreement? Check how much it could cost \ud83d\udfe6<\/p>\n","protected":false},"author":24,"featured_media":3619,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"294","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":0,"_seopress_analysis_target_kw":"","_seopress_news_disabled":"","_seopress_video_disabled":"","_seopress_video":[],"_seopress_pro_schemas_manual":[],"_seopress_pro_rich_snippets_disable_all":"","_seopress_pro_rich_snippets_disable":[],"_seopress_pro_schemas":[],"iawp_total_views":0,"_djp_featured_image_mode":"full","footnotes":""},"categories":[{"term_id":304,"name":"Agency Tuesday","slug":"agency-tuesday-en","term_group":0,"term_taxonomy_id":304,"taxonomy":"category","description":"","parent":0,"count":35,"filter":"raw","cat_ID":304,"category_count":35,"category_description":"","cat_name":"Agency Tuesday","category_nicename":"agency-tuesday-en","category_parent":0},{"term_id":294,"name":"Articles","slug":"articles-en","term_group":0,"term_taxonomy_id":294,"taxonomy":"category","description":"","parent":0,"count":100,"filter":"raw","cat_ID":294,"category_count":100,"category_description":"","cat_name":"Articles","category_nicename":"articles-en","category_parent":0},{"term_id":301,"name":"Banking","slug":"banking-en","term_group":0,"term_taxonomy_id":301,"taxonomy":"category","description":"","parent":0,"count":38,"filter":"raw","cat_ID":301,"category_count":38,"category_description":"","cat_name":"Banking","category_nicename":"banking-en","category_parent":0}],"tags":[],"djp_center":[287],"coauthors":[],"class_list":["post-4762","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-agency-tuesday-en","category-articles-en","category-banking-en","djp_center-agency-tuesday"],"acf":{"djp_promote_now":false,"djp_promotion_days":7},"images":{"thumbnail":"https:\/\/djp.pl\/wp-content\/uploads\/2026\/06\/djp-czy-rozwiazanie-umowy-agencyjnej-konczy-obowiazek-placenia-prowizji-150x150.webp","medium":"https:\/\/djp.pl\/wp-content\/uploads\/2026\/06\/djp-czy-rozwiazanie-umowy-agencyjnej-konczy-obowiazek-placenia-prowizji-300x169.webp","medium_large":"https:\/\/djp.pl\/wp-content\/uploads\/2026\/06\/djp-czy-rozwiazanie-umowy-agencyjnej-konczy-obowiazek-placenia-prowizji-768x432.webp","large":"https:\/\/djp.pl\/wp-content\/uploads\/2026\/06\/djp-czy-rozwiazanie-umowy-agencyjnej-konczy-obowiazek-placenia-prowizji-1024x576.webp","full":"https:\/\/djp.pl\/wp-content\/uploads\/2026\/06\/djp-czy-rozwiazanie-umowy-agencyjnej-konczy-obowiazek-placenia-prowizji.webp"},"_links":{"self":[{"href":"https:\/\/djp.pl\/en\/wp-json\/wp\/v2\/posts\/4762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/djp.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/djp.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/djp.pl\/en\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/djp.pl\/en\/wp-json\/wp\/v2\/comments?post=4762"}],"version-history":[{"count":2,"href":"https:\/\/djp.pl\/en\/wp-json\/wp\/v2\/posts\/4762\/revisions"}],"predecessor-version":[{"id":5411,"href":"https:\/\/djp.pl\/en\/wp-json\/wp\/v2\/posts\/4762\/revisions\/5411"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/djp.pl\/en\/wp-json\/wp\/v2\/media\/3619"}],"wp:attachment":[{"href":"https:\/\/djp.pl\/en\/wp-json\/wp\/v2\/media?parent=4762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/djp.pl\/en\/wp-json\/wp\/v2\/categories?post=4762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/djp.pl\/en\/wp-json\/wp\/v2\/tags?post=4762"},{"taxonomy":"djp_center","embeddable":true,"href":"https:\/\/djp.pl\/en\/wp-json\/wp\/v2\/djp_center?post=4762"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/djp.pl\/en\/wp-json\/wp\/v2\/coauthors?post=4762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}