Quite simply , we find that many businesses fail to recognise the right?s that have been granted to the Sales Agent in respect of The Commercial Agent?s (Council Directive) Regulations 1993 and it?s subsequent amendments . Many Agent?s find that the company for whom they have been taking orders for simply do not pay them for the work undertaken on their behalf , replace them with another Agent or dispose of all of their Agent?s and employ Sales Representatives because they believe this will save them money . In some instances these companies have a valid reason for not paying their Agent , however , in the bulk of the cases we see the Principal (Company) is just treating the Agent as a second class citizen knowing that if they treated their employee?s in this manner they would simply leave .
Many Agent?s put up with the poor behaviour of the Principal for months on end and suffer in silence allowing the Principal to even increase the time period it takes them to pay their Agent?s whilst the Agent unwittingly becomes a line of credit to the Principal that they probably were unable to obtain from their bank . Quite often we find that the performance of the Agent has been affected by the Principal?s ability to reimburse the Agent for the work that the Agent has already performed but for which they have not been paid . Amazingly , the Principal will try to use this as a reason for disposing of the Agent on the grounds of being a performance related issue and simply replace them with another Agent !
We have even heard of instances in respect of a company based in Kent where the company decided that once a customer achieved a turnover of ?10,000 per annum they would become a ?house account? and no further commission would be paid on that account ? and then even had the cheek to inform the Agent that now that such customer had been removed from his client base he was no longer meeting his target?s and wanted to dismiss him on performance related issues !
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