The directive sets out the minimum period of notice, which depends on the time the contract has already lasted. The directive contains mandatory provisions that oblige the principal to indemnify or compensate the agent for damage after termination of the contract in accordance with its terms. Article 20 provides that restraint of trade clauses having effect after termination of the agency contract are to be concluded in writing, limited to the geographical area or group of customers entrusted to the agent and to the kind of goods covered by the contract. Such a clause may not be imposed for more than two years after termination. There is no parallel harmonisation in respect of distributor relationships but national law may limit freedom of contract or prescribe e.g. termination payments in some countries.
Local advice is advisable.
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