[ECONOMIC LAW] Commercial agents, end-of-contract compensation and amicable agreement: pay attention to the date of signing the protocol!

The Court of Justice of the European Union (CJEU) was recently asked to rule on a preliminary question from the Belgian Court of Cassation concerning the signing, during the notice period for termination of a commercial agency contract, of a settlement agreement setting the amount of the termination indemnity.

A Belgian principal had notified several of its commercial agents of the termination of their respective contracts. A notice period had been granted in accordance with the mandatory rules in force. It was during this notice period that the parties agreed to sign a settlement agreement setting the amount of the termination indemnity.

The validity of this agreement having been challenged by some agents, litigation was initiated, and the CJEU was ultimately asked the following question:

Should the commercial agency contract be considered to have terminated at the time of notification of termination or on the actual expiry of the notice period?

Consequently, can the parties deviate from the mandatory rules regarding termination compensation, even while the notice period is still in effect?

To answer this question, the Court first reiterated the mandatory nature of the rules laid down by Directive 86/653 concerning both notice periods and termination compensation.

It then clearly stated its position: a commercial agency contract, terminated with a compliant notice period, only ends upon the expiry of that period. The parties therefore regain their freedom to deviate from the mandatory rules regarding termination compensation only after the notice period has expired.

Thus, caution is advised should the parties wish to conclude such a settlement agreement.

CJEU, 23 April 2026, Case C-204/25