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08.012016

The termination clause in the agency agreement.

The Labour Section of the Court of Appeal of Milan, with its first-time ruling n. 218/2013, complied with the most recent case law of legality, which has changed its approach in the light of multiple changes to legislation made due to the effect of EU rights on internal regulations regarding rights to be recognised to the agent in the event of termination of a contractual relationship. In particular, the Court of Appeal stressed that “in the event of recourse by the proposing firm to an express termination clause, the same may be considered legitimate only if it does not justify a termination without notice in concrete situations and with procedures in accordance with law or collective employment agreements not legitimising a termination for just cause, while as regards giving substance to the just cause itself, the judge must, nevertheless, verify (…) whether there exists a default of the agent giving rise to just cause for termination”.