What is a commercial agent?
A commercial agent (handelsagent) is an independent intermediary who continuously arranges or concludes sales in another company's name for commission. A travelling salesperson (handelsrejsende) is an employee who does the same as part of their job, typically away from the company's premises. Both are governed by the Danish Commercial Agents Act (handelsagentloven).
The agent's right to commission
| Rule | Content |
|---|---|
| Section 10: after termination | Commission on deals concluded after termination if mainly brought about by the agent's work and concluded within a reasonable time |
| Section 12: payment | Commission must be paid no later than the last day of the month after the quarter in which it fell due |
| Section 13: statement | The agent must receive a statement with all material information used in the calculation |
| Section 14: customer does not pay | The claim lapses only if it is shown that the deal will not be performed and this is not the principal's fault |
| Section 15: verification | The agent can demand all information, including extracts from the books, and in some cases an auditor's review |
| Sections 25-28: compensation | On termination the agent may be entitled to compensation of up to one year's commission, based on the average of the last 5 years. The claim must be notified within 1 year |
The rules on payment, statements and compensation cannot be waived to the agent's detriment.
Travelling salespeople
For travelling salespeople paid wholly or partly by commission, several of the agent rules apply via section 33, including sections 9-10 on the right to commission and sections 13-15 on statements and verification. The differences: commission falls due monthly, and the compensation rules in sections 25-28 do not apply. If the rep is also a salaried employee, the Salaried Employees Act applies alongside.
Example: an agent's quarterly statement
An agent earns 10% commission. In Q1 the agent arranges orders worth DKK 900,000, and customers pay DKK 820,000 within the quarter.
| Item | Amount |
|---|---|
| Commission on orders paid in the quarter (10% of DKK 820,000, per the agreement) | DKK 82,000 |
| Payment deadline | 30 April |
| Statement | By the same date, order by order |
What it means for you
- The statement must be verifiable. The agent has a right to see the basis.
- Commission on orders after termination needs a clear rule in the agreement.
- Estimate the possible compensation before terminating an agency.
Agents and travelling salespeople in Prowi
Prowi produces a statement per person and period, with every deal, rate and correction visible, which covers the section 13 requirement for all material information.
Prowi is not a law firm. This page describes the general Danish rules; collective agreements and individual contracts can give other rights. Talk to your employers' association or a lawyer when money is at stake.
In Prowi
Every term on this page is a rule you can write into a commission model in Prowi. The model reads the deal from HubSpot the second it closes, applies the rule, and the rep sees the result on their phone before the day is over.