The Austrian Sales Representatives Act stipulates that in cases of termination of a contract with a sales representative, the entrepreneur has to pay an adequate compensatory sum to the sales representative/commercial agent if he has acquired new customers or has significantly increased the volume of business with existing customers and the entrepreneur continues to derive substantial benefits from the business also after termination of the contract, so far as is equitable.

This compensatory claim (granted by Austrian law) shall represent the compensation for future loss of commissions of the sales representative.

In a recent ruling the Austrian Supreme Court decided that the compensatory claim of the sales representative does not necessarily represent the compensation for future loss of commissions. The compensatory claim of the commercial agent/sales representative against the company may arise if the entrepreneur can benefit from the new customer base after the end of the contractual relationship. As this is a very broad interpretation, the compensatory claim must be paid in all cases where the entrepreneur uses any business relations that were created by the sales representative/commercial agent. In its ruling, the Austrian Supreme Court decided that the claim must be granted for future businesses concerning substitute goods after a re-branding.