Italy's Supreme Court rules on agent termination rights

The Italian Supreme Court (Cassazione) has issued a ruling clarifying the rights of agents and financial promoters regarding the termination of agency contracts. In ordinance n. 11223/2026, the Court overturned a decision by the Court of Appeal of Rome, establishing that the principle of immutability of termination reasons does not apply equally to both parties in an agency agreement.

The case originated when a financial promoter resigned for just cause, providing only a partial list of reasons in the initial resignation letter. The principal company contested this, arguing that additional reasons presented during legal proceedings should be inadmissible. The company sought compensation for lack of notice and significant penalties for violating a stability pact, which prohibited early contract termination.

The Cassazione ruled that while a principal must provide definitive reasons for termination immediately, an agent is permitted to supplement and complete their justifications for resigning for just cause during judicial proceedings without facing inadmissibility.