Service Level Agreement Template for England and Wales

A Service Level Agreement sets out the specific standards and quality levels a service provider must meet when delivering services to their customer. It's a legally binding contract that spells out everything from response times and system uptime to how problems get fixed and what happens if things go wrong.

Common in IT outsourcing, cloud services, and professional services across England and Wales, these agreements protect both parties by clearly defining expectations and consequences. They typically include performance metrics, compensation details, and dispute resolution procedures aligned with UK contract law. Good SLAs also outline penalties for missed targets and specify how service quality will be measured and reported.

Service Level Agreements become essential when you're outsourcing critical business functions or relying on external providers for important services. They're particularly valuable when working with IT service providers, facilities management companies, or professional service firms where service quality directly impacts your operations.

Use an SLA any time the cost of service failure would significantly harm your business - like when managing data centers, customer support operations, or security services. UK businesses often implement these agreements during vendor selection and contract negotiations to establish clear performance standards, protect against service disruptions, and ensure compliance with regulatory requirements around data protection and business continuity.

• Operational Level Agreement: Internal SLA between different departments within the same organization, defining support and delivery expectations
• Cloud Service Level Agreement: Focuses on cloud computing metrics like uptime, data protection, and disaster recovery
• SLA For Software Development Project: Covers development milestones, bug fixes, and maintenance requirements
• SaaS Service Level Agreement: Specifically for software-as-a-service, addressing availability, performance, and support levels
• SLA Agreement: Standard template covering general service provision across various industries

• Service Providers: IT companies, cloud providers, facilities managers, or professional service firms who must deliver services to agreed standards
• Client Organizations: Businesses receiving the services who need guaranteed performance levels and clear remedies
• Legal Teams: In-house or external solicitors who draft and review Service Level Agreements to ensure enforceability
• Operations Managers: Monitor and report on service delivery against agreed metrics
• Procurement Officers: Negotiate terms and manage vendor relationships
• Compliance Officers: Ensure agreements meet regulatory requirements and industry standards

• Define Core Services: List all services to be delivered, including specific tasks, responsibilities, and expected outcomes
• Set Performance Metrics: Establish measurable targets for quality, response times, and availability
• Map Stakeholders: Identify all parties involved, their roles, and contact details for escalation procedures
• Gather Requirements: Document technical specifications, compliance needs, and industry standards
• Plan Monitoring: Determine how service levels will be measured and reported
• Define Remedies: Specify consequences for missed targets, including service credits or termination rights
• Review Draft: Use our platform to generate a legally-sound agreement that covers all essential elements

• Parties and Scope: Clear identification of all parties and detailed description of services covered
• Performance Metrics: Specific, measurable service levels with defined calculation methods
• Service Credits: Financial compensation structure for failing to meet agreed standards
• Reporting Requirements: Regular performance reporting schedules and formats
• Data Protection: GDPR compliance measures and data handling procedures
• Force Majeure: Circumstances excusing performance failures
• Dispute Resolution: Clear procedures for handling service level breaches
• Termination Rights: Conditions and process for ending the agreement
• Governing Law: Explicit statement of English law jurisdiction

Service Level Agreements (SLAs) are often confused with Master Service Agreements (MSAs), but they serve distinct purposes in business relationships. While both deal with service provision, they operate at different levels of detail and scope.

• Framework vs. Metrics: MSAs establish the overall business relationship and general terms, while SLAs focus specifically on performance standards and service quality measurements
• Duration and Change: MSAs typically remain stable throughout the relationship, while SLAs can be regularly updated to reflect changing service requirements
• Enforcement Mechanisms: SLAs include specific penalties and remedies for missed targets, whereas MSAs cover broader dispute resolution and termination rights
• Documentation Hierarchy: The MSA usually serves as the primary agreement, with SLAs operating as supporting documents that detail operational requirements
• Performance Management: SLAs contain detailed metrics and reporting requirements, while MSAs focus on commercial and legal terms