Operating Service Agreement for the United Kingdom

Operating Service Agreement Template for England and Wales

An Operating Service Agreement is a comprehensive legal document governed by English and Welsh law that establishes the terms and conditions under which one party provides operational services to another. It details service specifications, performance standards, pricing structures, and operational responsibilities while ensuring compliance with UK regulatory requirements, including data protection and service quality standards. The agreement typically includes service level agreements (SLAs), performance metrics, and remedies for service failures.

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What is a Operating Service Agreement?

The Operating Service Agreement is essential for businesses requiring formalized operational service arrangements under English and Welsh law. This contract type is particularly valuable when establishing long-term service relationships that require clear performance metrics, service standards, and operational procedures. The agreement addresses key aspects such as service delivery, quality standards, pricing, liability allocation, and regulatory compliance, providing a robust framework for managing operational service relationships while protecting both parties' interests.

What sections should be included in a Operating Service Agreement?

1. Parties: Identification and details of contracting parties

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Services: Detailed description of services to be provided

5. Service Levels: Performance standards and metrics

6. Charges and Payment: Pricing, payment terms, and invoicing

7. Term and Termination: Duration and termination provisions

8. Liability and Indemnities: Risk allocation between parties

What sections are optional to include in a Operating Service Agreement?

1. Change Control: Process for managing changes to services - recommended for complex or long-term service arrangements

2. Force Majeure: Provisions for unforeseen circumstances that may affect service delivery

3. TUPE: Employee transfer provisions - required when service provision involves staff transfers

What schedules should be included in a Operating Service Agreement?

1. Schedule 1 - Service Description: Detailed specification of services

2. Schedule 2 - Service Levels: Detailed performance metrics and KPIs

3. Schedule 3 - Charges: Detailed pricing structure and calculations

4. Schedule 4 - Data Processing Agreement: GDPR-compliant data processing terms

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Operating Agreement

Sector

Sales

Cost

Free to use
Industries

Supply of Goods and Services Act 1982: Core legislation governing service agreements, covering quality requirements, reasonable care and skill obligations, and timing of service delivery

Unfair Contract Terms Act 1977: Regulates exclusion clauses, implements reasonableness test for terms, and governs liability limitations in contracts

Consumer Rights Act 2015: Relevant for B2C contracts, establishing service standards, consumer protection provisions, and regulations on unfair terms

Data Protection Act 2018 and UK GDPR: Governs data processing requirements, data protection obligations, and privacy considerations in service delivery

Contract Law Fundamentals: Essential principles including offer and acceptance, consideration, and intention to create legal relations

Employment Law: Covers IR35 implications, worker status considerations, and employment rights that may affect service agreements

Intellectual Property Rights: Provisions relating to copyright, trademarks, and patent rights in service delivery

Competition Law: Addresses anti-competitive provisions and market dominance issues in service agreements

Industry-specific Regulations: Sector-specific regulatory requirements that may apply depending on the nature of services provided

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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