Organisational Level Agreement Template for England and Wales

An Organisational Level Agreement (OLA) is an internal contract that formalizes service relationships between different departments within your organization. Unlike external Service Level Agreements with third parties, an OLA governs how internal teams work together, establishing clear performance metrics, responsibilities, and operational procedures under England and Wales jurisdiction.

When do you need this document?

You need an OLA when your organization requires formal structure for internal service delivery. This typically occurs in larger organizations where IT departments provide services to business units, HR supports multiple divisions, or facilities management serves various departments. The agreement becomes essential when you need to establish accountability for service quality, define response times for internal requests, or create measurable performance standards between teams. It's particularly valuable during organizational restructuring, when implementing new internal processes, or when departments struggle with unclear service expectations.

Key legal considerations

Your OLA must clearly define the scope of services, performance metrics, and consequences for non-compliance. Include specific service level targets, escalation procedures, and dispute resolution mechanisms. Address data protection obligations under UK GDPR and Data Protection Act 2018, particularly when personal data transfers occur between departments. Consider employment law implications under the Employment Rights Act 1996 if the agreement affects staff responsibilities or performance measures. Ensure roles and responsibilities align with existing employment contracts and don't create conflicting obligations. Include provisions for agreement updates, as internal structures and requirements frequently change. Address intellectual property ownership for any work products created through the service relationship.

Legal requirements in England and Wales

Under the Contract Law Act 1999, your OLA must demonstrate clear offer, acceptance, and consideration, even between internal departments. While internal agreements have more flexibility than external contracts, they must still meet basic contract formation requirements. The Contracts (Rights of Third Parties) Act 1999 may apply if your agreement affects employees or other departments not directly party to the OLA. Ensure compliance with UK GDPR when services involve personal data processing, including clear data processing roles and responsibilities. Employment legislation requires that any service obligations don't contradict existing employment terms or create unrealistic performance expectations. The Equality Act 2010 mandates that service delivery standards don't discriminate against protected characteristics. Include termination clauses that respect employment rights and provide reasonable notice periods for service changes affecting staff workload or responsibilities.