Service Level Agreement Between Two Companies Template for Ireland

When your company engages another business to provide ongoing services, a Service Level Agreement (SLA) provides the legal framework to ensure service quality and accountability. Under Irish law, this contract establishes measurable performance standards, service delivery commitments, and remedies for underperformance, protecting both parties' interests while ensuring compliance with Irish and EU regulations.

When do you need this document?

You need a Service Level Agreement when outsourcing critical business functions such as IT support, customer service, or professional consulting services to another company. This document is essential when engaging cloud service providers, managed service providers, or any third-party vendor where service quality directly impacts your business operations. It's particularly important for regulated industries like financial services or healthcare, where service failures could result in regulatory breaches. You'll also need this agreement when establishing long-term partnerships with suppliers, setting up shared service arrangements between group companies, or when service performance must meet specific industry standards or compliance requirements.

Key legal considerations

Your SLA must clearly define service levels using measurable metrics such as uptime percentages, response times, and quality standards. Include comprehensive remedies for service failures, including service credits, performance improvement plans, and termination rights. Address data protection obligations under GDPR, particularly if the service provider will process personal data on your behalf, requiring specific data processing agreements and security measures. Consider liability caps and insurance requirements, as Irish law allows parties to limit liability in commercial contracts, but exclusions for gross negligence or willful misconduct may not be enforceable. Include force majeure provisions, change management procedures, and clear termination clauses that protect your ability to retrieve data and transition services to alternative providers.

Legal requirements in Ireland

Under the Sale of Goods and Supply of Services Act 1980, service providers have implied obligations to provide services with reasonable care and skill, within a reasonable time, and at a reasonable price unless otherwise agreed. Your agreement must comply with the Competition Act 2002, ensuring that exclusive dealing arrangements or territorial restrictions don't breach competition law. If the service involves processing personal data, you must include GDPR-compliant data processing provisions and appoint Data Protection Officers where required. For electronic services, compliance with the European Communities (Electronic Commerce) Regulations 2003 may be necessary. Consider the European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003 if the service arrangement involves transferring staff between companies. Ensure the agreement includes proper Irish governing law and jurisdiction clauses, and consider whether dispute resolution should involve Irish courts or alternative dispute resolution mechanisms.