HR Service Level Agreement for Malta

HR Service Level Agreement Template for Malta

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HR Service Level Agreement

"I need an HR Service Level Agreement for outsourcing our entire HR function to a third-party provider in Malta, starting March 2025, with specific KPIs for recruitment timeframes and employee satisfaction metrics, and additional provisions for managing our international workforce across three EU countries."

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What is a HR Service Level Agreement?

This HR Service Level Agreement is designed for use when an organization wishes to outsource all or part of its HR functions to an external service provider in Malta. The document serves as a crucial framework for defining the scope, quality, and delivery standards of HR services while ensuring compliance with Maltese employment law and EU regulations. It addresses key aspects such as GDPR compliance, performance metrics, service delivery standards, and risk allocation between parties. The agreement is particularly important in the Maltese context where organizations must navigate both local employment requirements and EU-wide regulations. It includes comprehensive provisions for data protection, employee rights, and service quality measurements, making it suitable for both local and international organizations operating in Malta.

What sections should be included in a HR Service Level Agreement?

1. Parties: Identification of the service provider and the client organization, including registered addresses and company registration numbers

2. Background: Context of the agreement, including the client's need for HR services and the provider's expertise

3. Definitions: Definitions of key terms used throughout the agreement, including technical HR terminology and service-specific definitions

4. Scope of Services: Detailed description of HR services to be provided, including core responsibilities and deliverables

5. Service Provider Obligations: Specific duties and responsibilities of the HR service provider, including quality standards and compliance requirements

6. Client Obligations: Responsibilities of the client organization, including provision of information and access needed for service delivery

7. Service Levels: Specific performance metrics, KPIs, and service standards that the provider must meet

8. Data Protection and Confidentiality: GDPR compliance measures and confidentiality obligations for handling employee and company data

9. Fees and Payment Terms: Pricing structure, payment schedule, and related financial terms

10. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination

11. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations

12. Dispute Resolution: Procedures for handling disputes, including jurisdiction and governing law provisions

13. General Provisions: Standard legal clauses including force majeure, notices, and assignment rights

What sections are optional to include in a HR Service Level Agreement?

1. Transition Services: Procedures for transitioning HR services from existing providers or internal teams - include when taking over from another provider

2. Business Continuity: Disaster recovery and business continuity procedures - include for critical HR services

3. International Services: Specific provisions for multi-jurisdictional HR support - include when services span multiple countries

4. Compliance Training: Provider's obligations to deliver compliance training - include when training services are part of the scope

5. Technology and Systems: Specifications for HR technology platforms and integration - include when technology services are provided

6. Staff Transfer Provisions: TUPE/transfer of undertakings provisions - include when staff will transfer between parties

7. Performance Penalties: Specific penalties for missing service levels - include for high-value or critical service agreements

What schedules should be included in a HR Service Level Agreement?

1. Schedule 1 - Service Specifications: Detailed breakdown of each HR service component and delivery specifications

2. Schedule 2 - Service Levels and KPIs: Comprehensive metrics, measurement methods, and reporting requirements

3. Schedule 3 - Fee Schedule: Detailed pricing structure, including base fees and additional service charges

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

5. Schedule 5 - Implementation Plan: Timeline and milestones for service implementation

6. Schedule 6 - Escalation Matrix: Contact details and procedures for issue escalation

7. Schedule 7 - Required Reports: Templates and specifications for regular service reports

8. Appendix A - HR Policies: Client's HR policies that the provider must follow

9. Appendix B - Security Requirements: Technical and organizational security measures

10. Appendix C - Key Personnel: Details of key staff assigned to deliver the services

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

Relevant legal definitions
Clauses
Relevant Industries

Professional Services

Financial Services

Technology

Manufacturing

Retail

Healthcare

Education

Hospitality

Construction

Telecommunications

Transportation and Logistics

Energy

Real Estate

Non-Profit Organizations

Government and Public Sector

Relevant Teams

Human Resources

Legal

Compliance

Operations

Procurement

Finance

Risk Management

Information Technology

Data Protection

Senior Management

Employee Relations

Relevant Roles

HR Director

Chief Human Resources Officer

HR Manager

Legal Counsel

Compliance Officer

Data Protection Officer

Operations Director

Chief Operating Officer

Procurement Manager

Contract Manager

HR Service Delivery Manager

Chief Financial Officer

HR Business Partner

Risk Manager

General Counsel

Managing Director

HR Operations Manager

Talent Acquisition Manager

Employee Relations Manager

Industries
Employment and Industrial Relations Act (Chapter 452): The primary Maltese employment law that governs employment relationships, working conditions, and industrial relations. Essential for defining basic terms and conditions that HR services must comply with.
Data Protection Act (Chapter 586): Maltese implementation of GDPR principles, crucial for handling employee personal data in HR services.
EU General Data Protection Regulation (GDPR): Directly applicable EU regulation governing personal data processing, with specific implications for HR data handling and storage.
Equal Opportunities (Persons with Disability) Act (Chapter 413): Ensures non-discrimination and equal opportunities for persons with disabilities in employment contexts.
Equality for Men and Women Act (Chapter 456): Prohibits discrimination based on gender in employment and ensures equal treatment in HR practices.
Employment and Training Services Act (Chapter 343): Relevant for HR services involving recruitment, training, and employment services.
Occupational Health and Safety Authority Act (Chapter 424): Sets requirements for workplace safety and health standards that HR services must consider.
Protection of the Whistleblower Act (Chapter 527): Provides protection for employees who report wrongdoing, relevant for HR complaint handling procedures.
Transfer of Business (Protection of Employment) Regulations: Protects employee rights during business transfers or outsourcing of HR functions.
EU Working Time Directive (2003/88/EC): Sets standards for working hours, rest periods, and annual leave that HR services must implement.
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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