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Supplier Service Level Agreement for the United Kingdom

Supplier Service Level Agreement Template for England and Wales

A Supplier Service Level Agreement is a legally binding contract governed by the laws of England and Wales that establishes specific performance metrics, service standards, and deliverables between a service provider and their customer. It defines measurable service levels, response times, availability requirements, and remedies for service failures. The agreement includes detailed monitoring and reporting mechanisms, service credits for underperformance, and establishes clear accountability for service delivery.

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What is a Supplier Service Level Agreement?

The Supplier Service Level Agreement is essential for organizations seeking to establish clear, measurable standards for service delivery and performance. This document, governed by English and Welsh law, is commonly used when engaging external service providers for critical business functions. It includes specific performance metrics, remediation procedures, and service credit mechanisms. The agreement provides both parties with clarity on service expectations, measurement criteria, and consequences of service failures, while ensuring compliance with relevant UK legislation including data protection and industry-specific regulations.

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

1. Parties: Identification and details of the service provider and customer

2. Background: Context of the agreement and brief description of services to be provided

3. Definitions: Key terms used throughout the agreement

4. Services Description: Detailed outline of services to be provided

5. Service Levels: Specific performance metrics, KPIs, and measurement criteria

6. Performance Monitoring: Methods and frequency of service level monitoring and reporting

7. Service Credits: Compensation mechanism for service level failures

8. Term and Termination: Duration of agreement and termination provisions

9. Charges and Payment: Pricing, payment terms, and invoicing procedures

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

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

2. Transition Services: Process for service implementation or transfer - needed when complex service transition is required

3. Security Requirements: Specific security measures and compliance requirements - essential when handling sensitive data or systems

4. Business Continuity: Disaster recovery and service continuation procedures - required for critical services or regulated industries

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

1. Service Description Schedule: Detailed technical specifications of services

2. Service Level Metrics Schedule: Detailed KPIs and measurement methodologies

3. Pricing Schedule: Detailed pricing structure and calculations

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

5. Security Schedule: Detailed security requirements and procedures

6. Business Continuity Plan: Detailed disaster recovery procedures

7. Exit Plan: Service termination and transition procedures

Authors

Alex Denne

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

Jurisdiction

England and Wales

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions












































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Industries

Supply of Goods and Services Act 1982: Core commercial legislation governing the supply of goods and services, setting out implied terms and obligations in service contracts

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of a contract to which they are not a direct party

Late Payment of Commercial Debts (Interest) Act 1998: Legislation addressing payment terms and statutory interest on late commercial payments

Unfair Contract Terms Act 1977: Controls the use of exclusion and limitation clauses in contracts, determining which terms may be unfair or unenforceable

UK General Data Protection Regulation (UK GDPR): Post-Brexit data protection regulation governing how personal data must be handled, processed, and protected

Data Protection Act 2018: UK's implementation of data protection laws, working alongside UK GDPR to regulate personal data processing

Privacy and Electronic Communications Regulations (PECR): Specific rules for electronic communications, including electronic marketing and cookies

Computer Misuse Act 1990: Legislation concerning unauthorized access to computer systems and data security

Electronic Communications Act 2000: Framework for electronic signatures and electronic communications in contracts

Electronic Commerce (EC Directive) Regulations 2002: Regulations governing electronic commerce and online business practices

Employment Rights Act 1996: Core employment legislation relevant when staff transfers might be involved in service provision

TUPE Regulations 2006: Regulations protecting employees' rights when business ownership or service provision changes

Financial Services and Markets Act 2000: Regulatory framework for financial services, relevant if the SLA involves financial services

Network and Information Systems Regulations 2018: Cybersecurity regulations for essential services and critical infrastructure

Trade Secrets Regulations 2018: Protection of confidential business information and trade secrets

Consumer Rights Act 2015: Consumer protection legislation, relevant if end-users of services are consumers

Competition Act 1998: Legislation preventing anti-competitive practices and abuse of dominant market position

Modern Slavery Act 2015: Requirements for larger organizations regarding modern slavery and human trafficking prevention

Environment Act 2021: Environmental protection legislation that may affect service delivery and compliance requirements

Climate Change Act 2008: Framework for reducing greenhouse gas emissions, relevant for environmental compliance in service delivery

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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