Service Level Agreement

Service Level Agreement

This service level agreement is an output based agreement which explicitly defines what will be provided to the customer. Thus, it is an agreement between the service provider and the customer. It is a document that binds the service provider and the service user legally; it defines the nature, quality, and the range of the service to be provided to the customer.

Various Types of Service Level Agreement

  • Customer-Based Service Level Agreement that covers all the services used by individual groups of customers.
    For instance, a Service Level Agreement (SLA) is used between the Service Provider of Human Resource Services and the Human Resource Department of a company.
  • Service-Based Service Level Agreement between the service provider and a significant number of customers who use a specific service.
    For instance, a SLA between a telecommunications services provider and all of its clients using the provider’s particular service.
  • Multi-level Service Level Agreement is divided into tiers of different customer groups for the same services, in the same SLA:
    1. At Corporate Level, it covers all the concerns which are same for the entire organization.
    2. At Customer level, this covers all customer-specific issues. Service Level covering all specific service related issues.

Service Level Agreement is one of the elementary agreements between the service providers and the customers. In a Master Service Agreement, which sets out the standard terms and conditions and the SLA, the SLA provides greater details to the services provided.

Important key points in Service Level Agreement

  • Clear and well-defined information of the provided service along days and hours of the service;
  • States the problem that could raise and density of the problem, also mentioning the reacting time;
  • The implications of missing targets;
  • The SLA sets rights of the consumers and penalties in the event of non-performance that ensures a transparent bond between the customer and the service provider;
  • It also defines the service provider’s procedures, hierarchy and the expertise;
  • The SLA mentions the guaranteed areas where the service is to be provided and what is to be exempted;
  • What is the problem resolving method;
  • It lays out the promises made to and by the customers and well-stated indicators for the customer service to reduce the risk of customer disappointment and keep to track customer satisfaction levels.

Terms included in a Service Level Agreement

  • Interpretation of the Terms and Definitions used in the agreement
  • Service Legal Agreement Scope,
  • Duration of the Service Legal Agreement ,
  • Reliability,
  • Arrangements regarding the Customer support,
  • Point of Contact a communication matrix, and escalation,
  • Duties, obligations and Responsibilities mutually agreed.

Financial Provisions

  • Recurring fee payment
  • Monthly fee payment
  • One time charges
  • Reimbursements
  • Miscellaneous fee
  • Invoice Format
  • Payment Term period
  • Clause for Non-Disclosure of Confidential details,


  • Jurisdiction
  • Governing Law
  • Severability
  • Notice
  • Arbitration
  • Amendments And Waiver
  • Compliance With The Law
  • Warranties and Guarantees
  • Indemnity etc.

Benefits of Service Level Agreement

A Service Level Agreement is essential for both the service provider and the one getting that service. Both the parties follow the specifics very carefully so that there is no ambiguity.

The SLA provides all the services that the customer can expect and need. This ensures that the client knows what to expect in terms of service quality and specifying certain other conditions, making it a required report.

Steps involved in Service Level Agreement

  • A well competent attorney from our team will contact you to clarify the overall process and acknowledge the need for a Service Level Agreement.
  • Once the purposes of the Service Level agreement are apparent, the attorney shall draw up a sample Service Level Agreement appropriately.
  • The draft Service Level Agreement shall be sent to you for analysis.
  • The whole process takes between 3-4 working days.