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Legal help with service level agreements (SLAs)

Drawing up a proper service agreement can mean the difference between things running smoothly and complete chaos when it comes to specifying your expectations of a third party.

Service agreements and how our solicitors can help

Also referred to as service level agreements (SLAs), they help you define exactly what is required from an individual or company you’re working, when by, and for how much.

Failing to keep to a service agreement could mean one party is in breach of contract, and legal action could be taken. Likewise, it might be that a disagreement arises during the life of a contract – at which point, solicitors experienced in goods and services disputes might be required.

Although service agreements are not always legally binding, they need to be as clear as possible so the services you agree upon are delivered – this is where our solicitors can help. Here at First4Lawyers, our business solicitors are specialists in this area of employment law.

What is a service agreement?

In business law, it sets out the rights and obligations of a person or company that has agreed to work for, or provide a service to, another business.

Unlike an employment contract, a service agreement is a more formal document. It focuses primarily on the performance and service quality a company expects from the other party and what will be exchanged in return for those services.

It can also cover any specifics around dates, equipment requirements, and even intellectual property.

Service agreements may also be drawn up to specifically outline a company director’s relationship with a business. This legislation imposes various duties upon service agreements, such as:

  • All service agreements longer than two years in length require shareholder consent.
  • The company must keep a copy of the service agreement at its registered office for at least one year following its expiry or termination.
  • A company must not make termination payments exceeding £200 without the permission from its shareholders.
  • Any terms which attempt to excuse a director from liability for default, negligence, breach of duty or breach of trust are void in law.

I need legal advice about service level agreements – how can First4Lawyers help?

It is important to ensure that the terms of the service agreements drawn up by your company have a strong legal basis, even though they may not be legally binding.

At First4Lawyers our experienced team of business solicitors can help with drawing up service agreements that protect the needs of your company.

We can also provide a review of your existing service agreements, to ensure compliance with current legislation.

Get in touch to speak to one of our legal advisors about your employment law needs.

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