Service Level Agreement Legal Status

While the exact terms of a service level agreement are likely to vary, each service level agreement should define the volume of work or scale of work, the expected quality, the speed or efficiency of the service provider, and the expected response to troubleshooting requirements. When all this is covered, the document effectively defines the customer`s expectations and the responsibilities of the service provider. It creates a guarantee for the customer while specifying the priorities of the service provider. Most service providers provide statistics, often via an online portal. Customers can verify that SLAs are being met and that they are entitled to service credits or other penalties in accordance with the SLA. Ideally, SLAs should be tailored to the technology or business goals of the engagement. Any important contract that is not subject to an associated SLA (reviewed by a lawyer) is open to intentional or accidental misinterpretations. The SLA protects both parties in the agreement. It is the measure of the degree of reliability for the provision of the defined service.

The service provider must therefore take an action – or reaction – to an event as part of the services provided to the customer. The dedicated SLA only addresses service levels. You then have two contracts to negotiate and sign – instead of one. This might be a better option if: service level affects the price…