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How Do Service Level Agreements Work?

A service level agreement is a formal document between a service provider and a user of that service.


We will connect you with the best and highly rated lawyers.

Step 1


The lawyer will prepare and deliver an initial draft in four days

Step 2


We will allow you to make two iterations to the agreement at no extra cost!

Step 3

What Is a Service Level Agreement (SLA)? - an Overview

An SLA is an arrangement between two parties i.e. the provider of the service and the person making use of that service. It includes a set of deliverable promises that one is expected to provide to another under the terms of the agreement. Commonly, an SLA is seen between a company (service provider) and clients.

An SLA is written after careful judgement and assessments. An ideal SLA must define the statement of objectives, scope of services, service provider and customer responsibilities, performance metrics, penalties for contract breach, etc. There is a need for the SLA to be precise and should cater to the wants and requirements of the provider and the user. Hence, it is necessary that such agreements are drafted under the guidance of organisations such as Vakilsearch. Vakilsearch houses trained experts who will provide you with the exact guidance you need. Read on to find out more about SLAs.

Benefits of SLA

  • An SLA clarifies the scope and extent up to which the service provider can provide services and utilities. This removes the chance of unrealistic expectations.
  • An SLA acts as a document of proof for the person using the services as it elaborates the promised services in detail.
  • The SLA acts as a medium for the customers to show their grievances as it lists down the procedure of providing feedback and complaints.
  • AN SLA is an excellent mode of improving customer support.
  • SLA facilitates communication between a company and a client. This makes deals more transparent.

What Must an SLA Include?

  • Agreement Overview- This method has a primary agreement, including the parties including, the initial date and a general description of the services provided.
  • Description of Services- The SLA requires accurate information of each service offered, under all reasonable circumstances, with the turnaround times included. Service descriptions should describe how the service is performed, whether maintenance service is provided, what the hours of service are, where dependencies subsist, an outline of the methods and a list of every technology and application used.
  • Exclusions- Distinct services that are not implemented should also be built to avoid confusion and eliminate room for ideas from multiple parties.
  • Service Performance- Performance analysis metrics and performance levels are marked. The client and service provider should accept a list of all the metrics they will use to estimate the service levels of the provider.
  • Redressing-Compensation- or payment should be defined if the provider cannot properly fulfil their SLA.
  • Stakeholders- It clearly defines the parties involved in the agreement and establishes their responsibilities.
  • Security- All security actions that will be practised by the service provider are specified. Typically, this comprises the drafting and agreement on anti-poaching, IT security, and non-disclosure agreements.
  • Risk Management and Disaster Recovery- Risk management processes and a disaster recovery plan are established and communicated clearly.
  • Service Tracking and Reporting- This section defines the reporting structure, tracking intervals, and the stakeholders involved in the agreement.
  • Periodic Report and Change Processes- The SLA and all identified key production indicators should be constantly evaluated. This process is explained as well as a suitable process for making changes.
  • Termination Process- The SLA should define the provisions under which the agreement can be completed or will expire. The notice period from both sides should also be verified.
  • Signatures- Eventually, all stakeholders and approved members from both parties must approve the document to show their approval of every detail and process.

Documents Required

  • Statements of parties: An SLA should include a statement and description of all the parties involved in the agreement.
  • Purpose of SLA: This includes the objective and the main subject matter of the SLA. It is a statement to see what the SLA is set out to do.
  • List of services
  • Description of the procedure of service: This is a detailed explanation as to how the service will be carried out in order to deliver the promises made under the SLA.

Our Procedure

After taking up your request to draft an SLA, our lawyers will reach out to you and gather all the relevant details. If there are any queries from our end, our lawyers may contact you after for the same. The initial draft will then be sent to you in 2-4 business days. We will also allow up to two rounds of iterations at no extra cost. Here is a brief as to how we carry out the procedure.

  • Define what the agreement involves
  • Write down a category from which your services fall into
  • Write down the purpose of the agreement
  • Note the goal of the agreement
  • Specify the objectives of the agreement
  • Certify how long the SLA will last
  • Confirm performance review protocols
  • Create a program of services to be provided
  • Describe services to be supplied in detail
  • Note the service provider’s requirements
  • Note the customer’s requirements
  • Email the customer regarding their requirements
  • Get approval from the customer requirements
  • Confirm the ways to get in contact
  • Double-check the SLA draft
  • Make the service level agreement format and email the copy of the approved SLA to the customer.

Why Vakilsearch?

Drafting an appropriate SLA agreement is necessary. A poorly drafted SLA agreement is detrimental as it can affect the relationship between the provider and the customer. Hence it is important to seek guidance from legal experts. We at Vakilsearch will always keep your interests in mind. We also allow up to two rounds of iterations with no extra cost. If there are changes that need to be made, our lawyers will do that for you. With the help of Vakilsearch, we will give you the best experience as we house experienced professionals with in-depth technical knowledge who will guide you at every step of the way. With service standards that are client-centred, reliable, and ethical, we will always be here to support you.

Note: For every issue or concern you may have, our experts will assess your situation and advise you on the best course of action.

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