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Service Level Agreement Between Two Companies for United Arab Emirates

Service Level Agreement Between Two Companies Template for United Arab Emirates

A Service Level Agreement (SLA) governed by UAE law that establishes and regulates the service delivery relationship between two companies. This agreement defines specific performance metrics, service standards, and mutual obligations while ensuring compliance with UAE federal laws and regulations. It includes detailed provisions for service delivery, monitoring, reporting, and remedies for service failures, all structured within the UAE legal framework. The document incorporates both mandatory requirements under UAE commercial law and practical commercial considerations necessary for effective service management.

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What is a Service Level Agreement Between Two Companies?

The Service Level Agreement Between Two Companies is a critical document used to establish and manage service delivery relationships in the UAE business environment. It is particularly relevant when one company provides ongoing services to another, requiring specific performance standards and measurable outcomes. The agreement must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and Federal Law No. 18 of 1993 (Commercial Transactions Law), while addressing practical aspects of service delivery such as KPIs, reporting requirements, and remedy mechanisms. This document is essential for businesses operating in both UAE mainland and free zones, providing a legally sound framework for service relationships while protecting both parties' interests through clear performance metrics and accountability measures.

What sections should be included in a Service Level Agreement Between Two Companies?

1. Parties: Identification and details of the service provider and service recipient companies

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Detailed definitions of technical terms, service-related terminology, and key concepts used throughout the agreement

4. Services Description: Detailed outline of services to be provided, including scope and exclusions

5. Service Levels: Specific performance metrics, KPIs, and minimum service levels to be maintained

6. Performance Monitoring: Methods and procedures for monitoring and reporting service performance

7. Service Credits and Penalties: Compensation mechanism for service level failures and calculation methods

8. Response and Resolution Times: Timeframes for addressing service issues and incidents

9. Responsibilities of Parties: Detailed obligations of both service provider and recipient

10. Payment Terms: Pricing, payment schedule, and related financial terms

11. Term and Termination: Duration of agreement, renewal terms, and termination conditions

12. Dispute Resolution: Process for handling disputes, including escalation procedures

13. Confidentiality: Protection of confidential information and trade secrets

14. Force Majeure: Provisions for unforeseen circumstances affecting service delivery

15. Governing Law and Jurisdiction: Specification of UAE law application and jurisdictional matters

What sections are optional to include in a Service Level Agreement Between Two Companies?

1. Data Protection and Privacy: Required when services involve handling personal or sensitive data

2. Disaster Recovery: Needed for critical services requiring business continuity planning

3. Security Requirements: Important for services involving IT systems or sensitive information

4. Change Management: Necessary for services that may require modifications during the contract term

5. Intellectual Property Rights: Required when services involve creation or use of intellectual property

6. Insurance Requirements: Important for high-risk services or regulatory compliance

7. Subcontracting: Needed when service provider may use third-party contractors

8. Environmental Compliance: Required for services with environmental impact

9. Staff and Personnel: Important when specific personnel or qualifications are crucial to service delivery

What schedules should be included in a Service Level Agreement Between Two Companies?

1. Schedule 1 - Service Specifications: Detailed technical specifications of services

2. Schedule 2 - Service Level Metrics: Detailed KPIs, measurement methods, and targets

3. Schedule 3 - Pricing and Payment Schedule: Detailed fee structure, rates, and payment terms

4. Schedule 4 - Escalation Matrix: Contact details and escalation procedures for various scenarios

5. Schedule 5 - Reporting Requirements: Templates and specifications for performance reports

6. Schedule 6 - Technical Requirements: Infrastructure and technical specifications required for service delivery

7. Appendix A - Service Credit Calculations: Detailed methodology for calculating service credits and penalties

8. Appendix B - Change Request Form: Standard template for requesting and documenting service changes

9. Appendix C - Incident Report Template: Standard format for reporting and documenting service incidents

Authors

Alex Denne

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

Publisher

Genie AI

Cost

Free to use

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