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What is a Service Agreement?

A Service Agreement spells out exactly what services a provider will deliver to their client, along with key terms like payment, timelines, and quality standards. In Belgium, these contracts follow the Civil Code rules for service obligations and must clearly define both parties' rights and responsibilities.

Belgian service providers use these agreements to protect their interests while giving clients peace of mind. The document covers essential elements like confidentiality, liability limits, dispute resolution under Belgian law, and termination conditions. For regulated industries like financial services or healthcare, the agreement must also meet specific sector requirements set by authorities like the FSMA or FPS Health.

When should you use a Service Agreement?

Service Agreements become essential when you start providing professional services to clients in Belgium. Use them for any ongoing business relationship—from IT support and consulting to facility maintenance and professional services. They're particularly important when dealing with high-value services, complex deliverables, or regulated sectors like healthcare and financial services.

The right time to create a Service Agreement is before work begins. This protects both parties under Belgian law by clearly defining expectations, payment terms, and quality standards upfront. It's especially crucial when working with new clients, handling sensitive data, or providing services that could impact your client's business operations or regulatory compliance.

What are the different types of Service Agreement?

Who should typically use a Service Agreement?

  • Service Providers: Professional consultants, IT companies, maintenance firms, and other businesses that draft Service Agreements to outline their deliverables and protect their interests
  • Business Clients: Companies and organizations receiving services who review and negotiate terms to ensure alignment with their needs and compliance requirements
  • Legal Counsel: In-house or external lawyers who review and adapt agreements to meet Belgian legal standards and industry regulations
  • Project Managers: Oversee service delivery and ensure compliance with agreement terms
  • Compliance Officers: Monitor adherence to regulatory requirements, especially in sectors like finance, healthcare, or data protection

How do you write a Service Agreement?

  • Basic Details: Gather complete legal names, addresses, and registration numbers of all parties involved
  • Service Scope: Define exact services, deliverables, timelines, and quality standards in detail
  • Financial Terms: Document payment amounts, schedules, invoicing procedures, and any late payment penalties
  • Legal Requirements: Check Belgian contract law requirements and industry-specific regulations
  • Risk Management: Outline liability limits, insurance requirements, and termination conditions
  • Documentation: Collect relevant certificates, licenses, and supporting documents
  • Review Process: Use our platform to generate a compliant draft, then validate with key stakeholders

What should be included in a Service Agreement?

  • Party Details: Full legal names, addresses, VAT numbers, and authorized representatives of both service provider and client
  • Service Description: Clear, detailed scope of services, deliverables, and performance standards
  • Payment Terms: Fees, payment schedule, invoicing procedures, and late payment consequences under Belgian law
  • Duration & Termination: Contract period, renewal options, and conditions for ending the agreement
  • Data Protection: GDPR compliance measures and data handling procedures
  • Liability & Insurance: Risk allocation, coverage requirements, and limitation of liability clauses
  • Dispute Resolution: Belgian court jurisdiction, applicable law, and conflict resolution procedures

What's the difference between a Service Agreement and a Contractor Agreement?

A Service Agreement is often confused with a Contractor Agreement, but they serve distinct purposes in Belgian business law. While both involve providing services, their legal framework and implications differ significantly.

  • Employment Status: Service Agreements typically involve business-to-business relationships, while Contractor Agreements specifically address independent contractor relationships, affecting social security and tax obligations
  • Scope of Control: Service Agreements focus on deliverables and outcomes, whereas Contractor Agreements must carefully define work autonomy to avoid reclassification as employment
  • Duration Structure: Service Agreements often cover ongoing services with defined renewal terms, while Contractor Agreements usually relate to specific projects or fixed periods
  • Liability Framework: Service Agreements include broader service guarantees and performance metrics, while Contractor Agreements emphasize personal responsibility and professional liability

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