Service level agreement in the Netherlands

WHAT IS A SERVICE LEVEL AGREEMENT?

A service level agreement in the Netherlands (SLA) is often used in the IT industry to define which services will be provided by a party and what standards and levels (“levels”) are required to provide that service. However, the conclusion of a service level agreement can also be beneficial in other areas. In the following, we explain the most important features of an SLA and what you should consider when concluding a service level agreement.

CREATE A SERVICE LEVEL AGREEMENT

In general, parties agree on Service Level Agreements in the Netherlands (SLAs) to define how a certain service will be provided by one party to the other. In particular, the quality of the service to be provided is agreed. Service level management, on the other hand, is concerne

with monitoring and reporting on the so-called service levels. It ensures that the service levels within the SLAs are monitored and that appropriate measures can be taken if they are not met.

If the services provided do not meet a certain quality condition, they must be improved. Since the quality requirements for the services are defined in advance of an agreement, it is easy to check with an SLA whether they are fulfilled. Therefore, it is recommended to agree on a service level agreement in writing. Based on an SLA, a cost estimate can also be made so that it is known in advance how much the service will cost. The amount of the costs depends on the type of services and the way they are provided. An SLA is also suitable for determining the costs of existing services and realising cost savings if necessary.

WHEN DOES A ‘SLA’ MAKE SENSE?

There is no fixed list of services for which you must conclude an SLA. In principle, they can be drawn up for all types. However, it is important that an SLA is specifically tailored to your company or service. An SLA is particularly suitable for services such as ICT, monitoring, facility services or mail delivery. Are you unsure whether a Service Level Agreement is suitable for your planned service? Our English-speaking lawyers at MAAK Advocaten in Amsterdam will be happy to help you and advise you on which agreements are suitable for your industry.

THE TERMINATION OF A SERVICE LEVEL AGREEMENT IN THE NETHERLANDS

A Service Level Agreement is an agreement between the client and the service provider on services to be provided. The termination of a service level agreement can be subject to both legal and contractual rules. Please be well informed about this by a Dutch contract lawyer. In some cases, damages may be payable in addition to termination, or termination may not be legally valid. You should be well informed about this by a Dutch contract lawyer.

THE CONCEPT OF SERVICE IN A SERVICE LEVEL AGREEMENT

The key word in service level agreement is the concept of service – or in other words – service. A SLA therefore refers to services and not products. Product specifications and delivery requirements are handled through other so-called procurement agreements. So the service level agreement is not about achieving a certain goal, but more about the quality and execution of a certain service.

WHAT YOU SHOULD LOOK FOR IN A SERVICE LEVEL AGREEMENT

SLAs must contain clearly defined service levels. These levels must be measurable and relevant to the effective performance of the service provider. With well-defined service levels, it is also easier for service level management to check the levels in the contract and compare them with the actual performance of the service provider.

In addition, pay attention to whether the party from whom you obtain your services is itself dependent on third parties. For example, the service provider may not be able to carry out its work because another party fails to do so. So you should have clear agreements about what to do in such situations and exactly which parties are involved.

DUTCH LAWYER SPECIALISING IN CONTRACT LAW

Do you have questions about Dutch contract law or do you need specific legal advice in the Netherlands on the service level agreement under Dutch law? Our experienced English-speaking specialist lawyers in Amsterdam will be happy to help you.

MAAK Advocaten – Dutch, English-speaking specialist lawyers in Amsterdam Phone: +31 (0)20 – 210 31 38 E-Mail: mail@anwaelte-niederlande.de Contact: Martin Krüger