contracts
Service Level Agreement Template and How to Draft One (2026)
What is a service level agreement, and when do you need one? A service level agreement (SLA) is the part of a services or SaaS contract that sets measurable standards for the service: how available it will be, how quickly the provider responds to problems, and what the customer gets if those standards are missed. You need one whenever a service is important enough that "we will do our best" is not good enough: hosting and SaaS, managed IT, support desks, logistics, facilities and maintenance. A good SLA turns a vague promise into numbers both sides can check. Below is a service level agreement template you can copy and adapt, followed by plain-English guidance on how to fill each section. An SLA usually sits inside or alongside a larger contract, such as a master service agreement, rather than standing completely alone. This is general information, not legal advice. For a high-value service, have a qualified lawyer review your final document. ## Service level agreement template ```
SERVICE LEVEL AGREEMENT (SLA) This SLA forms part of the [Master Service Agreement / Subscription Agreement] dated [DATE] between [PROVIDER NAME] ("Provider") and [CUSTOMER NAME] ("Customer"). 1. SERVICES COVERED This SLA applies to the following service(s): [DESCRIBE SERVICE]. Services not listed here are outside this SLA. 2. DEFINITIONS "Availability" means the percentage of time in a calendar month the Service is available for use, excluding Excluded Downtime. "Excluded Downtime" means scheduled maintenance notified [N] hours in advance, and downtime caused by the Customer or by events outside the Provider's reasonable control. "Incident" means an event that degrades or stops the Service. "Severity" levels are defined in clause 4. 3. AVAILABILITY TARGET The Provider will make the Service available at least [e.g. 99.9%] of the time each calendar month, measured as: Availability = (Total minutes - Downtime) / Total minutes x 100. 4. INCIDENT SEVERITY AND RESPONSE/RESOLUTION TARGETS
| Severity | Definition | Response | Resolution target |
|---|---|---|---|
| 1 Critical | Service down, no workaround | [15 min] | [4 hours] |
| 2 High | Major function impaired | [1 hour] | [1 business day] |
| 3 Medium | Minor function impaired | [4 hours] | [3 business days] |
| 4 Low | Question / cosmetic issue | [1 day] | [best efforts] |
| "Response" means the Provider acknowledges the Incident. "Resolution" | |||
| means the Service is restored or a workaround is in place. 5. SUPPORT HOURS | |||
| Support is available [e.g. 24x7 for Severity 1; business hours | |||
| (09:00-18:00 IST, Mon-Fri) for other severities], via [channels: | |||
| portal, email, phone]. 6. SERVICE CREDITS | |||
| If monthly Availability falls below the target, the Customer may claim | |||
| a credit against the next invoice: | |||
| Monthly Availability | Service credit | ||
| ------------------------ | ---------------- | ||
| Below [99.9%] to [99%] | [5%] | ||
| Below [99%] to [95%] | [10%] | ||
| Below [95%] | [25%] | ||
| Credits are the Customer's sole remedy for missed Availability, unless | |||
| stated otherwise in the main agreement. The Customer must claim a | |||
| credit within [N] days of the month end. 7. SCHEDULED MAINTENANCE | |||
| The Provider will give at least [N] hours' notice of scheduled | |||
| maintenance and, where possible, perform it during [a low-usage | |||
| window]. Scheduled maintenance within this limit is Excluded Downtime. 8. MEASUREMENT AND REPORTING | |||
| The Provider will measure performance using [named monitoring tools] | |||
| and provide a monthly report of Availability and Incident metrics | |||
| within [N] days of month end. 9. REMEDIES FOR PERSISTENT FAILURE | |||
| If the Provider misses the Availability target for [N] consecutive | |||
| months, the Customer may terminate the affected Service without | |||
| penalty, in addition to any credits. 10. REVIEW | |||
| The parties will review this SLA every [6 / 12] months and may adjust | |||
| targets by written agreement. |
Frequently asked questions
- What uptime does 99.9% actually allow?
- About 43 minutes of downtime per 30-day month. 99.99% allows roughly 4 minutes, and 99% allows about 7 hours. The extra nines get expensive fast to deliver, so pick a target you can actually measure and meet, because every month you fall short triggers a service credit.
- What is the difference between response time and resolution time?
- Response time is how long the provider takes to acknowledge an incident and start work. Resolution time is how long until the service is restored or a workaround is in place. A good SLA states both separately for each severity level, because a fast acknowledgement means little if the fix then takes days.
- Are service credits the customer's only remedy if an SLA is missed?
- Only if the contract says so. Many SLAs make credits the sole remedy for missed availability, which caps the customer's recourse. A customer should check how that interacts with the limitation of liability in the main agreement, and should ask for a right to terminate after repeated failures. How far a sole-remedy clause holds can vary by jurisdiction, so this is general information, not legal advice.
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