SaaS & Commercial

Free Service Level Agreement (SLA) Template

A service level agreement defining uptime, measurement, exclusions, support response times, service credits, reporting and termination for chronic failure.

A service level agreement (SLA) sets measurable commitments for a service, such as uptime percentage and support response times, and what the customer gets if they are missed, usually service credits. A strong SLA also gives the customer a right to terminate for repeated failures.

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Template
SERVICE LEVEL AGREEMENT

This Service Level Agreement ("SLA") forms part of the [SERVICE AGREEMENT] dated [DATE] between [PROVIDER NAME] ("Provider") and [CUSTOMER NAME] ("Customer") for [SERVICE NAME] ("Service").

1. AVAILABILITY COMMITMENT. Provider will make the Service available [99.9]% of the time in each calendar month ("Availability Target").

2. MEASUREMENT. Availability = (total minutes in the month minus Downtime minutes) ÷ total minutes in the month × 100. "Downtime" means minutes when the Service's core functions [DEFINE, e.g., login and access to data] are unavailable to Customer, as measured by Provider's monitoring [at [NUMBER]-minute intervals from at least [2] locations]. Customer may also report Downtime with reasonable evidence, which Provider will consider in good faith.

3. EXCLUSIONS. Downtime does not include unavailability caused by: (a) scheduled maintenance of up to [4] hours per month, announced at least [72] hours in advance and performed [outside business hours in Customer's time zone]; (b) Customer's systems, internet connection or misuse; (c) events beyond Provider's reasonable control, excluding failures of Provider's own suppliers and hosting providers; or (d) suspension under the Service Agreement.

4. SERVICE CREDITS. If Availability falls below the Availability Target in a month, Customer will receive a credit against the next invoice:
| Monthly Availability | Credit (% of monthly fee for the affected Service) |
|---|---|
| Below [99.9]% | [10]% |
| Below [99.0]% | [25]% |
| Below [95.0]% | [50]% |
Provider will apply credits automatically based on its monitoring [or: Customer must request credits within [30] days of the end of the month].

5. SUPPORT RESPONSE TIMES.
| Severity | Definition | Response time | Target resolution / workaround |
|---|---|---|---|
| 1 Critical | Service unavailable or major data issue for all users | [30 minutes], 24/7 | [4 hours] |
| 2 High | Core feature impaired, no workaround | [2 business hours] | [1 business day] |
| 3 Medium | Feature impaired, workaround exists | [1 business day] | [5 business days] |
| 4 Low | Question or minor issue | [2 business days] | Next release |

6. INCIDENT COMMUNICATION AND REPORTING. Provider will maintain a status page, notify Customer of Severity 1 incidents within [1] hour, and provide a root-cause report within [5] business days. Provider will send a monthly availability report [on request].

7. CHRONIC FAILURE. If Availability falls below [99.0]% in any [2] months in a rolling [6]-month period, or below [95.0]% in any single month, Customer may terminate the affected Service on written notice within [30] days and receive a refund of prepaid fees for the remaining term, without penalty.

8. DATA BACKUP AND RECOVERY. Provider will back up Customer data at least [daily], with a recovery point objective of [24] hours and a recovery time objective of [8] hours, and test restoration at least [annually].

9. REMEDIES. Service credits are [Customer's sole remedy for failure to meet the Availability Target, except for the termination right in Section 7] [or: in addition to any other remedies under the Service Agreement].

10. CHANGES. Provider will not reduce these service levels during the current term.

PROVIDER: ____________________  Date: __________
CUSTOMER: ____________________  Date: __________

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This free template is provided by ClauseAudit for general informational purposes and is not legal advice. Have it reviewed before use. Replace all [BRACKETED] placeholders.

When to use this template

  • Buying SaaS, hosting, managed IT or any business-critical service.
  • Providing a service and wanting clear, measurable commitments.
  • Replacing a vague "commercially reasonable efforts" availability promise.

How to fill it in

  1. Set the availability target and define what counts as Downtime.
  2. Limit scheduled maintenance and require advance notice.
  3. Set credit tiers and decide whether credits are automatic.
  4. Set response times for each severity level.
  5. Add a chronic failure termination right and backup commitments.

Key clauses to check

Uptime percentage
99.9% allows about 43 minutes of downtime a month; 99% allows about 7 hours.
Exclusions
Broad exclusions can make the SLA meaningless; limit maintenance windows.
Service credits
Usually small; automatic credits are better than claim-based ones.
Chronic failure termination
The most valuable remedy for customers.
Backup and recovery
Recovery time and point objectives matter as much as uptime.

Frequently asked questions

What does 99.9% uptime mean?

About 43 minutes of allowed downtime per month, or roughly 8.8 hours per year.

What is a service credit?

A partial refund or discount on future invoices when the provider misses its SLA.

Can I cancel a contract for SLA failures?

Only if the SLA or agreement gives a termination right, which is why a chronic failure clause matters.

Want to check if a contract is fair before you sign?

If someone sent you a saas contract, don't guess. We flag risky clauses in plain English, tuned to your state, with a downloadable report and suggested-fix redline.

This free template is general information, not legal advice, and is no substitute for a qualified attorney. Laws vary by state; have it reviewed by a lawyer before you use or sign it.