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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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
- Set the availability target and define what counts as Downtime.
- Limit scheduled maintenance and require advance notice.
- Set credit tiers and decide whether credits are automatic.
- Set response times for each severity level.
- 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.
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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.