There are very few legislative acts in Parliament that apply. However, if the person receiving the goods or services as a consumer, the Consumer Protection Act (CPA) applies. The CPA requires that ALS be in clear and understandable language and must not contain prohibited clauses. 4) The Tribunal found that ALS could not be interpreted other than a genuine agreement between the parties without an employment right being avoided. “In practice, any action in our courts to compel the provider to provide services, or even to require the client to pay, is a long and costly process. An ALS is a tool for building a good relationship and should not be seen as a weapon against the other party,” warns Giles. The clear and careful structuring of ALS is therefore essential. An ALS is a kind of contract (even if it is called an agreement) and contract law is therefore the most applicable right. Contract law is based primarily on the common law (such as case law). There are many current cases that are related to things like: SLAs are not unit contracts – each must be negotiated specifically to take into account the service, specific needs and requirements of the customer (such as regulation or legislation) and what level of service is pleasant for all parties.
SLAs must indicate what service a customer can expect, when, how, how many times downtime can be expected, and what corrective action can be taken if the provider does not deliver on one of its promises. In reality, they are often confusing and complicated documents that really do not help either the service providers or the client in managing the relationship, especially when things go wrong. SLAs are legally applicable, provided they have been properly created. The financial viability of prosecuting an offence in court is obviously an issue that each company must ask for and judge, based on what has been lost, in relation to the costs that lead the case to court. Companies may find themselves in a situation where it is necessary to enter into contracts with third parties for the monitoring and/or completion of projects or the provision of certain goods or services. To remain competent and relevant in its industry, it can be very useful to outsource work to meet a delivery deadline. It allows the principal contractor to obtain the exact nature of the work for the exact period. The principal contractor is therefore also not concerned about the legal obligations related to legal employment. Chetty commented: “The escalation clauses are essential for the IOC. CIOS are often extracted from the day-to-day engagement with IT service providers.
The IOC needs to know when service and performance issues need to get worse. Yes, they are theoretically enforceable in our courts, but in practice, any action in our courts to compel the claimant to do so is a long and costly process. Or even to force the customer to pay. The more efficient a service level contract is, the more likely it is to be applicable.