Free Service Agreement template (UK)

A Service Agreement, also known as a Contract for Services, is used to define the terms and conditions between a service provider and the party receiving the goods or services.

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Last Update 28 March 2025

Also Known As

Service Agreement

General Contract for Services

Services Contract

Contract for Services

Supply of Services Agreement

Service Agreement

Service Contract

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Table of Contents:

What is a Service Agreement?
How to write a Services Agreement/Contract template
Sample services agreement template
Service Agreement vs Employment Contract in UK
Service Agreement/Contract FAQs

What is a Service Agreement?

A Service Agreement is a legally binding contract between a service provider and a client that outlines the terms of the services being provided. This legal document establishes the rights, responsibilities, and expectations of both parties, preventing misunderstandings.

A Service Agreement contract typically applies to freelancers, contractors, and businesses providing specific services to clients. This differentiates it from an employment contract, which governs an employer-employee relationship.

A well-drafted Services Agreement template helps clarify:

Payment terms
Deadlines
Deliverables
Confidentiality clauses
Dispute resolution procedures

A clear and legally sound Contract for Services is essential for protecting both parties' interests.

Service Agreement types

There are different types of Service Agreements, each designed for specific business relationships. Have a look at the different types listed below and make sure you choose the right one for your situation.

Fixed-term Service Agreements

A fixed-term Service Agreement applies when services are provided for a specified period. This type of contract is common for projects with clear start and end dates, such as consulting assignments or temporary business support.

Ongoing Service Agreements

An ongoing services agreement is used when services are provided on a continuous basis, without a fixed end date. This is common in industries like IT support, cleaning services, or digital marketing retainers.

One-time Service Agreements

A one-time service contract is used when services are delivered as a single transaction. They are often used for services such as website design or legal consultancy. The contract specifies the scope of work and deadlines for completion.

Retainer Service Agreements

A retainer Contract for Services allows the client to pay for ongoing services in advance. These agreements often apply to legal advisors, consultants, or creative professionals who provide support over a set period.

How to write a Services Agreement/Contract template

A services contract template should be comprehensive yet clear to avoid ambiguity. Below are the key steps to drafting a Contract for Services template UK:

Identify the parties in the Service Agreement

Clearly state the legal names and contact details of both the service provider and the client. If one or both are businesses, include company registration details.

Define the scope of services

Describe the services to be provided in detail, including deliverables, deadlines, and any relevant conditions. This prevents possible future disputes over what is expected.

Set payment terms

Specify the payment amount, currency, due dates, invoicing process, and any penalties for late payments. Indicate whether the contract includes a deposit, milestone-based payments, or a fixed fee. You may also want to include info regarding reimbursement of expenses.

Outline obligations and responsibilities

Clarify what each party is responsible for. For example, a consultant may be required to deliver a report, while the client must provide necessary access or data.

Include confidentiality and data protection clauses

If sensitive information is involved, you should include confidentiality provisions and compliance with UK GDPR regulations in your Service Agreement.

Specify termination terms for the Contract of Service

Define the conditions under which either party can terminate the contract, notice periods required, and any penalties for early termination.

Address dispute resolution

Include procedures for handling disputes, such as mediation or arbitration, to avoid costly legal battles.

Sample services agreement template

Below is a sample Contract for Services template to help guide your drafting process. This template can be adjusted based on details specific to your situation:

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Service Agreement vs Employment Contract in UK

Understanding the difference between a Contract for Services vs Contract of Employment is important if you want to comply with UK employment laws. The differences between both legal documents are outlined below:

Contract for Services: A business agreement between a client and an independent contractor or service provider. No employment rights apply.
Contract of Employment: A formal agreement between an employer and an employee, granting employment rights such as sick pay, holiday entitlement, and pensions.

Service Agreement/Contract FAQs

Do you still have some questions about this type of document? Below are the answers to some of our clients' most frequently asked questions regarding Service Agreements.

Is a Service Agreement enforceable by law?

Yes, a Service Agreement is legally enforceable as long as it meets contract law requirements, including mutual consent, consideration (payment or service exchange), and clear terms.

If a dispute arises, courts may interpret the contract based on its wording and execution.

What needs to be included in a Service Agreement?

A legally sound services agreement template should include:

Names and details of both parties
Scope of services
Payment terms and conditions
Obligations and responsibilities
Confidentiality clauses
Termination and dispute resolution procedures
Any additional clauses relevant to the service

Can both parties make changes to the Service Agreement?

Yes, but any changes to a Service Agreement should be agreed upon in writing and signed by both parties.

Doing this guarantees transparency and prevents legal disputes. Changes should be documented in an addendum or a revised contract version signed by both parties.

You are only a few steps away from your own Service Agreement!

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Preview of your Service Agreement

GENERAL SERVICE AGREEMENT

THIS GENERAL SERVICE AGREEMENT (the "Agreement") is made and entered into as of the ________ day of ________________, ________.

THE CLIENT:
_________
of _________
(the "Client")

THE CONTRACTOR:
_________
of _________
(the "Contractor")

WHEREAS

A. The Client considers the Contractor to possess the necessary qualifications, experience, and abilities to provide the services described herein; and

B. The Contractor agrees to provide such services to the Client upon the terms and conditions set forth in this Agreement;

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants contained herein, the receipt and sufficiency of which are hereby acknowledged, the Client (hereinafter referred to as the "Client") and the Contractor (hereinafter referred to as the "Contractor", and collectively referred to as the "Parties"), agree as follows:

SERVICES

1. The Client hereby engages the Contractor to provide the following services to the Client (the "Services"):

a. _________ .

SCOPE OF SERVICES

2. The Services may also include such other tasks as may be mutually agreed upon in writing by the Parties.

TERM AND TERMINATION

3. The term of this Agreement (the "Term") shall commence on the date written above of this Agreement and shall continue until the Services are completed, subject to earlier termination as provided herein. The Term may be extended by mutual written agreement of the Parties.

PERFORMANCE

4. The Parties shall do all things reasonably necessary to give effect to this Agreement.

CURRENCY

5. Unless otherwise stated in this Agreement, all sums referred to herein are in pounds sterling (£).

PAYMENT

6. The Client shall be charged by the Contractor a flat fee of £_________ for the Services herein provided under this Agreement (the "Payment").

7. The Contractor shall provide the Client with an invoice when the Services are completed.

8. All Invoices shall be submitted by the Contractor to the Client upon receipt.

9. The Contractor shall be responsible for all income tax liabilities and National Insurance contributions (or similar taxes) relating to the Payment, and shall indemnify the Client against any such payments the Client is required to make.

10. The Contractor shall not be entitled to reimbursement for any expenses incurred in connection with the provision of the Services under this Agreement.

TRADE SECRETS

11. "Trade Secrets" means any secret and proprietary data, information, techniques, processes, tools, mechanisms, formulae, compounds, patterns, or test results relating to the Client's business, the disclosure of which could reasonably be expected to harm the Client and which provide the Client with a competitive advantage.

12. The Contractor shall not disclose, divulge, reveal, report, or use, for any purpose, any Trade Secrets obtained by the Contractor, except as authorised by the Client or as required by law. These obligations shall apply during the Term and shall survive the termination of this Agreement indefinitely.

OWNERSHIP OF INTELLECTUAL PROPERTY

13. All intellectual property and related materials, including any Trade Secrets, moral rights, goodwill, relevant registrations or applications for registration, and rights in any patent, copyright, trade mark, trade dress, industrial design, and trade name (the "Intellectual Property") developed or produced under this Agreement shall be the sole property of the Client. The Client's use of the Intellectual Property shall be unrestricted.

14. The Contractor shall not use the Intellectual Property for any purpose other than as expressly provided in this Agreement, except with the prior written consent of the Client. The Contractor shall be liable for any and all losses, costs, damages, and expenses arising from any unauthorised use of the Intellectual Property.

RETURN OF PROPERTY

15. The Contractor shall return to the Client all property, documents, records, and confidential information in the Contractor's possession or control that belong to the Client, on the expiry or termination of this Agreement.

CAPACITY/INDEPENDENT CONTRACTOR

16. When providing the Services under this Agreement, the Contractor expressly acts as an independent contractor and not as an employee. The Contractor and the Client acknowledge that this Agreement does not create a partnership or joint venture between them, but constitutes a contract for services.

RIGHT OF SUBSTITUTION

17. Unless otherwise stated in this Agreement, the Contractor may, at its sole discretion, engage a subcontractor to perform some or all of its obligations under this Agreement. The Client shall not engage any third parties to assist with the provision of the Services.

18. If the Contractor engages a subcontractor:

a. The Contractor shall be responsible for the subcontractor's fees, and the Payment shall remain payable by the Client to the Contractor.
b. For the purposes of the indemnity provisions of this Agreement, the subcontractor shall be deemed to be an agent of the Contractor.

AUTONOMY

19. Unless otherwise stated in this Agreement, the Contractor shall have sole control over the working time, methods, and decision-making related to the Services provided under this Agreement. Further, the Client shall allow the Contractor to work autonomously. Lastly, the Contractor shall be responsive to the Client's reasonable needs and concerns.

EQUIPMENT

20. Except as otherwise provided in this Agreement, the Contractor shall, at its own expense, provide all tools, machinery, equipment, raw materials, supplies, workwear, and any other items or parts necessary for the provision of the Services in accordance with this Agreement.

NO EXCLUSIVITY

21. The Parties acknowledge that this Agreement is non-exclusive and that either Party is free, both during and after the Term, to engage or contract with third parties for the provision of services similar to the Services.

NOTICE

22. All notices, requests, demands, or other communications required or permitted by this Agreement must be in writing and delivered to the Parties at the following addresses:

_________ , _________
_________ , _________

However, the Parties may send notifications to such other addresses as the Parties may from time to time notify the other.

INDEMNIFICATION

23. Each Party agrees to indemnify and hold harmless the other Party to the extent permitted by law, except to the extent paid in settlement from any applicable insurance policies, and its respective affiliates, officers, agents, employees, successors, and permitted assigns against any and all claims, losses, damages, liabilities, penalties, punitive damages, expenses, and reasonable legal fees and costs of any kind or amount whatsoever, which result from or arise out of any act or omission of the indemnifying party, its respective affiliates, officers, agents, employees, successors, and permitted assigns that occurs in connection with this Agreement. This indemnification survives the termination of this Agreement.

MODIFICATION OF AGREEMENT

24. No amendment or modification of this Agreement, nor any additional obligation assumed by either Party in connection with this Agreement, will be binding unless it is in writing and signed by each Party or their authorised representative.

TIME OF THE ESSENCE

25. Time is of the essence. No extension or variation of this Agreement will constitute a waiver of this provision.

ASSIGNMENT

26. The Contractor must not, whether voluntarily or by operation of law, assign or otherwise transfer its obligations under this Agreement without the Client's prior written consent.

ENTIRE AGREEMENT

27. The Parties agree that no representation, warranty, collateral agreement, or condition affects this Agreement except as expressly provided in it.

ENUREMENT

28. This Agreement will enure to the benefit of and be binding on the Parties and their respective heirs, executors, administrators, successors, and permitted assigns.

TITLES/HEADINGS

29. Headings are for convenience only and do not affect the interpretation of this Agreement.

GENDER

30. Words in the singular include the plural and vice versa. Words in the masculine include the feminine and vice versa.

GOVERNING LAW

31. This Agreement shall be governed by and construed under the laws of England.

SEVERABILITY

32. If any provision of this Agreement is held to be invalid or unenforceable, in whole or in part, the remaining provisions will remain valid and enforceable, with the invalid or unenforceable part severed from this Agreement.

WAIVER

33. No waiver by either Party of any breach, default, delay, or omission by the other Party of any provision of this Agreement will be construed as a waiver of any subsequent breach of the same or any other provision.

IN WITNESS WHEREOF the Parties have duly affixed their signatures under hand and seal on this ________ day of ________________ , ________ .

_____________________________
_________
Date: _________________________