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Operational Level Agreement for Malaysia

Operational Level Agreement Template for Malaysia

This Operational Level Agreement template is designed for use under Malaysian law, providing a comprehensive framework for internal service delivery arrangements between departments within an organization. The document incorporates key requirements of Malaysian contract law while focusing on practical operational aspects such as service levels, performance metrics, and internal support procedures. It includes provisions for compliance with Malaysian data protection regulations, electronic commerce requirements, and relevant industry-specific standards, making it suitable for both traditional and digital service delivery arrangements between internal organizational units.

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What is a Operational Level Agreement?

This document template is designed for organizations operating in Malaysia that need to formalize internal service delivery arrangements through an Operational Level Agreement (OLA). It is particularly useful when departments need to establish clear service expectations, performance metrics, and operational procedures for internal support services. The template incorporates relevant Malaysian legal requirements while maintaining focus on practical operational aspects. It should be used when departments need to define specific service levels, response times, and quality standards for internal support services, especially in scenarios involving IT services, shared services, or cross-departmental support functions. The document helps ensure compliance with Malaysian contract law while providing clear guidelines for internal service delivery, performance measurement, and issue resolution.

What sections should be included in a Operational Level Agreement?

1. Parties: Identification of the internal departments/units entering into the agreement, including their roles as service provider and service recipient

2. Background: Context of the agreement, relationship between departments, and general purpose of the OLA

3. Definitions: Clear definitions of technical terms, service-related terminology, and key concepts used throughout the agreement

4. Scope of Services: Detailed description of services to be provided, including specific responsibilities and deliverables

5. Service Hours and Availability: Operating hours, service windows, and availability commitments

6. Performance Metrics: Specific, measurable KPIs and service level targets

7. Response and Resolution Times: Timeframes for responding to and resolving different categories of issues or requests

8. Roles and Responsibilities: Detailed breakdown of responsibilities for each party involved in service delivery

9. Communication and Reporting: Communication protocols, reporting requirements, and frequency of service reviews

10. Escalation Procedures: Clear hierarchy and process for escalating issues or concerns

11. Quality Assurance: Standards and procedures for maintaining service quality

12. Term and Termination: Duration of the agreement and conditions for modification or termination

What sections are optional to include in a Operational Level Agreement?

1. Business Continuity: Include when services are critical to business operations, outlining disaster recovery and continuity procedures

2. Security Requirements: Add when services involve sensitive data or systems, detailing security protocols and responsibilities

3. Training and Knowledge Transfer: Include when service delivery requires specific training or knowledge sharing between departments

4. Resource Management: Add when sharing or allocation of resources needs specific governance

5. Change Management: Include when services are subject to frequent changes or updates requiring formal procedures

6. Compliance Requirements: Add when services must meet specific regulatory or internal compliance standards

7. Cost Allocation: Include when internal charging or cost sharing mechanisms need to be defined

What schedules should be included in a Operational Level Agreement?

1. Service Specification Schedule: Detailed technical specifications of services and delivery methods

2. Performance Metrics Schedule: Detailed breakdown of KPIs, measurement methods, and reporting formats

3. Operating Procedures: Step-by-step procedures for routine operations and special circumstances

4. Contact Matrix: List of key contacts, roles, and contact information for both parties

5. Escalation Matrix: Detailed escalation levels, timeframes, and responsible persons

6. Service Request Catalog: Catalog of standard service requests with associated response times

7. Tools and Systems Access: List of systems, tools, and access requirements for service delivery

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Malaysia

Cost

Free to use

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