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Shared Services Agreement Template for Australia

A comprehensive legal agreement governed by Australian law that establishes the framework for shared services arrangements between organizations or within corporate groups. The document outlines the provision of centralized services, including scope, service levels, pricing, governance structures, and operational procedures. It incorporates Australian regulatory requirements, including privacy laws, consumer protection, and corporate governance standards, while establishing clear mechanisms for service delivery, performance measurement, and dispute resolution.

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What is a Shared Services Agreement?

The Shared Services Agreement is essential for organizations seeking to optimize operations through centralized service delivery models in Australia. This document is particularly valuable for corporate groups consolidating support functions or separate entities entering into resource-sharing arrangements. It addresses key aspects such as service scope, performance standards, cost allocation, and governance frameworks, while ensuring compliance with Australian regulatory requirements including the Corporations Act 2001, Privacy Act 1988, and relevant state legislation. The agreement is commonly used when establishing new shared service centers, restructuring corporate service delivery, or formalizing existing shared service arrangements. It provides a robust legal framework for managing service relationships, risk allocation, and operational responsibilities.

What sections should be included in a Shared Services Agreement?

1. Parties: Identifies and defines the service provider and service recipient entities

2. Background: Explains the context and purpose of the shared services arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Services: Outlines the scope and nature of services to be provided

5. Service Standards: Defines the required quality levels and performance metrics

6. Charges and Payment: Details the fee structure, payment terms, and invoicing procedures

7. Governance and Management: Establishes management structure, reporting lines, and decision-making processes

8. Personnel: Addresses staffing, key personnel, and related obligations

9. Intellectual Property Rights: Defines ownership and usage rights of IP created or used in service delivery

10. Confidentiality: Specifies confidentiality obligations and information handling requirements

11. Data Protection and Privacy: Outlines obligations regarding data handling and privacy compliance

12. Liability and Indemnities: Sets out liability limitations and indemnification obligations

13. Term and Termination: Specifies agreement duration, renewal options, and termination rights

14. Force Majeure: Addresses rights and obligations during unexpected events beyond parties' control

15. Dispute Resolution: Establishes procedures for resolving disputes

16. General Provisions: Contains standard boilerplate clauses including governing law, notices, and assignment

What sections are optional to include in a Shared Services Agreement?

1. Transition Services: Include when initial setup or eventual transition of services requires specific provisions

2. Business Continuity: Add when service criticality requires specific disaster recovery and business continuity measures

3. Change Management: Include for complex services requiring formal processes for service modifications

4. Audit Rights: Add when regular auditing of service delivery or compliance is required

5. Security Requirements: Include when services involve sensitive systems or data access

6. Technology and Systems: Add when specific technical infrastructure or systems are crucial to service delivery

7. Third Party Rights: Include when third parties may need rights under the agreement

8. Anti-Bribery and Corruption: Add for international services or when required by corporate policies

9. Environmental Compliance: Include when services have environmental impacts or sustainability requirements

What schedules should be included in a Shared Services Agreement?

1. Schedule 1 - Service Descriptions: Detailed specifications of each service to be provided

2. Schedule 2 - Service Levels: Specific performance metrics, KPIs, and measurement methods

3. Schedule 3 - Charges: Detailed pricing, cost allocation, and charging mechanisms

4. Schedule 4 - Governance Procedures: Detailed procedures for service management and oversight

5. Schedule 5 - Key Personnel: Lists key staff and their roles/responsibilities

6. Schedule 6 - Technical Requirements: Technical specifications and systems requirements

7. Schedule 7 - Security Policies: Detailed security protocols and requirements

8. Schedule 8 - Business Continuity Plan: Detailed procedures for service continuity

9. Appendix A - Form of Change Order: Template for documenting service changes

10. Appendix B - Reports: Templates and specifications for required service reports

Authors

Alex Denne

Advisor @ GenieAI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Australia

Publisher

GenieAI

Document Type

Sector

Cost

Free to use

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