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Inter Company Services Agreement Template for England and Wales

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Key Requirements PROMPT example:

Inter Company Services Agreement

"Need an Inter Company Services Agreement for our UK parent company to provide IT support services to our German subsidiary, including data processing terms and staff secondment provisions, to be effective from March 2025."

Document background
The Inter Company Services Agreement is essential for formalizing service arrangements between related companies, ensuring clear accountability and compliance with UK regulations. This document is particularly important for corporate groups operating in England and Wales, as it helps establish clear commercial terms, maintain appropriate transfer pricing arrangements, and demonstrate proper corporate governance. The agreement typically includes detailed service descriptions, performance metrics, payment terms, and risk allocation provisions, while ensuring compliance with Companies Act 2006 and other relevant legislation.
Suggested Sections

1. Parties: Identification and details of the service provider and recipient companies

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Key terms used throughout the agreement

4. Services: Detailed description of services to be provided

5. Payment Terms: Fees, payment schedule, and invoicing arrangements

6. Service Levels: Performance standards and metrics

7. Term and Termination: Duration of agreement and termination provisions

8. Confidentiality: Protection of confidential information

9. Liability and Indemnification: Risk allocation between parties

10. Governing Law: Applicable law and jurisdiction

Optional Sections

1. Data Protection: GDPR compliance provisions for personal data processing

2. Staff Transfer: Terms for secondment or transfer of employees between companies

3. Intellectual Property: IP ownership and licensing provisions for created or used IP

4. Force Majeure: Provisions for handling unforeseeable circumstances affecting service delivery

5. Insurance: Required insurance coverage for high-risk services

Suggested Schedules

1. Service Description Schedule: Detailed specification of services to be provided

2. Charges Schedule: Detailed pricing and payment terms including rate cards

3. Service Levels Schedule: Detailed performance metrics and KPIs

4. Data Processing Schedule: Details of data processing activities and safeguards

5. Staff Transfer Schedule: Details of any staff transfers or secondments between companies

6. Change Control Procedure: Process for managing changes to services or agreement terms

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions










































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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Companies Act 2006: Primary legislation governing company law in the UK, affecting corporate structure, directors' duties, and company operations

Unfair Contract Terms Act 1977: Regulates contracts by limiting how far contracting parties can avoid liability through contract terms and notices

Contracts (Rights of Third Parties) Act 1999: Governs how third parties may enforce terms of contracts made between other parties

Employment Rights Act 1996: Key legislation protecting workers' rights, relevant if services involve staff transfers or secondments

Transfer of Undertakings (TUPE) Regulations 2006: Protects employees' rights when business transfers between companies or service provision changes

Agency Workers Regulations 2010: Ensures equal treatment for agency workers compared to directly recruited employees

UK General Data Protection Regulation: Post-Brexit data protection regulation governing how personal data must be handled and processed

Data Protection Act 2018: The UK's implementation of data protection laws, working alongside UK GDPR

Privacy and Electronic Communications Regulations: Specific rules for privacy of electronic communications, including electronic marketing

Value Added Tax Act 1994: Governs VAT obligations and requirements for services between companies

Corporation Tax Act 2009: Determines corporation tax treatment of inter-company transactions and services

Transfer Pricing Regulations: Ensures fair pricing of transactions between connected companies, particularly important for international groups

Copyright, Designs and Patents Act 1988: Protects intellectual property rights in creative works, designs, and innovations

Trade Marks Act 1994: Governs the protection and use of trademarks, relevant for brand and IP considerations

Competition Act 1998: Prohibits anti-competitive behavior and abuse of dominant market position

Enterprise Act 2002: Provides framework for competition law and market investigations

Financial Services and Markets Act 2000: Regulates financial services industry and markets, relevant if services involve regulated activities

Rome I Regulation: Determines which country's laws apply to contractual obligations in cross-border situations

Brussels Regime: Framework determining jurisdiction and enforcement of judgments in cross-border disputes

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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