You are a senior HR manager employed by a telecommunications company with 250 em
ID: 382749 • Letter: Y
Question
You are a senior HR manager employed by a telecommunications company with 250 employees. You have been asked to develop, negotiate and document a service agreement between the human resources department (to be known in the agreement as Human Resources Central) and a new department which has been established to develop a new social networking product (to be known in the agreement as Project Flitter).
In your discussions with interested parties, you determine that the agreement should include:
Delivery of HR client services including:
preparation of job and position descriptions
advising on job classification levels
managing workplace changes
managing equal opportunities website
managing induction processes
managing training programs (approx. 30 per year delivered by specialised trainers)
managing promotions
administering the performance management system
processing travel claims
processing wage/ salary payments
administration of leave entitlements
administration of workers’ compensation processes
Delivery of recruitment services including:
preparation of recruitment advertisements (approx. 300 per year)
checking and paying accounts from recruitment agencies
receiving, recording and short-listing applications
handling applicants’ queries
convening selection committees
ensuring selection committees comply with policies and legal obligations
arranging interviews
checking references and obtaining referee reports
making selections in consultation with selection committees
obtaining approval for appointments
preparing offers
liaising with successful and unsuccessful candidates
obtaining visas for non–Australian appointees
Delivery of strategic planning services including:
planning for new broad banding of positions
reviewing reporting lines
undertaking a review of approximately 40 current HR policies
Prepare the service agreement, making sure you include appropriate performance standards and time frames for delivery of the services. Where necessary, provide further details about the services which are to be delivered. (1–2 pages)
It might help to review examples of other service agreements. There are many examples on the internet.
Explanation / Answer
This Service Agreement dated 16th December 2017 between Human Resources department here in after referred to as the Human Resources Central and
New Department, here in after referred to as the Department (together “Parties” and individually “party”)
Whereas Department has decided to support development of a new social networking product here in after referred to as Project Flitter.
Introduction
STATEMENT OF WORK
PAYMENT:
Department shall submit invoices for all applicable fees and expenses in accordance with the procedure specified in the applicable SOW or if no procedures are specified at the end of each month during which services have been provided under this agreement in considerable of the forgoing, completion of the project requirements to the satisfaction of Human Resource Capital.
During the term of this agreement all the service costs shall be either fixed or in accordance with the maximum hourly rates specified in the schedule below in this agreement and made apart here of rates. Rates shall be fixed for a period of 12 months from the effective date and shall be subject to review once every subsequent 12-month period during the term of the agreement.
Department shall be entitled to increase the rates after every 12 months subject to Human Resource Central review and approval. Department shall provide Human Resource Central with written notice of any proposed increase in the rates at least 60 days prior to the proposed effective date of any such increase, which increase shall not exceed 2% for services provided offshore.
All billing by Department will be by invoice monthly with payment terms of net 30 days. Each invoice shall contain such documentation and details of service costs and direct costs as Human Resource central may reasonably request from time to time.
CONFIDENTIAL INFORMATION
Department shall keep confidential and shall protect against disclosure of third parties any confidential information using the same degree of care, but no less than a reasonable degree of care, as department uses to protect its own confidential information. In performing the services, department shall always keep the confidential information secure and logically segregated from all other data.
TERM AND TERMINATION
This agreement will be in effect during a period commencing on the effective date and ending on the later of the date that is 1 year after the effective date or upon completion of all the tasks specified in an SOW executed prior to the expiry of 1 year from the effective date.
This agreement is renewable for additional periods upon agreement. Human Resource Central may terminate this agreement at any time and for any reason by giving department at least 10 business days prior written notice of termination. In the case of such termination without cause Human Resource shall pay the department all approved.
SCHEDULE -1
Services
Costs
Advertisements
$10 /per advertisement
Interviews + onboarding
$30/resource
Administration work
$1000/month
Training
$100/training
Services
Costs
Advertisements
$10 /per advertisement
Interviews + onboarding
$30/resource
Administration work
$1000/month
Training
$100/training
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