What is the Master Service Agreement (MSA)?

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What is the Master Service Agreement (MSA)?

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The Basics

A Master Service Agreement is a contract between two or more parties, in which they agree to the terms that are being used and will be used to govern current and future transactions and business conduct.

Why use a Master Service Agreement?

MSAs are useful because they allow the parties to plan for the future while also speeding up the ratification of future agreements. That’s because MSAs create a contract framework that establishes the foundation for all future actions.

Even better, an MSA allows for modifications as circumstances evolve by addressing only the specific deal at hand but maintaining the basic tenets that will govern all future contracts.

In this way, an MSA allows the parties to plan for the future and adapt to business landscape changes—highlighting the potential areas of conflict or concern. MSAs also eliminate the pressure of a deadline and give parties time to respond and adjust.

Finally, an MSA is best for long-term relationships that need space and security to grow and evolve. The flexibility afforded by an MSA can head off disputes and allow both parties to maintain their core relationship even as circumstances change, while also saving them time and money

Why does Lano use a Master Service Agreement?

Master Service Agreement is generally used when parties know that they would be working together in the future on the same or different projects. With the MSA in place, additional contracts do not need to be drawn and renegotiated. At Lano, we require the clients to sign an MSA to speed up the process of hiring compliantly and reduce the number of negotiations, while building trust and long-lasting relationships and enhancing the user experience.

Can I request changes in the Master Service Agreement?

At its core, the Master Service Agreement is an agreement between the parties. To request changes in the MSA, please add comments to the DocuSign document and tag Lano Software GmbH on it. This way, our team will let you know whether the changes are accepted or not.

Do I need to sign the Master Service Agreement every time I look to hire an employee?

No, you sign the Master Service Agreement only once as a client/user. As a signatory to the Master Service Agreement, you can hire as many employees as you need, in as many countries as you require by just adding a new schedule.

Anything else I will need to sign before I hire employees in different countries?

Yes, while the MSA is signed once, you may be required to sign different schedules to the Master Service Agreement, depending on our Employer of Record partner coverage and your business needs.

How do I know and comply with the local laws of the countries I am hiring in?

One of the requirements of an employer is to comply with local laws of the land where they are looking to hire. It is very common for an employer to not know the laws, rules, and regulations of different countries.

Lano shares a country guide or HR at a glance document with its clients for employees that are hired in different countries. This document contains relevant and important information about laws, rules, and regulations like minimum salary, annual leave, holidays, termination of employment, etc.

For specific queries or for an at-length understanding, Lano will put you in touch with an expert.

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