service contract
noun [ C ]
ukus HR
a formal agreement between a company and an employee in a high position about their pay and conditions of employment (= rules under which they are employed):
The company has reduced service contracts for its executive directors to one year's notice.
She was on a two-year service contract.
COMMERCE
an agreement between a company and a customer, stating that the company will check and repair equipment for an agreed price during a fixed period of time:
Make sure you don't pay too much for an extended warranty or service contract.
COMMERCE
an agreement with a mobile phone company in which the customer pays a fixed amount each month:
New customers can terminate a service contract within the first three days without being charged.