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LSDefine

Simple English definitions for legal terms

hands-off agreement

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A quick definition of hands-off agreement:

A hands-off agreement is a rule that an employer and a former employee agree to follow. It says that the employee cannot use what they learned while working for the employer to take away customers or business from the employer.

A more thorough explanation:

A hands-off agreement is a type of contract between an employer and a former employee. This agreement prevents the employee from using any information they learned during their employment to take customers away from their former employer.

For example, let's say that John works for a software company. He has access to all of the company's customer information, including their contact details and purchasing history. If John were to leave the company and start his own software business, he could use this information to try and steal customers away from his former employer. However, if John signed a hands-off agreement, he would be legally bound to not use this information to compete with his former employer.

Another example could be a salesperson who leaves their job at a car dealership. If they signed a hands-off agreement, they would not be able to use any customer information they obtained while working at the dealership to try and sell cars to those customers at a different dealership.

Overall, a hands-off agreement is a way for employers to protect their business interests and prevent former employees from using confidential information to compete with them.

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