What Does “Without Prejudice” Mean?
In UK law, the phrase “without prejudice” is commonly used during settlement discussions. It protects written or verbal communications made in an attempt to resolve a dispute, ensuring they cannot be used as evidence in court or tribunal if negotiations break down.
This principle encourages open and honest dialogue between parties, especially in employment disputes, contract disagreements, and settlement agreements.
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Why Is “Without Prejudice” Important?
Encourages Negotiation: Both parties can speak freely, knowing their words won’t later be used against them.
Protects Settlement Talks: If you reject an offer, the employer or employee cannot later show that offer in court.
Supports Fair Resolutions: It creates a safer environment for compromise, helping disputes settle out of court.
When Can “Without Prejudice” Apply?
The protection only applies when:
There is a genuine dispute between the parties.
The communication is a genuine attempt to settle.
The document or discussion is clearly marked as “without prejudice.”
For example, in employment law, an employer may begin a without prejudice conversation when offering a settlement agreement to an employee.
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Exceptions to “Without Prejudice”
Not all communications are protected. Exceptions include:
Misrepresentation or fraud in negotiations.
Improper behaviour such as discrimination, blackmail, or undue pressure.
Where the communication does not relate to a genuine dispute.
Without Prejudice vs. “Without Prejudice Save as to Costs”
A related phrase is “without prejudice save as to costs.”
This means the communication cannot be used in court until the case is decided.
After judgment, it may be shown when arguing about who should pay legal costs.
Without Prejudice in Employment Settlement Agreements
In UK employment law, settlement agreements often start with a without prejudice meeting or letter.
Employers use it to propose a confidential exit for the employee.
Employees can negotiate terms (e.g., compensation, reference, non-disclosure).
Independent legal advice is required before signing, ensuring fairness.
Key Takeaways
Without prejudice protects settlement discussions from being used in court.
It only applies in genuine disputes and genuine attempts to resolve them.
Exceptions exist where there is misconduct or misrepresentation.
In employment law, it plays a major role in settlement agreements.
Contact Solidaire today to get professional advice on how a settlement agreement might affect your notice period and ensure you receive the best possible outcome.
