Without Prejudice Letter Template & Generator
How to open settlement negotiations with your employer — what it needs to say, your rights, and a free generator — ready instantly.
← All Letter Templates & Generators · Employee · Last updated 18 August 2026 · Written and reviewed by Matt Thompson, founder of UK Work Rights
This is free rights guidance, not legal advice. For advice specific to your situation, see our About page or contact Citizens Advice.
If you need to open settlement negotiations with your employer, a written letter is the recommended first step — it creates a clear record and shows you're pursuing the matter formally. Below is what a strong without prejudice letter should include, plus a free tool to generate yours.
What this letter needs to cover
- State clearly it is written without prejudice
- Briefly summarise the dispute
- Make a settlement proposal
- State it is an attempt to resolve without tribunal
- Set a deadline for response
What "without prejudice" actually means and protects
A genuinely without prejudice communication, made as part of a real attempt to settle an existing dispute, generally can't be shown to a tribunal later if negotiations fail — this allows both sides to speak openly about settlement without those discussions being used against them if the matter proceeds to a hearing.
What to include before you send it
- Clear labelling as "without prejudice" at the top
- Confirmation of the existing dispute this relates to
- Your proposed settlement terms
- An invitation to discuss or negotiate further
Why this protection only applies in genuine circumstances
For without prejudice protection to actually apply, there needs to be a genuine, existing dispute at the time — simply writing "without prejudice" on a letter doesn't automatically protect it if there's no real dispute yet, or if the letter doesn't genuinely relate to settling one.
Frequently Asked Questions
Can I use "without prejudice" for a completely new issue with no prior dispute?
Generally no — this protection specifically applies to genuine settlement attempts around an existing dispute, not general correspondence with no underlying disagreement.
What's the difference between this and a formal settlement agreement?
A without prejudice letter opens or continues negotiation; a settlement agreement is the final, binding document once terms are actually agreed, which requires independent legal advice to be valid.
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