Without Prejudice Letter: Free Template and What to Include

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.

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.

[Your Name]
[Your Address]
[Your Postcode]
[Your Telephone Number]
[Your Email Address]
[Name of Contact / HR Manager / Director]
[Company Name]
[Company Address]
[Company Postcode]
[Date]

WITHOUT PREJUDICE

Dear [Name of Contact / HR Manager / Director],

Subject: Settlement proposal about my employment

I am writing on a without prejudice basis to propose a way to end my employment with [Company Name] by agreement. As you know, there is an ongoing dispute about [briefly state the issue, e.g. my redundancy consultation / my grievance of [date]].

To avoid an Employment Tribunal claim and the time and cost of one, I am willing to settle this through a Settlement Agreement on these terms:
• A compensation payment of £[Amount, e.g. £10,000]. [The first £30,000 of a genuine termination payment can be paid tax-free.]
• My notice pay of [Number, e.g. 4] weeks paid as a lump sum, plus all accrued but untaken holiday up to the termination date.
• A neutral employment reference confirming my job title and dates of employment.
• A contribution of £[Amount, e.g. £500 plus VAT] towards my legal fees for independent advice on the agreement.

This offer is open until [Time] on [Date]. If we cannot reach agreement, I reserve the right to pursue my claims.

Yours sincerely,

[Your Signature]
[Your Printed Name]