What does "without prejudice" mean in employment?

"Without prejudice" is a legal principle that protects the confidentiality of genuine settlement negotiations. When correspondence or conversations are marked (or understood to be) "without prejudice", the content of those communications cannot generally be used as evidence in tribunal or court proceedings. The rule exists to encourage parties to negotiate openly without fear that an admission or offer made in settlement talks will be used against them if negotiations break down. In employment, this rule commonly arises in the context of settlement agreement negotiations. Where there is an existing dispute, a meeting between employer and employee can be described as "without prejudice" if both parties understand it is aimed at settling that dispute. Separately, under Section 111A of the Employment Rights Act 1996, employers can have "protected conversations" with employees about ending employment even where no formal dispute yet exists — these conversations cannot be used in an ordinary unfair dismissal claim (though they can still be used in automatically unfair dismissal or discrimination claims). For "without prejudice" protection to apply, there must be a genuine dispute and a genuine attempt to resolve it. The label alone does not protect a communication that is not in fact a settlement negotiation. If you receive a "without prejudice" letter from your employer proposing a settlement, it is important to seek legal advice before responding.