If you’re in conflict with your employer, you may be wondering how to push for a fair payout without going through the stress of a full employment tribunal. One powerful tool available under UK employment law is the “Without Prejudice” Letter.
A without prejudice letter allows you to make a settlement proposal in writing, without the risk that the contents will be used against you if negotiations fail. It can be an effective way to open the door to meaningful talks about compensation, helping you to secure a payout while avoiding lengthy disputes.
In this guide, we’ll explain what a without prejudice letter is, why it can lead to a payout, how to write one effectively, and the mistakes to avoid.
What Is a ‘Without Prejudice’ Letter?
A “without prejudice” letter is a written communication that you send to your employer during a workplace dispute. By marking it “without prejudice,” you’re signalling that:
- The letter is part of settlement negotiations.
- Its contents cannot usually be used as evidence in an employment tribunal if talks break down. There are limited exceptions, for example if the letter contained lies or blackmailed the employer.
This gives both you and your employer the freedom to be more open about potential settlement terms without worrying about weakening your legal position.
Note: Without prejudice letters are different from “protected conversations”. Without prejudice privilege only applies where a genuine dispute has already arisen, but applies to conversations about settling any of your potential legal claims. On the other hand, “protected conversations” can take place even if no dispute exists, but are more limited in their protection. They are only inadmissible in the Tribunal if they are discussions about ordinary unfair dismissal.
Tip: if you have any calls or meetings with your employer about settlement, it’s worth beginning the conversation by asking “Can we speak without prejudice?”. That way, you are clarifying that you intend the conversation to be about settlement and that the contents of your discussion will not be admissible in Tribunal.
Open vs. Without Prejudice Letters
- Open letter: Can be used in tribunal proceedings (e.g., a grievance letter outlining your complaint).
- Without prejudice letter: cannot usually be used in Tribunal proceedings - stays private as part of the settlement negotiations.
Why it matters in workplace disputes
Employers often prefer to settle workplace disputes quietly and quickly. A well-written without prejudice letter puts your case on the table and encourages your employer to consider making a payout, rather than risk the costs, time, and publicity of a tribunal.
Why a ‘Without Prejudice’ Letter Can Lead to a Payout
Sending a without prejudice letter can be a strategic way to encourage your employer to settle. Here’s why:
1. It opens the door to negotiation
By making a settlement proposal under the without prejudice rule, you give your employer a safe space to respond without fear that their reply will be used in tribunal proceedings. This can make them more willing to talk numbers.
2. It signals you’re serious
A structured, professional letter shows your employer that you understand your rights and are prepared to take the matter further if necessary. This often makes them more likely to consider an early payout.
3. It saves the employer time and money
Tribunals can be costly, time-consuming, and damaging to reputation. Many employers will prefer to pay a settlement now rather than risk higher legal costs, staff time, publicity and a potentially higher compensation payment later.
4. It can strengthen your position
By outlining the facts, the legal basis of your claim, and a reasonable settlement figure, you demonstrate that you have evidence and a credible case. This increases the pressure on your employer to resolve the dispute with a payout.
Key point: A without prejudice letter is more than just a formality — it’s a negotiation tool designed to move your employer towards making a financial offer.
When Should You Send a ‘Without Prejudice’ Letter?
Timing is crucial when it comes to sending a without prejudice letter. Send it too early and your employer may not take it seriously - plus the without prejudice protection only applies once a genuine dispute has arisen. Wait too long however and you might miss the chance to negotiate a fair payout.
Key situations where it can be effective:
- After raising a grievance
If you’ve submitted a formal grievance and the outcome doesn’t resolve the issue, a without prejudice letter can move things towards settlement. - When negotiations have stalled
If informal discussions with HR aren’t going anywhere, putting your position in writing shows you’re serious about seeking resolution. - Before starting tribunal proceedings
A letter sent before submitting an ET1 claim can encourage your employer to settle early, saving both sides the stress of litigation. If you’ve started Acas early conciliation, you can send this letter via Acas. - During tribunal proceedings
Even after you’ve lodged a claim, you can still use without prejudice letters to try to agree a payout before the hearing. At this point, you would typically send these via Acas. - Common dispute triggers
Unfair dismissal claims, discrimination or harassment cases, and unpaid wages are all disputes where without prejudice letters are often used.
Tip: The best time to send a without prejudice letter is when you’ve gathered enough evidence to support your case and are ready to make a realistic settlement proposal.
How to Write a ‘Without Prejudice’ Letter (Step by Step)
Writing a strong without prejudice letter can make the difference between being ignored and receiving a serious payout offer. Follow these steps:
Step 1: Use the right heading
- Clearly mark the top of your letter with “Without Prejudice”.
- This signals that the contents are intended for settlement discussions only.
Step 2: Introduce the dispute
- State briefly what the dispute is about (e.g., unfair dismissal, discrimination, unpaid wages).
- Keep it factual and professional.
Step 3: Outline your legal position
- Reference the basis of your potential claim (for example, under the Equality Act 2010 for discrimination, or the Employment Rights Act 1996 for unfair dismissal). Ideally you should refer to the specific law you are claiming under, for example “section 13 of the Equality Act 2010”.
- This shows you understand your rights and are prepared to act.
Step 4: Set out your case
- Summarise the key facts and documents that support your case.
- Avoid long stories — and note that you don’t need to attach documentary evidence to the without prejudice letter. You may want to rely upon the evidence in Tribunal, so it can be better to keep this on the “open” record.
Step 5: Propose a settlement
- State clearly what you’re seeking, whether it’s one key aspect such as a financial payout or an agreed reference, or a package of a few different terms and conditions.
- Be realistic — inflated demands can backfire.
Step 6: Keep it professional
- Avoid emotional or threatening language.
- Stick to clear, concise, respectful wording — this increases the chances of your letter being taken seriously.
Tip: Always keep a copy of your letter for your records.
Common Mistakes to Avoid
A without prejudice letter can be a powerful negotiation tool — but only if used correctly. Here are the most common mistakes employees make, and how to avoid them:
1. Using it when no dispute exists
The protection only applies if there is a genuine dispute between you and your employer. Sending a without prejudice letter out of the blue, without a clear issue, may not be protected.
2. Mixing open and without prejudice content
Never combine a grievance or formal complaint with settlement proposals in the same letter. Keep your open correspondence (e.g., grievances) separate from without prejudice communications.
3. Asking for unrealistic payouts
Demanding an unreasonably high sum may damage your credibility and close down negotiations. Instead, base your proposal on evidence and realistic compensation levels.
4. Failing to explain your legal position
Simply asking for money without explaining the basis of your claim weakens your case. Always link your request to relevant employment law rights.
5. Using emotional or threatening language
Employers are less likely to respond positively if your letter is angry or aggressive. Stay professional, clear, and focused on resolution.
Key takeaway: A strong without prejudice letter is factual, realistic, and professional — not emotional or exaggerated.
What Happens After You Send the Letter?
Once you’ve sent your without prejudice letter, the ball is in your employer’s court. Here are the most likely outcomes:
1. Acceptance
Your employer may agree to your proposal in full. If so, you’ll normally be asked to sign a settlement agreement, which formally records the terms. You will need to get independent legal advice if you are entering into a settlement agreement directly with your employer. Your employer will normally pay a contribution towards your legal fees. If you are negotiating via Acas, then you will not need independent legal advice.
2. Counter-offer
More commonly, your employer will respond with a different figure or alternative terms (for example, a smaller payout but with an agreed reference). This opens the door to negotiation.
3. Rejection
Sometimes, an employer will reject the proposal outright. If this happens, you still have the option of continuing with your tribunal claim or pursuing further negotiations.
4. No response
If you don’t receive a reply within the deadline you set, it would be a good idea to follow up once. If they still don’t engage, consider moving forward with your tribunal claim.
Tip: Don’t feel pressured to accept the first offer. Employers often start low, expecting you to negotiate.
Key point: Sending a without prejudice letter is the start of a negotiation process — not the end. You remain in control of whether to settle or continue with your claim.
How Valla Can Help You Draft a Strong Letter
Writing a without prejudice letter can feel daunting — but you don’t need to do it alone. At Valla, we provide the tools and support to help you get it right:
Ready-to-use templates
Our without prejudice letter template is designed specifically for UK employment disputes. It is structured to include the right legal language and formatting, while leaving space for you to personalise your details. You can also contact us at hello@valla.uk for template support.
Coaching support
If you’re unsure what settlement figure to request or how to present your case, our coaches can guide you through the process. They’ll help you identify your strongest arguments and avoid common pitfalls.
Document review
Already drafted a letter? We can review it to make sure it’s professional, legally sound, and persuasive — before you send it to your employer.
Step-by-step resources
From calculating a fair payout to navigating settlement negotiations, our platform offers clear guidance tailored to your situation.
Bottom line: With the right letter and support, you can put pressure on your employer to engage in meaningful settlement talks — and increase your chances of securing a payout.
Key Takeaways
- A without prejudice letter is a negotiation tool that allows you to propose settlement terms without weakening your tribunal claim.
- It can lead to a payout because it shows you’re serious, protects both sides in negotiations, and saves your employer time and money.
- Timing matters — send it after a grievance, when talks have stalled, or before/during tribunal proceedings.
- A strong letter is professional, evidence-based, and realistic about payout expectations.
- Avoid common mistakes like mixing open and without prejudice content, demanding inflated sums, or using emotional language.
- After sending, expect either acceptance, a counter-offer, or rejection — and be ready to negotiate.
- Tools, templates, and coaching from Valla can help you draft a persuasive letter and increase your chances of a fair payout.
FAQs
What is a without prejudice letter?
It’s a letter sent during a workplace dispute to propose settlement terms. Marking it “without prejudice” means it can’t usually be shown to a tribunal if negotiations fail.
Can a without prejudice letter trigger a payout?
Yes. A well-written letter can encourage your employer to settle by showing you have a strong case and are prepared to take the matter further if necessary.
When should I send a without prejudice letter?
You should consider sending one after raising a grievance, when talks have stalled, or before/during tribunal proceedings. Timing it right improves your chances of success.
How do I write a without prejudice letter?
Mark it “Without Prejudice,” outline your dispute, set out your legal position and evidence, propose a realistic settlement, and keep the tone professional.
Do I need a lawyer to send one?
Not necessarily. With the right template and support, you can write and send a without prejudice letter yourself. Services like Valla provide step-by-step guidance and coaching to help you. Note: as referred to earlier in this article, if you’re negotiating directly with your employer, then you will need to get independent legal advice before concluding a settlement agreement.
Conclusion
A without prejudice letter is one of the most effective ways to push for a settlement in a workplace dispute. By setting out your case professionally and proposing realistic terms, you can encourage your employer to engage in negotiation — and often secure a payout without going through the stress of a full tribunal.
The key is to get the timing, structure, and tone right. When used properly, a without prejudice letter shows your employer you’re serious, informed, and ready to act.
At Valla, we make this process simpler. Whether you need a ready-to-use without prejudice letter template, expert coaching support, or help reviewing your draft, our tools give you the confidence to take control of your case.
Explore our templates, learn more about settlement agreements, or book a session with a Valla coach today to maximise your chances of securing the payout you deserve.