What is Without Prejudice?

The ‘without prejudice’ rule means that statements made in discussions or communications as part of a genuine attempt to settle a dispute are private and cannot later be put before the Court as evidence of admissions against the interests of the party that made them. For example, a suggestion of a way to settle a dispute made by one party during mediation cannot later be used to indicate that the party had accepted responsibility or to frame any compensation or damages. ‘Without prejudice’ exists to encourage parties to negotiate an agreement rather than depend on the court to make a judgement, both to save cost and reduce pressure on Court. The contents of ‘without prejudice’ communications cannot be divulged to the Court unless it is “without prejudice save as to costs”, when it can then be divulged after the final hearing has been dealt with or the case has been settled.

In the context of an employment dispute, ‘without prejudice’ refers to private settlement discussions that should not be referred to in regular correspondence or to the Employment Tribunal. These can be to settle the dispute, or sometimes employers use this term to discuss possible exit packages with an employee.