It is common for employers to use ‘without prejudice’ correspondence when negotiating with an employee on the termination of their employment. But what happens if that correspondence includes information the employer later wants to rely on? In the case of Meaker v Cyxtera Technology UK Limited (CTUK), the Employment Appeal Tribunal (EAT) found that a ‘without prejudice’ letter from an employer offering a settlement agreement also amounted to an effective dismissal letter.
Mr Meaker was employed by CTUK in a heavy manual night role. Following injuries to his back and an extended time off of work, it was agreed that the limitations on Mr Meaker’s ability to do heavy manual work were likely to be permanent. CTUK indicated that it was considering terminating Mr Meaker’s employment, and the possibility of a settlement agreement was raised. On 5 February 2020 Mr Meaker received a ‘without prejudice’ letter stating that it had been agreed there would be a mutual termination of his employment. It went on to state that his employment would terminate on 7 February 2020, he would be paid up to that date, the amount of holiday pay and the payment in lieu of notice that he would receive, and that he would be sent his P45. The letter also offered a further ex gratia payment, conditional on him signing the enclosed draft...
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