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In this article Redmans employment law solicitor Chris Hadrill examines the circumstances in which without prejudice settlement negotiations can be admissible as evidence in Employment Tribunal proceedings.

The ‘without prejudice’ rule generally prevents oral or written statements made in a genuine attempt to settle an existing dispute from being put before a court or tribunal as evidence of an admission adverse to the interests of the party that made the statement. It is a well-established (and useful) rule that operates in practice to allow parties to be full and frank in correspondence about factual and/or legal matters, with the principal aim of encouraging informed settlement of disputes. However, there are some circumstances in which there is an exception to this rule and communications which would otherwise be protected under without prejudice privilege can be rendered admissible in legal proceedings. These exceptions apply in the following circumstances:

  1. Where there is not yet a dispute between the parties
  2. Where all parties agree to waive privilege
  3. Where there is ‘unambiguous impropriety’ by one or more parties

We’ll address these exceptions in their relevant order below (please note that these examples are not exhaustive)

Lack of a dispute

The without prejudice rule will not apply where the parties are not yet in dispute, or where the parties are in dispute but the correspondence or discussions merely set out the parties’ respective positions in that dispute or criticise the other party’s position.

Waiver of privilege

It is possible for parties to waive privilege in relation to without prejudice correspondence or negotiations, but only when both (or all) parties to such correspondence expressly and unequivocally waive privilege. Examples of such waivers include the cases of:

  • Brunel University and another v Vaseghi and another [2007] EWCA Civ 482 – the Court of Appeal held that the parties had waived privilege with regards to some without prejudice communications which were considered as part of an employee’s grievance as the employer had attached a copy of the grievance report referring to such communications to its ET3
  • Somatra Ltd v Sinclair Roche & Temperley [2000] EWCA Civ 229 – the Court of Appeal held that parties can jointly agree to waive privilege but, where the parties do so, any communication waived will be be admissible in its entirety, including any admissions made in it

Unambiguous impropriety

The without prejudice rule must not be used as a cloak for perjury, blackmail or other ‘unambiguous impropriety’ (Unilever v Procter & Gamble Company [2000] 1 WLR 2436). In the leading case of BNP Paribas v Mezzotero [2004] IRLR 508 it was suggested that unambiguous evidence of discrimination in without prejudice communications may also lead such communications to having its protected communications label removed, and in Brunel University & another v Vaseghi & Webster [2007] 482 the Court of Appeal suggested that the need to establish the truth in discrimination claims could outweigh the protection otherwise granted by without prejudice communications. This was, at the time, regarded as both a decision which potentially aided the interests of justice (in allowing unambiguous evidence of discrimination which would otherwise be inadmissible from being put before the court) and also one which could potentially cause headaches for parties attempting to be full and frank in their attempts to settle disputes, as a clear consequence of this ruling could be that parties ‘combed’ through without prejudice correspondence in order to establish an inference of discrimination and therefore render such correspondence admissible.

In Woodward v Santander UK plc UKEAT/0250/09 the Employment Appeal Tribunal partially closed the door on the new ‘exception’ of discrimination, holding that one party merely drawing attention to without prejudice communications from which an inference of discrimination could be drawn was not enough to remove the protection that such communication would otherwise enjoy; in order to remove without prejudice protection from a communication the evidence of discrimination must be unambiguous in nature. In practice, it’s unlikely that there are going to be many examples of where there is unambiguous evidence of discrimination within a communication which would otherwise enjoy without prejudice protection.

 

About

Redmans Employment Team deal with employment matters for both employers and employees, including drafting employment contracts and policies, advising employers and employees on compromise agreements, handling day-to-day HR issues, advising on restructures, and handling Employment Tribunal cases for both employers and employees Call 020 3397 3603 to speak to one of the members of our employment team or email us on enquiries@redmans.co.uk. Redmans have offices in Richmond, Chiswick, Hammersmith, Fulham, Kingston, Wimbledon, Ealing, Kings Cross and Marylebone (meetings strictly by appointment only).

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Excellent service. It was a pleasure to work with Chris H, who is brilliant at what he does and very efficient. Their Senior Associate Rana T. is also very knowledgeable and resolves any queries speedily and efficiently. My issue could unfortunately not be resolved, but that was due to my employer and not the firm. Redmans however did all they could. I would definitely recommend them.

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Chris Hadrill kept me sane during the negotiations with my employer. He was courteous professional and he cared about doing the best he could for me. I will use Redmans again if ever I need an employment solicitor. Excellent service.

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Awesome services. Professionals at their best .

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Thanks for the advice and for negotiating a good outcome. Good to have the support at a very stressful time

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