What Does 'Without Prejudice' Mean on a Severance Letter in Ontario?
Your severance letter is probably stamped 'without prejudice.' It is a legal label about settlement talks, not a threat, and it does not take away any of your rights.
Key takeaways
- 'Without prejudice' means the letter is a settlement communication.
- It generally cannot be used as evidence of an admission in court.
- It does not waive, reduce, or take away any of your rights.
- You can still negotiate, reject, or counter the offer.
- Only a signed release actually gives up your claims, not the label.
In this article
You open your termination package and the severance letter has 'without prejudice' printed across the top. It sounds ominous, like you are being warned or boxed in. You are not. It is a routine legal label about the nature of the conversation, and understanding it takes the fear out of the letter. Here is what it actually means.
✅Quick answer. 'Without prejudice' marks the letter as a settlement communication, which generally means it cannot later be used against either side as evidence of an admission in court. It is there so the employer can make an offer without that offer being treated as proof of what it thinks it owes. It does not waive your rights, it does not lock you into the offer, and you are free to negotiate, counter, or reject it. The only thing that actually gives up your claims is a signed release, not the label at the top.
What 'without prejudice' actually does
It signals that the communication is part of an attempt to settle. The law encourages settlement by protecting these exchanges: if talks break down and the matter goes to court, a 'without prejudice' offer generally cannot be shown to the judge as an admission. That protection runs both ways, which is why employers use it when floating a number. It is procedural housekeeping, not a statement about your entitlements.
What it does not do
- It does not reduce what you are owed. Your ESA and common-law entitlements are unchanged by the label.
- It does not bind you. You can reject the offer, ask for more, or take time to get advice.
- It does not give up your claims. Only signing the release attached to the package does that.
- It is not a deadline. Any pressure to sign quickly is a negotiating tactic, not a legal effect of the label.
What about 'with prejudice'?
Occasionally you will see 'with prejudice' on part of a letter, for example the portion confirming your statutory ESA minimums, which the employer must pay regardless. That part is meant to be relied on and is not just a settlement position. The 'without prejudice' portion is the negotiable offer on top. Either way, neither label changes your right to have the whole thing reviewed before you respond.
What should you do when you get one?
- 1.Do not treat the label as a threat or a deadline; it is standard wording.
- 2.Separate the guaranteed ESA minimum from the negotiable offer on top.
- 3.Do not sign the release until you know whether the offer is fair.
- 4.Get the number reviewed, since most first offers can be improved.
The label is not the important part of the letter. The number and the release are. Before you respond, see should you sign the severance offer and severance pay in Ontario, or get a severance review so you know whether to sign, counter, or push back.
Frequently asked questions
What does 'without prejudice' mean on a severance letter?
It marks the letter as a settlement communication, which generally cannot be used as evidence of an admission in court. It is routine legal wording and does not reduce your rights or lock you into the offer.
Does 'without prejudice' mean I have to accept the offer?
No. It has nothing to do with accepting. You can negotiate, counter, or reject the offer. Only signing the release in the package actually gives up your claims.
Does the label take away my severance rights?
No. Your ESA and common-law entitlements are unchanged by the label. It only affects whether the letter can be used as evidence in later litigation, not what you are owed.
What is the difference between with prejudice and without prejudice?
A 'with prejudice' portion, often the confirmation of your ESA minimums, is meant to be relied on and paid regardless. The 'without prejudice' portion is the negotiable settlement offer on top. Neither label stops you from getting the letter reviewed.
Priya Sharma
Legal Writer, Mirza Law
Priya Sharma is a legal writer at Mirza Law in Toronto. She writes about wrongful dismissal, workplace rights, and what Ontario employees can do when they are treated unfairly.
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