A without prejudice letter is a communication between the parties, made for the purpose of settling a dispute. 1. Making allegations or accusations.In your first without prejudice letter, be selective and keep some issues in reserve for the final negotiating stages. Are you in an employment law dispute with your employer and looking to reach a fair exit package deal? Without prejudice means without detriment to any existing right or claim. What is the point of the "without prejudice" rule? A without prejudice letter is a letter that is sent in an attempt to negotiate a settlement in a legal dispute.