Without prejudice letter no.4 in series: response from employer to employee's solicitor

This letter is a response from the employer’s lawyer regarding an exit settlement proposal from us. They agree to an ex-gratia £30,000 payment with accrued holiday and pay in lieu of 4 weeks’ notice but do not agree to re-payment of 5 months’ salary at 75% rate. Instead they offered for a reference to be agreed with the client’s manager. This is a continuation of a series of letters regarding a grievance and subsequent settlement negotiations. Letter no.5 can be accessed here.


From: [Company Lawyer]

Sent: [22nd September 2016] [15:31]

To: [Employee’s Lawyer]

Subject: Re: Without Prejudice Your Client [Employee]

In Strictest Confidence

Dear [Employee’s Lawyer],

Thanks for your time on the phone earlier.

As discussed I am unable to accept your offer.

However I can propose the following:

  1. An ex-gratia compensation payment of £30,000 as indicated in my email of [19th September 2016];
  2. Payment of accrued holiday pay (as discussed I will get an accurate figure for this – reflecting a small deduction for holiday days purchased but not, in the event fully paid for by your client)
  3. Pay in lieu of 4 weeks notice.
  4. Reference to be agreed between [Manager] and your client (bearing in mind [Manager] policy of providing factual information only in references).

This offer will remain open until [17:00] on [Friday 30th September] and is subject to contract

I look forward to hearing from you when you have had an opportunity to speak with your client.

Kind regards,

[Company Lawyer name and signature]

Next steps

Monaco Solicitors are happy to provide you with these letter templates and examples free of charge to aid you in your employment situation. If you would like professional legal assistance in your case, we are experts in employment law and only represent employees – never the employer.
If you would like to talk to an experienced employment solicitor about the details of your case, simply get in touch on 020 7717 5259 or apply for a apply for a free consultation. Our lawyers will be able to assess your situation and advise how we could help you improve your settlement package.
You can also use our free Settlement Agreement Calculator to help you understand how much your case could be worth.