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Adapted from civil court practice, this is a way of trying to protect your position in the event that compensation is awarded against you at tribunal, although not a tactic that tribunals look very favourably on! Essentially, it means that unlike normal settlement discussions that are made on a 'without prejudice' basis and cannot therefore be referred to in the tribunal; a so-called Calderbank Letter is headed up: 'without prejudice save as to costs', which means that should a settlement not be reached, and the compensation awarded at tribunal is the same as or less than the amount informally offered, the Company could try to recover an element of costs from the employee. However, as employment tribunals aren't big fans of such things - we would advise not to hold your breath! Tribunals don't tend to like penalising employees - even when they have wasted everyone's time!
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