WA Resignation requested by employer under without prejudice

[Monkey]

Hello

I just received a letter from employer requesting my immediate resignation as director of the pty and employee.
This letter is titles "without prejudice save as to costs"

Is that legit to ask by writing such thing?
(Also letter states that resignation would be immediate which breaks Asic requirements of 28 days notice for director and my employment contract for resignation).
Also if i respond to that letter by "quoting their statement" and without the mention "without prejudice" is that something i will be able to bring to court later on should we reach that stage??

 

[Rob Legat - SBPL]

There are specific rules to using a without prejudice letter, but people seem to put it on any old thing. This does not sound like a valid use.

Asking an employee to resign has the same effect as terminating them. Unlawful and unfair dismissal rules may apply to your situation.

Directorships are not included in this.

 

[Monkey]

There are specific rules to using a without prejudice letter, but people seem to put it on any old thing. This does not sound like a valid use.

Asking an employee to resign has the same effect as terminating them. Unlawful and unfair dismissal rules may apply to your situation.

Directorships are not included in this.

Thanks Rob
You mean this document could be used under a unfair dismissal process as evidence?
Also should i take part of the negotiation and asking whatever money is necessary for me to proceed with their requests, or this could be seen later on as a weak point for my defence?

 

[Rod]

You mean this document could be used under a unfair dismissal process as evidence?

Yes.

Also should i take part of the negotiation and asking whatever money is necessary for me to proceed with their requests, or this could be seen later on as a weak point for my defence?

What is your preferred outcome?

There are a lot of facts missing like why they have asked you to resign, are you a shareholder, are there any other agreements in place etc, making it hard to offer an opinion.

BTW, I agree with Rob, non-legal people (and some legal people) don't properly understand the use of the phrase 'without prejudice' on correspondence. Unless this letter is part of other previous correspondence/discussions then it is unlikely to attract any privilege.

 

[Clancy]

That kind of letter is usually a hint they have got you doing something very wrong and are giving you the opportunity to avoid repercussions by resigning?

However, If you did something that may breach criminal law for example, resigning may not make it go away.

Without prejudice is so you can negotiate an out of court settlement and be able to stipulate things to get an agreement and not have those things used against you in court later on.

So a proper without prejudice letter requesting your resignation should also include some kind of offer of x amount if you agree to resign. with just a request to resign, the without prejudice is useless, its not illegal to request an employee to resign.