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A court may allow a plaintiff to voluntarily withdraw from the suit through a Rule 41(a) dismissal without prejudice if the plaintiff would suffer hardship from continuing the suit. Also, under Rule 37(b)(2), a court may dismiss without prejudice to sanction a party acting in bad faith.
?With prejudice? means that you cannot re-file your case ever. ?Without prejudice? means that you can re-file your case at a later date (as long as you are still within the statute of limitations).
Whereas a case that is dismissed ?with prejudice? is dismissed permanently, a case that is dismissed ?without prejudice? is only dismissed temporarily. This temporary dismissal means that the plaintiff is allowed to re-file charges, alter the claim, or bring the case to another court.
The traditional meaning of 'without prejudice' it is to allow communications between parties without worrying that those communications, like letters or emails, will be used in court against the writer. However, it's a term often misused by lawyers. It should be used to preface settlement discussions.
For example, an employer might admit in a without prejudice communication that it had failed to carry out certain procedures which might otherwise render a dismissal unfair, but the employee would normally not be able to show that admission to an Employment Tribunal to try and prove their claim.