Mutually Agreed Resignation Schemes (MARS) are becoming increasingly common, especially in the public sector, as employers look for flexible ways to manage workforce changes. This type of scheme is often used by organisations such as the NHS to manage workforce reductions and control costs without resorting to compulsory redundancies.
What are the effects of the changing NHS landscape?
The NHS in England is currently undergoing significant transformation. The Government’s ambitious ten year plan focuses on:
- Shifting care from hospitals to community-based services;
- Introducing digital healthcare systems; and
- Emphasising prevention over treatment rather than relying solely on cures.
These changes are leading to widespread restructuring within NHS organisations. As a result, many NHS employers are seeking innovative ways to manage staffing and costs, often aiming to avoid compulsory redundancies during reorganisation and future workforce planning.
What is a Mutually Agreed Resignation Scheme (MARS)?
A Mutually Agreed Resignation Scheme, commonly known as MARS, is a voluntary severance scheme designed for NHS employees. Key features include:
- Voluntary Departure: Employees may choose to leave their job by mutual agreement.
- Severance Payment: In exchange for leaving, employees typically receive a severance payment, usually formalised through a settlement agreement.
- Workforce Flexibility: The scheme helps NHS organisations to support the redeployment of staff who are affected by reorganisation. It enables suitable alternative roles to be offered and reduces the risk of compulsory redundancies.
Eligibility criteria and application processes are set by each NHS employer, but most will require the employee to sign a formal settlement agreement to receive the severance package.
Why is legal advice essential before signing a settlement agreement?
According to UK law, it is a requirement that employees receive independent legal advice before signing a settlement agreement under MARS. An employment solicitor plays a key role in ensuring your interests are protected.
Who Pays for the Legal Advice?
It is standard practice, though not a legal requirement, for employers to contribute towards the cost of legal advice regarding a MARS settlement agreement. The agreement should specify the exact amount that that the employer has agreed to contribute. Typically, the solicitor will invoice the employer directly, so there is no additional cost to the employee unless further negotiation is required.
How DPH Legal can help NHS employees
If you work for the NHS and have been invited to consider a MARS agreement, we can help by providing:
- Careful review and explanation of the terms of the settlement agreement in clear language;
- Expert, independent legal advice on your rights and entitlements; and
- An assessment as to whether the compensation being offered to you is fair and reasonable.
If you are not satisfied with the terms of the agreement, you can discuss with your solicitor if you would like a more favourable settlement to be negotiated with your employer on your behalf.
How DPH Legal can help NHS Employers
If your NHS organisation is implementing a MARS due to restructuring or workforce redeployment, we can:
- Collaborate closely with your HR and legal teams to provide a tailored solution for your organisation;
- Offer independent legal support to affected employees, ensuring they are properly informed; and
- Facilitate a seamless, streamlined process that protects both the organisation and the staff.
While MARS can be a positive and practical solution for both employers and employees, it is essential to fully understand the implications before agreeing to the terms. Independent legal advice ensures you are making an informed decision and that your rights and interests are safeguarded.
Feel free to contact our solicitors if you have been offered a MARS settlement agreement and need legal advice. You can call us on 0118 208 2000 or leave a message on our website: DPH Legal
