MARS stands for Mutually Agreed Resignation Scheme. Within the NHS, it is a form of voluntary severance used during periods of organisational change or service redesign. It allows an employee, with the agreement of their NHS employer, to resign in return for a severance payment.
In some cases, the exit will also be documented in a settlement agreement. This is a legally binding agreement under which the employee usually agrees to waive certain employment claims against the NHS trust or organisation. Because signing a settlement agreement affects legal rights, it is important to fully understand the terms before agreeing to them.
What should NHS staff in London check before signing?
Before signing an NHS MARS settlement agreement, employees should carefully review the financial package being offered, including any severance payment, notice pay, outstanding salary, and accrued annual leave. It is also important to consider how the payment will be taxed and whether there are any implications for NHS pension benefits.
Employees should also check the wording of confidentiality clauses, reference provisions, and any restrictions relating to future employment within the NHS or wider public sector. Some agreements may contain repayment provisions or broad waivers of legal claims, so the wording should be reviewed carefully.
MARS is not the same as redundancy, and employees should consider whether a redundancy process may apply in their circumstances before agreeing to resign.
Can an NHS MARS settlement agreement be negotiated?
In some situations, yes. Although NHS MARS schemes are usually governed by internal policies and approval processes, aspects of the settlement agreement may still be open to negotiation. This may include the level of compensation, the wording of references, confidentiality terms, tax provisions, or restrictions affecting future employment.
Negotiation may be particularly relevant where there are concerns about workplace disputes, discrimination, whistleblowing, redundancy procedures, notice entitlement, or the impact of the exit on pension rights and long service benefits. Employees should not assume that the first agreement presented is necessarily final or that every clause is standard.
Why legal advice is important for NHS MARS agreements
A settlement agreement can only validly waive statutory employment claims if the employee receives advice from an independent legal adviser, such as a qualified solicitor, on the terms and effect of the agreement. The agreement must also comply with the statutory requirements governing settlement agreements.
For NHS employees in London considering MARS, obtaining legal advice helps ensure that the financial terms, legal implications, pension position, confidentiality obligations, and future career restrictions are properly understood before the agreement becomes legally binding.
