An NHS Mutually Agreed Resignation Scheme (MARS) is a voluntary severance arrangement under which you agree to resign from your employment in return for an agreed financial package. A MARS is not the same as redundancy or voluntary redundancy. As part of the process, your employer may ask you to sign a settlement agreement setting out the terms on which your employment will end.
If you sign a settlement agreement, you will usually agree to give up your right to bring certain legal claims against your NHS employer relating to your employment or the termination of your employment. In return, you will typically receive a financial payment and any other agreed benefits. Once a settlement agreement becomes legally binding, the claims covered by it cannot usually be pursued through an Employment Tribunal.
The exact rights you waive will depend on the wording of your settlement agreement, which is why it is essential to understand the terms before you sign.
Which claims are usually waived?
Most settlement agreements used as part of an NHS MARS require employees to waive a wide range of employment claims. These commonly include claims for unfair dismissal, breach of contract, wrongful dismissal, unlawful deduction from wages, discrimination, whistleblowing, statutory redundancy pay and other statutory employment rights connected with your employment or its termination.
The agreement should clearly identify the claims you are agreeing to waive, allowing you to make an informed decision before accepting the offer.
Not every legal right can be waived through a settlement agreement. For example, signing the agreement will not normally prevent you from enforcing the agreement itself, making a protected whistleblowing disclosure, or relying on certain pension rights. Claims arising from matters that occur after the agreement has been signed are also generally unaffected unless the agreement lawfully provides otherwise.
Why is independent legal advice required?
A settlement agreement will only become legally binding for the purpose of waiving statutory employment claims if you receive independent legal advice from a qualified independent legal adviser. During your appointment, your adviser will explain the agreement, identify the legal rights you are giving up, and ensure you understand the financial and legal consequences of signing.
In many NHS MARS cases, your employer will offer a contribution towards the cost of obtaining this advice. The amount of that contribution will usually be set out in the proposed agreement, although you may remain responsible for any additional legal costs if further advice or negotiations are required.
Should you sign your NHS MARS agreement straight away?
Receiving an NHS MARS offer does not mean you have to accept it immediately. You should take the time to consider whether the financial package is appropriate, whether the agreed terms accurately reflect what has been discussed, and whether there are any provisions you would like to negotiate before signing. You should also be aware of any deadline for accepting the offer.
Independent legal advice gives you the opportunity to review the agreement in detail, understand the rights you are giving up, and consider the legal and financial consequences of accepting the offer. It also allows you to understand the wider implications of leaving under MARS, including that it is treated as a voluntary resignation rather than a redundancy. Once the agreement has been signed and becomes legally binding, it will usually bring your employment relationship to an end on the agreed terms, making it important to obtain advice before making your final decision.
For more information, please contact us on 01524 907100, via email at info@pre-law.co.uk or through our online enquiry form
