A mutually agreed resignation scheme (MARS) is a form of voluntary severance, where an employee, in agreement with their employer, resigns in return for a severance payment Employees are not being made redundant. The purpose of such schemes includes to make a vacancy available to other staff who are at risk of redundancy.

The NHS National MARS is outlined in Agenda for Change terms and conditions. This scheme offers significantly less terms and conditions than voluntary redundancy rates set out in the NHS Terms and Conditions Handbook or compulsory redundancy rates.

MARS is often proposed by an employer before a voluntary redundancy scheme is available, as an alternative to voluntary redundancy, or where compulsory redundancies are anticipated.

The RCN opposes employers use of NHS MARS, for the following reasons:

• Undercutting redundancy rates – Severance payments will likely differ from voluntary and compulsory redundancy and may undercut them (for some or all employees)
• Different terms and conditions – These schemes require the individual to resign rather than be made redundant and that status may impact personal finances (e.g. pension, benefits, mortgage). They will also need to agree to specific terms and conditions which could vary from those issued for standard redundancy. For example, non-disclosure terms and waiving rights to future claims for work related injury.
• Vacated posts must be filled – Severance schemes are used to reduce staff while retaining the role/function, however, given the significant level of savings being required currently in the NHS in England and lack of clear plans, it is almost impossible to see how vacated posts will be filled. If vacancies are not filled this may constitute a redundancy or potential redundancy situation. Similarly, if the service or function of that role is transferred to another employer, then this should be considered under TUPE as part of the required consultation.
• Funding severance payments – There remains a lack of clarity in relation to the funding sources and approval for any severance scheme, which may result in the costs being borne by the organisation; this would result in further cost pressures for the organisation and likely further requirements for reduction in staffing costs.

The RCN would also specifically oppose the use of MARS if:

• TUPE transfers could be applicable.
• The employer has no conceivable plans to fill vacated posts or has imminent plans for redundancies
• There is no additional funding available for settlements, and which may result in the costs being borne by the organisation; this would result in further cost pressures.

The RCN opposes MARS in the current situation of major system change in the NHS in England, but recognises that entering agreements like this is a personal choice. Advice and support are available to individual RCN members asked to enter into a settlement agreement to end their employment. RCN members should contact RCN Direct if they are being asked to enter into an agreement to end their employment.