Mutually Agreed Resignation Scheme

Mutually Agreed Resignation Scheme - Frequently Asked Questions

Scheme Open 1 April 2025 to 30 June 2025

What is a mutually agreed resignation scheme (MARS)?

The MARS scheme allows the Trust to offer a severance payment to an employee to leave their employment voluntarily.

As a national NHS scheme, this supports the Trust address financial challenges creating job vacancies which can be filled by redeployment of staff from other jobs or as a suitable alternative for staff facing redundancy.

The scheme applies to all employees of the University of Liverpool Hospitals Group namely, Liverpool University Hospitals and Liverpool Women’s Hospital.

What if an employee registers an interest in leaving under a MARS and then changes their mind about applying for the scheme?

Registering an interest does not commit employees to proceeding with voluntary severance. Employees can withdraw their application at any time up to the point that they sign a compromise agreement.

What about employees currently absence from their organisation, will they be able to apply?

Yes, if they satisfy the eligibility criteria. This should include staff on maternity leave, long term sickness, secondment or unpaid leave. The nature of their absence may mean communications are difficult or sensitive, but it is important that their attention is drawn to the existence of the scheme.

Can employees apply for the scheme if they have already indicated their intention to leave the organisation prior to the launch of the scheme?

If an employee has already submitted their resignation or given some other kind of clear indication that they intend to leave the organisation, they are not eligible for voluntary severance payment. If an employee asks to rescind their notice in order to apply for the scheme this not be agreed to regardless of whether termination notice has been completed.

How does MARS compare with redundancy payments?

The MAR scheme is not a redundancy or a voluntary redundancy. Entitlements to redundancy are set out in Section 16 of the NHS terms and conditions of service handbook.

What is basic pay?

Basic pay is defined as the pay employees receive based on pay scale / band and as stated on their pay slip. It does not include any additional payment such as:

• Overtime / emergency work done / waiting lists
• Additional programmed activities
• On call
• Emergency commitment payments
• Acting up
• Special duty / enhancement payments
• Recruitment and retention premia
• Discretionary points
• Distinction awards
• Band supplements
• Intensity supplements
• CD responsibility
• Clinical Excellence Awards
   

What happens to their pension if employees leave?

Employees can choose to:

• Leave their pension contributions in the scheme
• Transfer their pension to another scheme
• Take their contributions out of the scheme if they have ess than two years’ service
• Apply for their pension
• Take voluntary early retirement subject to eligibility criteria
• Claim their pension – subject to eligibility criteria
   

Annual Leave – what happens to their annual leave if staff are successful in their application for MARS?

Employees should be asked to use any outstanding annual leave during their notice period. If this is not possible due to operational requirements, they should be paid in lieu for any outstanding annual leave at that day of service, provided this has been agreed with their line manager prior to their resignation date being finalised.

Re-employment: Can employees return to work for the same organisation / NHS if they leave under MARs?

The purpose of the MARS payment is to compensate employees for loss of employment. Employees who leave the NHS under MARS would not be re-employed under normal circumstances by the NHS in England, in the same or a different post before a period of 1 month has elapsed. If an individual returns to the NHS within a month, they would be required to repay any MARS payment in full.

Where an employee returns to work for the NHS in England within 6 months and before the expiry date of the period for which they have been compensated (as measured in equivalent months / part months’ salary), then an employee would be required to repay any un-expired element of their compensation.

The following link takes you to the national NHS Employers FAQs:

Mutually agreed resignation scheme - section 20 | NHS Employers