How can we assist you with a MARS Settlement Agreement?
What is a MARS?
A MARS is a Mutually Agreeable Resignation Scheme. This type of scheme usually comes about when an employer is looking to save costs in light of them experiencing financial difficulties. The scheme works as a way of reducing a workforce without the requirement to make employees redundant. It is beneficial for an employer as they avoid having to go through a lengthy process of redundancy, and beneficial for the employee as they can voluntarily resign in exchange for a tax-free compensation payment of up to £30,000 from their employer.
What is a Settlement Agreement?
The terms of the agreement are usually formalised in a ‘Settlement Agreement’ which details the terms of the resignation. As a term of the agreement the employee agrees not to pursue claims against their employer and in return, they receive a termination or compensation payment.
Legal advice and costs
One of the requirements before entering into the agreement is that the employee must take legal advice on the terms of the agreement. The employer will offer a contribution to legal fees to allow the employee to have the agreement explained, and the standard contribution to this is upwards of £500 plus VAT.
If you are in the process reaching an agreement of this kind with your employer, we at Ellis Jones will guarantee to cap our fee at the contribution offered by your employer. There will be no costs payable by you, and we will invoice your employer directly.
Timescale and practicalities
We understand that settlement agreements often need to be dealt with quickly. At Ellis Jones we can offer a same day service and are able to arrange appointments face-to face in any of our South Coast offices or our London office, or by telephone or Microsoft Teams.
Summary of our process
- Receive instruction from an employee;
- Arrange and carry out an advice meeting (approximately 1 hour);
- Once advice has been given and the employee is content with the agreement we can arrange signing of the agreement (using an electronic signature or scanned document);
- We will return the agreement directly to the employer;
- We will raise an invoice directly to the employer for the legal advice given.
How can Ellis Jones help?
If you have been offered a settlement agreement under a MARS or any other situation, please do not hesitate to contact us on settlementagreement@ellisjones.co.uk or 01202 057754 to speak to a friendly and reassuring adviser from our Employment team.
About the author
Tayla Baird
Tayla Baird is a Solicitor in our Employment Law department and is based in our London office. Tayla has a range of expertise including providing advice on settlement agreements, providing HR and employment advice to employers, reviewing and preparing employment contracts, self-employed agreements and apprentice agreements and more. You can find out more about Tayla on her expert profile.
- T: 020 383 08421
- E: tayla.baird@ellisjones.co.uk
- London office: 107-111 Fleet St, City of London, London EC4A 2AB
How can we help?
When you submit this form an email will be sent to the relevant department who will contact you within 48 hours. If you require urgent advice please call 01202 525333.
