If you’re an NHS worker weighing up voluntary redundancy, a Mutually Agreed Resignation Scheme (MARS) severance, or a settlement agreement, here’s a clear guide to help you decide your next steps quickly and confidently.
National restructuring means many staff across England are being offered voluntary redundancy or severance options, with timelines running into early 2026.
At Jackson Lees our expert team can turn around settlement agreement advice in just a few days, explaining your rights, the tax position on notice/termination payments, and whether the offer aligns with NHS norms, so you can move forward with clarity.
Tim Passmore, Solicitor in our Civil Litigation team, shares what you need to know before making any decisions.
What's the difference between NHS voluntary redundancy and MARS?
Voluntary redundancy (VR): This is based on NHS rules called Agenda for Change Section 16. If you qualify, you could receive a payment based on your length of service—sometimes up to 24 months’ salary for long-serving staff.
MARS (Mutually Agreed Resignation Scheme): This is not redundancy. It’s a voluntary scheme to help create vacancies for redeployment. Payments under MARS are usually less generous than VR.
It’s vital that you check whether your offer is VR or MARS, the terms and payments can be very different.
Do I need a settlement agreement and what must it include?
A settlement agreement is a legal document that confirms the terms of your exit and protects both you and your employer. It should include:
The payment details
Any reference you’ll receive
Confidentiality clauses
Your leaving date
You must get independent legal advice (referred to as an adviser’s certificate) before signing. We can provide this quickly and make sure everything is correct.
Is the first £30,000 tax-free? What about notice pay?
Most termination payments are tax-free up to £30,000.
However, notice pay (including Payment in Lieu of Notice or Post Employment Notice Pay) is taxable.
Anything over £30,000 may also attract employer National Insurance contributions.
Make sure your agreement clearly separates redundancy payments from taxable notice pay to avoid unexpected deductions.
Why is this relevant specifically to Alder Hey (Liverpool) right now?
We’re currently supporting NHS staff in Liverpool, including at Alder Hey, who’ve received settlement agreements as part of local restructuring.
If you’re part of this round of changes, our team can prepare and review your agreement swiftly and make sure it protects your best interests before you sign.
Need advice in Merseyside? Our team is here to help
Facing redundancy or leaving the NHS can feel overwhelming, but you don’t have to navigate it alone.
At Jackson Lees, we’re more than just legal advisers; we’re your trusted partners during this transition. Our expert team will act quickly, explain everything in plain English, and make sure your settlement agreement protects your future.
Whether you need clarity on your payment, reassurance about your rights, or simply someone to guide you through the process with care, we’re here for you.
Don’t leave your next chapter to chance, let us help you move forward with certainty and peace of mind. Please give us a call, request a callback or make an enquiry for swift, expert advice you can trust.