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0033 2023/24
18/10/2023
Corporate Services
None
Review of Mutually Agreed Resignation Scheme
To agree the revised Mutually Agreed Resignation Scheme (MARS)
The purpose of the report is to present a revised version of the Mutually Agreed Resignation Scheme (MARS) for 2023. This is the first revision since it was agreed by Cabinet and published in 2020. The report provides a high level overview of the proposed changes to the procedure which is attached at appendix A.
The scheme is scheduled for a three-yearly review. Since the scheme's introduction in 2020, the Government has introduced Statutory Guidance in respect of Special Severance Payments made by Local Authorities which impacts on the application of MARS. While the guidance recognises that payments such as those made under MARS can be an important mechanism to allow employers to reform and react to new circumstances, it is clear that payments should only be considered in exceptional circumstances and provide value for money for the tax payer. In terms of the Council’s scheme, this adds a clear responsibility to the decision-makers to ensure that MARS applications are only approved where there is a clear, evidenced justification for doing so which must be set out in the supporting business case documentation. This guidance also adds a potential further layer of approval. The government expects that any Special Severance payments should be approved according to the following process: • payments of £100,000 and above must be approved by a vote of full council, as set out in the Localism Act 2011 • payments of £20,000 and above, but below £100,000, must be personally approved and signed off by the Chief Executive, with a clear record of the Leader’s approval and that of any others who have signed off the payment • payments below £20,000 must be approved according to the local authority’s scheme of delegation. It is expected that local authorities should publish their policy and process for approving these payments The revised MARS scheme includes the new requirements set out in the Statutory Guidance.
The report presents the revised Mutually Agreed Resignation Scheme for approval as a delegated Executive Decision. The report summarises the main changes. The Executive Director for Corporate Services is requested to approve the new procedure, as attached.
There is a risk that in making payments to departing employees that exceed their contractual entitlement the Council could breach the Statutory Guidance on Special Severance Payments made by Local Authorities. The proposed scheme seeks to mitigate this risk by ensuring the appropriate approvals process is established, and that any requests are supported by a robust business case.
As above, the scheme is intended to ensure that any payments made under MARS will be in exceptional circumstances only and will provide value for money for the tax payer.
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Please contact Phil Ingham on 01744 676704
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