Time is slippery, and this question has at least 3 (really 4!) answers.
First, there is "what day is it?" Mars has a different length of day than the Earth's - close, but not the same. A Mars day is called a "
sol;" lander activities being measured in sols. For some reason I cannot fathom, each lander has started with "sol = 0" when it landed, even the lander / rovers than have come down in pairs close together in time (i.e., Viking 1 and 2 and MER A and B). So, something that happened on Sol 500 for MER-A ("Spirit") happened on a different Sol on MER-B (Opportunity). (I have suggested that Sols for Viking Lander 1 should be the Martian equivalent of Julian Days on the Earth (an uninterrupted count from a particular early date), but so far no one has adopted this.)
Second, there is "what season is it?" Mars has seasons (at this epoch) much like the Earth's, of course with a longer year, and there have been several proposals for
Martian Calendars. There is not even uniformity as to the number of months - the calendar I linked to above has 12 months of up to 70 sols, while the
Darian Calendar has 24 months, of 27 or 28 sols each. As far as I know, no astronomer or space mission has made use of these calendars, although they certainly worry about the seasons.
Third, there is "what is the time of day," or, "what solar time is it?" Just as on Earth, the amount of sunlight varies with the season, and there is also a (larger) "equation of time" (i.e., the local solar noon can http://www.giss.nasa.gov/research/briefs/allison_02/.) The Martian orbital eccentricity is large enough that it cannot be ignored in local solar time, even at a crude level. Since missions need to know the times of sunrise, noon and sunset, this has been calculated and used right from the start of Martian exploration.
Fourth, there is "what second is it" or (really) "is there a Martian coordinated time?" Time keeping on Mars has to date almost entirely been done on Earth, and transferred to Mars, as a good clock has never been sent to Mars. Actual spacecraft time is typically only good at the second level or so, and the only need for independent timing on Mars has been during superior conjunctions, the one or two week period when Mars is almost behind the Sun, and communications are difficult or impossible. For that, again, relatively crude clocks and roughly a second accuracy as sufficient.
With the
Deep Space Atomic Clock (DSAC), where a very good clock will be included on missions to use for navigation. In addition, Phobos Grunt also has a good clock, the "Ultra-Stable Oscillator," that willl hopefully go to Phobos. Once two such clocks are sent to Mars, there will be a need for coordination of Martian timekeeping (i.e., for Mars Coordinated Time, or MTC). Because neither the Earth nor Mars is in a circular orbit, MTC will drift back and forth with respect to UTC. That can be calculated, but whether MTC will be allowed to free run (i.e., to be a true time scale) or kept synced to UTC, is way too soon to tell.