PUBS CODE legislation GUIDE
What is the Pubs Code?
The Pubs Code, effective since 21 July 2016 in England & Wales, regulates the relationship between large pub-owning businesses (with 500 or more tied pubs) and their tied tenants. It aims to ensure fair and lawful dealing, making sure tied tenants are no worse off than if they were not subject to a tie.
What is the Scottish Pubs Code?
The Scottish Pubs Code, introduced under the Tied Pubs (Scotland) Act 2021, will be effective from October 2024. It establishes similar protections for tied pub tenants in Scotland, with distinct procedures and timelines compared to the Pubs Code in England and Wales.
What is an MRO lease?
A Market Rent Only (MRO) lease allows pub tenants to pay an open market rent and purchase supplies independently, breaking the tie with the landlord’s products.
How do I request an MRO lease in England and Wales?
To request an MRO lease, you must serve a notice to your pub-owning business during specific trigger events such as rent reviews, lease renewals, or significant changes to your lease terms. The process includes several stages, each with specific timeframes outlined in the Pubs Code.
How do I request an MRO lease in Scotland?
To request an MRO lease under the Scottish Pubs Code, you can serve a notice to your pub-owning business at any time, as long as you meet the following eligibility criteria:
- Your lease term must be more than one year.
- More than half of the lease term must have passed.
- You must not have requested an MRO lease within the past two years.
- Neither party should have served a notice to end the lease.
- The investment exception does not apply.
What are the benefits of an MRO lease?
An MRO lease offers increased profitability and operational freedom by allowing tenants to negotiate open-market rent and source supplies independently. This can lead to better financial terms and more control over business operations.
What are the trigger events for an MRO request?
Trigger events in England & Wales include:
- Rent reviews
- Lease renewals
- Significant changes to lease terms or conditions
- Annual price increases in the tied products
Specific conditions and timelines vary between the Pubs Code in England and Wales and the Scottish Pubs Code.
How long does the MRO process take?
The MRO process involves several stages, including serving notice, negotiation, and potentially arbitration. The timelines for each stage are set by the respective Pubs Codes and can vary between England and Wales and Scotland.
What if my landlord refuses my MRO request?
If your landlord refuses your MRO request or offers unsatisfactory terms, you can refer the case to an independent arbitrator for resolution. Both the Pubs Code in England and Wales and the Scottish Pubs Code provide mechanisms for arbitration and dispute resolution.
How does the Pubs Code ensure fair treatment?
The Pubs Code mandates fair and transparent dealings by pub-owning businesses. It ensures tenants receive necessary information for informed decisions, allows for rent reassessment, and provides the right to request an MRO lease under specific conditions.
Are there differences in how disputes are resolved?
Yes, while both codes allow for arbitration, the processes and timelines for dispute resolution can differ between England and Wales and Scotland. Understanding the specific procedures applicable to your location is crucial.
How can I prepare for requesting an MRO lease?
Preparation involves understanding the trigger events, gathering necessary documentation, and potentially seeking expert advice to ensure your request is properly formatted and justified. MDE Pub Consultants can provide guidance on preparing and submitting an MRO request.
How does the adjudicator role differ between the codes?
In both England and Wales and Scotland, the adjudicator is responsible for enforcing the Pubs Code, resolving disputes, and ensuring fair treatment. However, the specifics of their powers and procedures can differ, so it’s important to understand the regulations specific to your region.
Can MDE Pub Consultants assist with both English and Scottish Pubs Codes?
Yes, MDE Pub Consultants are experienced in both the Pubs Code for England and Wales and the Scottish Pubs Code. We offer tailored advice and support for navigating the legal complexities, ensuring you get the best possible outcome for your pub business.
Why should I seek professional advice?
Navigating the Pubs Code and transitioning to an MRO lease can be complex and time-consuming. Professional advice ensures that you understand your rights, meet all procedural requirements, and maximize the benefits of an MRO lease. MDE Pub Consultants have extensive experience and a proven track record in helping pub tenants achieve favorable outcomes.
Contact Us
Email: info@mdepc.co.uk
Phone: +44 (0) 1707 830217
For all your inquiries and consultations, MDE Pub Consultants is here to assist you. Let us help you navigate the complexities of the Pubs Code and secure a prosperous future for your pub business.