As Scotland’s pub sector prepares for the implementation of the Scottish Pubs Code in March 2025, a central figure emerges in ensuring compliance and fairness: the Scottish Pubs Code Adjudicator. This independent authority oversees, enforces, and arbitrates disputes under the new Code, safeguarding the rights of tied-pub tenants and ensuring responsible conduct by pub-owning businesses.
The Scottish Pubs Code Adjudicator’s Vital Role
The Scottish Pubs Code Adjudicator stands as a pivotal figure in upholding the principles of the new Scottish Pubs Code. This independent authority, currently Sarah Havlin, is responsible for regulating the crucial relationship between pub-owning businesses and tied pub tenants. The Adjudicator’s comprehensive responsibilities ensure fairness and transparency across the sector, including:
- Investigating breaches of the Code, ensuring accountability for non-compliance.
- Offering guidance and advice to all parties involved, promoting understanding and best practices.
- Enforcing compliance through remedial actions or financial penalties, safeguarding tenant rights and upholding industry standards.
- Arbitrating disputes between tenants and pub-owning businesses, providing an impartial mechanism for conflict resolution.
For detailed information about the Code or to seek direct advice, you can visit the official Scottish Government website at www.gov.scot or contact the Adjudicator’s office via email at pubscodeadjudicator@gov.scot
MDE Pub Consultants specialises in guiding businesses through these regulatory changes. We can provide the expert assistance needed to ensure your declaration is timely, accurate, and fully compliant with the Scottish Pubs Code. Partner with us to navigate this new landscape with confidence.
Key Responsibilities Of The Scottish Pubs Code Adjudicator
Understanding “Tied Pubs” Under the New Code
A “tied pub” operates under a lease where the tenant is required to purchase alcohol from the landlord or a nominated supplier. It’s important to note that this “tie” does not dictate stocking requirements, allowing tenants flexibility in sourcing landlord’s products and selling others without penalty.
While tied agreements often come with higher product or service costs, they frequently offer the advantages of lower rent and valuable business support. The new Code strengthens the rights of tied tenants, entitling them to:
- Fair rent assessments.
- The right to request a Market Rent Only (MRO) lease or free-of-tied lease, freeing them from product/service ties.
- The ability to sell guest beers, subject to specific conditions.
Whether you’re a tied tenant looking to understand your new rights or a pub-owning business navigating these changes, MDE Pub Consultants offers tailored tenant support and strategic advice.
What Happens When The Code Is Breached?
The Scottish Pubs Code is designed to uphold transparency and fair dealing, as outlined in the Tied Pubs (Scotland) Act 2021. If a breach occurs, outcomes can range from:
- Dispute Resolution: Informal talks or mediation.
- Formal Complaints: Pub owners can file a complaint with the Adjudicator for investigation.
- Remedial Actions: Adjudicator may mandate specific actions to rectify the breach.
- Termination of Agreement: Severe breaches may lead to lease termination as per contract.
- Financial Penalties: Adjudicator may impose fines if appropriate.
All these actions work to guarantee that both pub-owning businesses and tenants comply with the fair dealing and transparency principles set forth in the Tied Pubs (Scotland) Act 2021.
Enforcement and Penalties: The Adjudicator’s Powers
The Adjudicator has significant power to enforce the Code, including:
- Directing businesses to take or stop certain actions.
- Publishing findings and requiring public notices.
- Issuing financial penalties up to 1% of the pub-owning business’s annual turnover.
Penalty amounts are influenced by factors such as the severity and frequency of the breach, intent, cooperation, financial gain, and any mitigating actions taken. MDE Pub Consultants can conduct compliance audits to help you identify potential risks and ensure your business operates within the Code’s guidelines, minimising the risk of penalties.
Transparency and Costs: Public Reporting & Investigation
After an investigation, the Adjudicator must publish a report outlining the findings, reasons, and any enforcement actions taken. If the report identifies the pub-owning business, that business must be given a chance to comment before publication.
In cases where a breach is found, the pub-owning business may be required to cover part or all of the investigation costs, including enforcement actions. If a complaint is found to be vexatious or without merit, the complainant may also be liable for costs. The Adjudicator will issue a written notice detailing the reason, amount, deadline, and payment method. Costs will not exceed the actual expenses incurred during the investigation and enforcement process.
Navigating The Arbitration Process
Disputes over Code compliance between tenants and pub-owning businesses can be submitted to the Adjudicator for arbitration, provided:
- The tenant has notified the business of the issue within 6 months.
- The business fails to resolve the issue within 21 days.
- Arbitration is sought within 4 months following the 21-day period.
Tenants must pay a £250 arbitration fee, and both parties may share the cost of the arbitrator’s fees and expenses. Facing a dispute? MDE Pub Consultants offers expert dispute resolution services, helping you navigate the arbitration process effectively.
Partner with MDE Pub Consultants for a Smooth Transition
The introduction of the Scottish Pubs Code marks a transformative step for Scotland’s pub industry. The Adjudicator’s role is crucial in promoting fairness, accountability, and transparency.
MDE Pub Consultants is your trusted partner in preparing for and adapting to these changes. Our team of experts provides:
- Comprehensive compliance audits to assess your readiness.
- Tailored tenant support to ensure you understand and exercise your rights.
- Expert dispute resolution services to navigate challenges smoothly.
- Strategic guidance for pub-owning businesses to ensure responsible conduct.
Don’t wait until March 2025. Contact MDE Pub Consultants today to ensure your business is fully prepared for the Scottish Pubs Code and ready to thrive in this new era of fairness.
Email: info@mdepc.co.uk
Phone: 0330 088 3133
