Arbitration

Pubs Code Arbitration Access Denied for Former Tied Pub Tenants in UK

Published 2026-05-27 1 source Arbitration Jurisdiction Pubs Code Tenancy Disputes United Kingdom

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TL;DR

  • Former tied pub tenants in the UK are not eligible for Pubs Code arbitration.
  • A recent referral by an ex-tenant was rejected for lack of jurisdiction.
  • The exclusion raises concerns about unresolved disputes after tenancy ends.
  • The matter has been escalated to lawmakers for clarification.

Overview

An incident has highlighted that former tied pub tenants in the United Kingdom are ineligible to refer disputes to independent arbitration under the Pubs Code after their tenancy ends. The Pubs Code Adjudicator (PCA) rejected a recent referral on jurisdictional grounds, stating only current or prospective tenants qualify for arbitration, which has prompted concerns about a potential gap in dispute resolution coverage.

What Happened

A former pub operator attempted to bring a formal dispute to the Pubs Code Adjudicator shortly after leaving a tied pub agreement. The PCA rejected the referral because the tenancy had ended, citing the underlying legislation which specifies only current or prospective tied pub tenants can refer cases for arbitration.

The operator argued that financial clarity and the scope of the dispute only materialized after the agreement ended, suggesting there is a practical issue with the current definition in the Code. The PCA confirmed this jurisdictional limitation in correspondence.

As a result, the issue has been raised with a Member of Parliament, who is reportedly seeking clarification from the Department for Business and Trade about whether this creates an unaddressed gap for former tenants.

Industry representatives, including the British Beer & Pub Association and Marston's, said the issue is not widespread and emphasized ongoing support for current tenants.

Context

The Pubs Code, part of the Small Business, Enterprise and Employment Act 2015, regulates certain pub-owning businesses and sets terms for tied pub tenants, including access to independent arbitration for eligible disputes.

Section 70 of the legislation explicitly omits former tenants from eligibility, meaning that once an agreement ends, ex-tenants cannot access adjudication or arbitration under the Code. Industry responses suggest satisfaction levels among tenants remain high, but the current case raises questions about possible reform for exit-related disputes.

Why It Matters

  • The exclusion of former tied pub tenants from arbitration under the Pubs Code may leave some disputes unresolved if issues only become clear after a tenancy terminates.
  • This situation highlights a possible legislative gap affecting access to dispute resolution for a subset of former business operators in the UK pub sector.
  • Ongoing discussions with lawmakers could influence future amendments to the Pubs Code or related dispute processes.

Sources

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