Lawyers for Pubs & Bars

The Pubs Code, introduced in 2016, regulates the relationship between large pub-owning businesses (POBs) with 500 or more tied pubs in England and Wales and their tied pub tenants.

It aims to ensure fair and lawful dealing by POBs so that tied tenants are no worse off than if they were free of tie. Key provisions include the right for tenants to receive important information (such as when renewing a tenancy), have rent reassessed every five years, and request a Market Rent Only (MRO) option to go free of tie in certain circumstances.

Pubs Code arbitration is a dispute resolution process. It means disagreements between tied pub tenants and POBs regarding the application of the Pubs Code can be referred to the Pubs Code Adjudicator (PCA) for an independent decision, instead of going to court. The PCA can either arbitrate the dispute directly or appoint another person to do so, and the resulting arbitration award is legally binding on both parties.

Pub and bar owners face a variety of legal challenges that can impact their operations. Below are some of the most common legal issues:

Licensing laws: Operators must secure and maintain proper licences for selling alcohol and food, as well as for hosting entertainment such as live music or sports screenings. Violations, such as serving underage patrons, not adhering to pub noise laws or operating outside permitted hours, can result in fines or licence revocation.

Employment laws: Managing varying worker contracts requires adherence to strict rules on holiday pay, sick pay and working hours. Non-compliance can lead to pub operators facing legal disputes.

Health and safety: Pub and bar owners are responsible for maintaining hygiene standards in food preparation and public areas.

Regulatory compliance: Constant updates in pub laws regarding signage, smoking, loud music and age verification require operators to stay informed and adapt their practices accordingly.

Anti-social behaviour: Pubs must deal with issues like underage drinking, drug use and disorderly conduct. Measures such as banning troublesome patrons or obtaining exclusion orders may be necessary to protect staff and patrons.

Taxation: Operators must comply with tax obligations, including VAT, PAYE and corporation tax. Failure to maintain accurate records can result in significant penalties.

Real estate and property law: Lease agreements often include clauses about property conditions and usage restrictions, such as noise limits. Legal advice is crucial when negotiating these terms.

Our experienced bar and pub lawyers can help you address these challenges and ensure you have the right support to remain compliant with ever-changing regulations.

When purchasing a portfolio of pubs in the UK, legal due diligence is essential to identify risks and ensure a smooth transaction. Key areas to focus on include:

Property and lease agreements: Verify ownership or lease terms, including rent reviews, break clauses and repair obligations.

Licensing: Ensure each pub has the necessary premises licenses for alcohol sales, late-night activities and other regulated activities.

Planning permissions: Confirm compliance with planning regulations and any restrictions on property use.

Employment matters: Review employment contracts, staff liabilities (such as pensions, benefits and redundancy), and compliance with Transfer of Undertakings Protection of Employment (TUPE) regulations.

Commercial contracts: Assess supplier agreements, franchise arrangements or other operational contracts tied to the pubs.

Environmental compliance: Check for potential liabilities such as contaminated land or breaches of environmental laws.

Financial health: Examine historical financial performance, any outstanding debts and tax compliance.

Acquiring pubs out of administration presents unique challenges and opportunities. Some of the key things you'll need to consider are:

Asset v share purchase: Decide whether to acquire assets or shares in the company owning the pubs. Asset purchases often limit liability but may exclude certain benefits like licenses.

Licensing continuity: Ensure premises licenses remain valid post-acquisition or can be transferred without interruption.

Liabilities: Be cautious about hidden liabilities such as unpaid debts, employee claims or tax obligations.

Property condition: Assess the physical state of the pubs and any repair costs required to bring them up to standard.

Staff transfers: Understand your obligations to existing employees under TUPE regulations.

Commercial viability: Evaluate whether the business model is sustainable and aligned with your strategic objectives.

When acquiring a pub as a going concern, you must adhere to employment regulations, particularly TUPE. Essential steps include:

• Employee transfer: Existing staff automatically transfer to your employment under their current terms and conditions unless agreed otherwise.
• Due diligence on staff liabilities: Review employment contracts, accrued benefits, such as holiday pay, and any ongoing disputes or claims.
• Consultation obligations: Inform and consult with staff or their representatives about the transfer process.
• Post-acquisition changes: If you plan to restructure or make changes post-acquisition, these must comply with employment law and be carefully managed to avoid claims for unfair dismissal or discrimination.

Proper planning and communication are essential to ensure compliance and maintain staff morale during the transition.

Our expert in pub law, Christopher Ainsworth, explains why you might consider hiring a bar lawyer to support your business operations:

"Operating a pub or bar involves navigating a complex landscape of regulations, from licensing laws to employment matters. Hiring a solicitor with specific expertise in the hospitality sector ensures you stay compliant, mitigate risks and protect your business from legal pitfalls. Choosing a bar lawyer provides you with a strategic partner who can help your business grow and thrive in a competitive market."