The Small Business, Enterprise and Employment Act 2015 and Pubs Code etc. (Amendment) Regulations 2022

Insertion of regulation 32A to 32C

9.  After regulation 32 insert—

“The resolution period

32A.— (1) From the beginning of the resolution period to the end of the MRO procedure, the tied pub tenant and pub-owning business must seek to agree a tenancy or licence that is MRO-compliant and must seek to agree the rent or money in lieu of rent that is to be payable in respect of the occupation of the premises concerned under the proposed tenancy or licence.

(2) In these Regulations the “resolution period” means the period which begins at the time specified in paragraph (3) or (7) and ends at the time specified in paragraphs (4) to (6).

(3) Unless paragraph (7) applies, the resolution period begins with the earlier of—

(a) the day after the day on which the tied pub tenant receives a full response under regulation 29(3); or

(b) the day after the day on which the period of response ends.

(4) The resolution period ends with the earliest of—

(a) the period of 3 months beginning with the day on which the resolution period began;

(b) the day on which the tied pub tenant communicates to the pub-owning business, in writing, a decision to accept a tenancy or licence proposed by the pub-owning business; or

(c) the period specified in paragraph (6).

(5) During the resolution period, the tied pub tenant may give notice in writing to the pub-owning business of the tenant’s intention to end the resolution period.

(6) Where the tied pub tenant gives notice under paragraph (5), the resolution period ends with the later of the following—

(a) the period of 7 days beginning with the day after the day on which the pub-owning business receives the notice; or

(b) the period of 21 days after the day on which the resolution period began.

(7) A new resolution period begins in the circumstances and at the time described in regulation 33(1) and (2) in relation to, respectively, a full response and a required full response, and, save for paragraph (3), the provisions in this regulation apply to such a period.

The updated full response

32B.— (1) Within the updated period of response, the pub-owning business may send to the tied pub tenant an updated full response.

(2) In these Regulations the “updated period of response” means the period of 7 days beginning with the day after the day on which the resolution period ends.

(3) In these Regulations an “updated full response” means a response to the MRO notice that—

(a) is sent by the pub-owning business within the updated period of response;

(b) includes the information mentioned in regulation 29(3)(d);

(c) includes the information mentioned in regulation 29(3)(b) or (c) (as the case may be); and

(d) complies with the requirement in regulation 29(5A).

(4) A response under paragraph (1) replaces any full response sent under regulation 29(3).

Referrals to the Adjudicator for MRO non-compliance, etc.

32C.— (1) Where the tied pub tenant considers that—

(a) the proposed tenancy or licence in the pub-owning business’s full response sent under regulation 29(3), updated full response or required full response is not MRO-compliant; or

(b) the updated full response does not comply with the requirements of regulation 32B(3)(b) or (c),

the tenant or the pub-owning business may refer the matter to the Adjudicator.

(2) Paragraph (3) applies where the tied pub tenant or the pub-owning business intends to make a referral under paragraph (1).

(3) Before the referral is made the tenant, or, as the case may be, the pub-owning business must notify the other, in writing, of that intention.

(4) A referral under paragraph (1) must be made within the period of 21 days beginning with the day after the day on which the updated period of response ends.”.