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Code of Practice
Mitchells & Butlers are a signatory to the Pub Sector (England & Wales) Leased Code of Practice for pub companies with <500 tied pubs, and the Pub Sector – Scotland Code of Practice which both came into effect from 21st July 2016 and was more recently updated and amended on 1st April 2022.
These Codes set the standards you can expect from your interaction with us as your Landlord both in the recruitment process prior to taking one of our Leases and then subsequently throughout the life of your relationship with us.
In addition we have a supplementary document to the Code that gives specific details on how we intend to build and maintain an open and honest relationship with our Lessees.
A further document, the Best practice guide to the management of pub repairs and Dilapidations, was drawn up and issued in February 2022. It has been written as guidance with the aim of helping both pub companies and their tenants minimise the disputes relating to repairs and dilapidations at the end of the term. Whilst not legally binding Mitchells & Butlers are signed up to the principles of best practice behaviour that are set out in this document.
Key principles of the Code
Companies which subscribe to the Code agree to:
- Abide by its terms and to act at all times in the spirit with which Code has been compiled;
- Act with integrity and honesty at all times and conduct business in a professional, fair, and legal manner;
- Be transparent about their terms of business and other dealings, particularly any charges made or costs passed on, and the way in which rent has been assessed;
- Offer contracts that are fair, reasonable and comply with all legal requirements;
- Deal with complaints speedily and fairly, in accordance with a clearly defined internal dispute mechanism and with access to independent dispute resolution, where appropriate, if such a mechanism fails to resolve the complaint.
The Code also places obligations on Lessees to ensure that they are fully equipped to make informed commercial decisions. It includes requirements or recommendations for Lessees to take independent professional advice.
Furthermore the Code also sets out a requirement for prospective Lessees to undertake training to ensure that they fully understand the implications of a pub lease. This training is known as Pre Entry Awareness Training (PEAT) and is available via the British Institute of Innkeeping website www.bii.org/industry-advice/peat/.
External support for Lessees
As signatories to the code Mitchells and Butlers are committed to the professional standards enshrined in the Leased Code of Practice and to the operation of both the PIRRS and PICA-Service that are available in support of lessees.
The Pub Independent Rent Review Scheme (PIRRS) provides an independent rent assessor who will determine what a fair rent for your pub is when either the tenancy or lease is up for renewal or at any regular rent review. Details of the PIRRS application process and procedures to be followed can be found at www.pirrscheme.com
Where you believe that the company has not complied with the terms of the Leased Code of Practice, or where our behaviour has not reflected the intentions set out in the Code, a similar service is available through the Pub Independent Conciliation & Arbitration Service (PICA-Service). In the event that you have been unable to reach a resolution of a problem or complaint with us after going through our Company internal complaint resolution procedures you may refer the problem to PICA-Service. Full details of the application process and the procedures to be followed when referring a complaint to PICA-Service can be found at www.picaservice.com.