Pubs Code Trusses Tied Tenants

22 Dec 2011

GMB advises tied pub tenants to be cautious in using the industry pub framework code of practice (IFC) when involved in disputes with the pub owners to avoid detriment.

Ed Davey is either a knave or a fool as he assured tenants, when he decided to accept the BBPA voluntary code, that the code would not have a detrimental effect on them says GMB.

GMB has issued advice to its members who are pub tied tenants regarding the Industry Pub Framework Code of Practise for Tied Lease and Tenant Pubs (IFC) which has been incorporated into pubco codes and which has been issued to tied tenants by various pubcos. In letters to pub tenants pubcos are making clear that if any tenant uses the code to make a complaint that in doing this they will be deemed to have accept the code as legally binding on them and be obliged to follow all its terms. In other words if a tenant wishes to make a complaint regarding some breach of the code by their pubco they are in effect changing the terms of their leases.

Paul Maloney, GMB National Officer for pub tied tenants said, “One pubco, Punch Taverns, has told GMB members that all aspects of the code, about which they have had no input what so ever in drawing up, is legally binding on any tenant who uses any aspect of it to make a complaint against any pubco. Far from helping, the code could truss up any tenant who uses it as the basis to make a complaint. A letter from Punch Taverns to a GMB tied tenant makes this clear. If a tenant uses one bit of the code they will be deemed to have accepted all of the code which will be legally binding. In effect they are agreeing to change the terms of their leases.

Ed Davey the BIS Minister assured tenants, when he decided to accept the BBPA voluntary code, that the code would not have a detrimental effect on them. Ed Davey is either a knave or a fool. GMB is advising its members to use extreme caution in using this code and instead to rely on their leases and the common law to enforce their rights. The reasons GMB is giving this advice is that any benefit accruing to a tenant are more than offset by having to accept clauses which will be detrimental and onerous to the tenants.”