Scottish Pubs Code: arbitration guidance

Arbitration

Arbitration and the difference between arbitration and complaints

The purpose of arbitration is to provide a fair resolution of specific disputes without unnecessary delay or unnecessary expense. For SPCA arbitration, that means disputes between tied-pub tenant and pub-owning businesses about compliance with the Code (other than an excluded term – e.g. requirement to provide information to the adjudicator or requirement to comply with adjudicator’s direction following an investigation).

It is important to distinguish between arbitration about disputes arising under the Code and any complaints about the broader practices of a pub-owning business. SPCA arbitration is a formal process that addresses specific disputes under the Code, whereas complaints may concern a wide range of general business practices. 

If you need help deciding whether your issue is appropriate for arbitration or should be raised as a matter for investigation by the SPCA, please read the information on our website or contact the SPCA Enquiry Line (Tel: 0300 244 1225). Email: pubscodeadjudicator@gov.scot

Things to think about before making a referral for arbitration

If you have a disagreement with a pub-owning business regarding the application of the Code or your rights, and efforts to resolve it informally have failed, you can refer the dispute to the SPCA for a decision.

It is important to remember that a dispute may only be referred for arbitration if the tenant has first notified the pub-owning business that they consider there has been a failure to comply with the Code. 

Note that pub-owning businesses can also submit disputes for arbitration. Before submitting a dispute for arbitration, a pub-owning business is expected to have taken reasonable steps to resolve the issue informally with the tied-pub tenant. This includes engaging in open discussion, exploring possible solutions, and making efforts to reach a mutual agreement.

Time limits for making a referral for arbitration

There are some important timing rules to follow before you can refer a dispute for arbitration:
The Act provides the following time-limits:

The tenant must notify the pub-owning business of the alleged failure to comply with the Code within six months of the date upon which the alleged failure to comply with the Code occurred. This 6 month period can begin on: 

1. the day on which the alleged failure to comply with the code occurred; or 
2. where the alleged failure was a continuing one, the day on which the failure ceased; or
3. the day on which the tenant became, or could reasonably be expected to have become, aware of the alleged failure, if later than the day mentioned in (1) or (2)

The dispute must be submitted for arbitration within a period of four months beginning with the day falling 21 days after the business was notified.

The 21-day period allows the parties reasonable time to try to resolve the dispute without the need for arbitration. 

It is important that you comply with the time-limits. We have provided more information on these time periods and how they are calculated in Annex 1.

Arbitration fees and costs

The fee payable by a tied-pub tenant for making a referral to the SPCA for arbitration is £250. This fee covers the initial administrative costs associated with the arbitration process. Each party in an arbitration must pay for their own costs related to the case.  The arbitrator can, as part of the arbitration award, require one or other party the pay the costs of the arbitrators’ reasonable fees and expenses in some circumstances. 

The time taken to complete an arbitration

The time taken to complete an arbitration depends on a range of factors including how complicated the issues are and how quickly the parties respond at different stages in the process. Expected timelines and deadlines for each step will be provided. This will include deadlines / target dates for key milestones such as the submission of evidence, hearings, and the arbitrator’s decision.

Publication history

First published:  5 May 2025
Original publication archive link: [ARCHIVED CONTENT] Scottish Pubs Code Adjudicator: draft arbitration policy - guidance