What is the Licensing Act?

  • Employment Law
What is the Licensing Act?
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Peninsula Group, HR and Health & Safety Experts

(Last updated )

From theatres to restaurants – alcohol sales play a huge part across numerous business sectors. However, only employers with the right paperwork are allowed to sell or supply it on their premises. The Licensing Act is a law that regulates the sale of alcohol, late-night refreshments, and entertainment. The Act isn’t just for outlining the rules on permits. It also promotes duties towards managing the aftermath of alcohol overconsumption.

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From theatres to restaurants – alcohol sales play a huge part across numerous business sectors. However, only employers with the right paperwork are allowed to sell or supply it on their premises.

The Licensing Act isn’t just for outlining the rules on permits. It also promotes duties towards managing the aftermath of alcohol overconsumption.

If an employer fails to comply with the Act, they could face hefty fines, stock repossession, business closure, and even criminal prosecution. For further advice on alcohol licensing, speak to one of our expert HR Consultants today.

In this guide, we’ll look at what the Licensing Act is, which businesses it applies to, and how to apply for alcohol licenses for both temporary and permanent business operations.

What is the Licensing Act?

The Licensing Act is a law that regulates the sale of alcohol, late-night refreshments, and entertainment. (It came into effect on 24 November 2005; and only applies to the hospitality, leisure, and retail industry in England and Wales).

The Act presents a framework for licensing applications, including applying and appealing decisions. It also requires licensees, councils, and other agencies to take responsibility for the sale and supply of alcohol. The main aim of the Act is to help:

Are there different types of alcohol licenses?

Yes, there are three types of alcohol licenses outlined under the Licensing Act. These include:

Premises license: This is for any business or organisation that plans to sell or supply alcohol on a permanent basis.

Personal license: This is for any individual who plans to sell, supply, or authorise the sale/ supply of alcohol.

Club premises certificate: This is for any qualifying members’ clubs that plan to sell or supply alcohol. (They operate under certificates rather than premises licenses).

Who does the Licensing Act apply to?

Only certain types of businesses and organisations are granted alcohol licenses. For example:

How to apply for an alcohol license

Once you’ve decided which alcohol license your business event or operations requires, you’ll need to accomplish certain steps towards attaining the permit. Let’s take a look at what steps you need to follow:

Complete an application form

First, you’ll need to complete the alcohol license application form and send it to your local council – along with the right payment. Forms can be sent via postal or digital methods.

Depending on your business operations, you may be required to send your form to a ‘responsible authority’. For example, like the police or another local licensing authority.

You can also make alcohol license applications for temporary events, early-morning restriction orders, designated supervisors, and variations.

Pay the right fee amount

Depending on which alcohol license you require, you’ll need to pay the right fee. These are classified under the national non-domestic rateable value (NNDR) bands, including:

Band A: This applies to premises that aren’t exempt from non-domestic rating.

Band C: This applies to premises that don’t have an NNDR due to construction issues.

Larger-scale events may be subject to paying additional fees. This applies to venues expecting 5,000 people or more – despite not being built to cater to such numbers.

Wait for a decision

The licensing authority will pass their decision on granting or rejecting your alcohol licensing application. They’ll grant it if no ‘representations’ (objections) are raised.

If a representation is made, the license authority will decide if these are legitimate or frivolous. They’ll hold a hearing to outline their next steps; including:

All decisions passed by the licensing authority must be appropriate for your licensing needs. Individuals/businesses do have the right to appeal final decisions to the magistrate’s court.

What does the designated premises supervisor do?

A designated premises supervisor (DPS) is the primary contact between your business and local government. They should be aware of social problems and potential issues related to selling or supplying alcohol.

If an alcohol-related issue occurs, the police or local government bodies expect to reach your DPS – immediately, without delay.

Who counts as a responsible authority?

When applying for an alcohol license, only certain bodies classify as a responsible authority. These include:

Can public members raise representations?

Yes, a member of the public or business can raise representations about an alcohol license application being made. Representations can include positive and negative comments.

They could raise an objection due to issues related to crime and disorder, antisocial behaviour, and public safety. Councils will reject representations that are considered frivolous or related to personal disputes between businesses.

Do you need an alcohol license for temporary events?

If you want to serve or sell alcohol for a temporary event, you’ll need to complete a temporary event notice (TEN).

A TEN application applies to any temporary event that is expected to attract fewer than 500 people and last no more than 168 hours.

Can you sell alcohol bought from wholesalers?

Businesses can only sell alcohol bought from wholesalers through certain requirements. The wholesalers must buy their supplies from HMRC-approved sources. These are listed under the Alcohol Wholesaler Registration Scheme (AWRS) and given a Unique Registration Number (URN).

Any business that’s found to have purchased alcohol from an unapproved wholesaler may be liable to a fine or even criminal prosecution – along with stock being seized.

What counts as a licensable activity?

Any licensable activities conducted on a permanent basis must have a premises license from their local authority. This covers:

Sale or supply of alcohol: This applies to alcohol sales within retail, as well as the supplies for clubs. For example, in convenience stores or supermarkets.

Regulated entertainment: This applies to alcohol sales that take place in front of an audience for profit. For example, at indoor sports events or during live music performances.

Late-night refreshment: This applies to alcohol sales conducted at hot food and drink establishments to the public (between 11pm and 5am). For example, at restaurants or pubs.

What are mandatory licensing conditions?

The Licensing Act 2003 (Mandatory Licensing Conditions) (Amendment) Order 2014 outlines legal prohibitions related to alcohol licensing. For example:

Get expert advice on the Licensing Act with Peninsula

Alcohol is a common product that’s served across many business industries. However, before you start ordering drinks crates, you must own the correct paperwork and procedures.

Peninsula offers expert advice on the Licensing Act. We offer specialised guidance with HR contracts and documentation – ensuring your business operations are compliant with the law on serving and selling alcohol.

Want to find out more? Contact us on 0800 028 2420 and book a free consultation with one of our HR advisors today. 

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