The 2026 ARLA Penalty Guidelines: Practical Advice for Licensees

While the Guidelines are not binding, they clearly signal how the Authority is likely to exercise its discretion and licensees should treat them accordingly.

Set out below are the key points from the Guidelines and, more importantly, what they mean in practical terms for licensees.

The Guidelines are a strong indicator of likely outcomes

ARLA notes that penalties will depend on the “individual circumstances of each case.” However, the guideline penalties are likely to be treated as starting points in many cases. In the absence of clear reasons to depart from them, they provide a reliable indication of the outcome that might reasonably be expected.

Only for first breaches

The Guidelines make it clear that the indicative outcomes are generally intended for first breaches only. A clean compliance record remains crucial.  Where a breach has occurred, careful handling from the outset can help preserve your position and avoid compounding the issue.

Indicative penalties are now more clearly defined

The Guidelines set out indicative suspension periods for common issues, including:

Failed CPOs:

• 3 days’ suspension for on-licences, clubs, and stand-alone bottle stores
• 5 days’ suspension for supermarkets

Managers’ certificates:

• 4 weeks’ suspension where the duty manager was not directly involved
• 8 weeks’ suspension where the duty manager personally made the sale

Mitigation remains important

The Guidelines recognise mitigating factors such as:

• Early acceptance of the issue
• Steps taken to prevent recurrence
• Clear managerial responsibility

If an incident occurs a prompt internal review and practical remedial steps (such as additional training or improved processes) remain important.  Documenting those steps can assist in demonstrating that the issue has been taken seriously and addressed. We also recommend that you take advice early.

Ongoing focus on high-risk areas

The Guidelines reinforce that the most serious issues remain:

• Sales to minors (outside CPOs)
• Sales to intoxicated persons

They also emphasise the role of the duty manager as the “first line of defense.” Continued attention to staff training and supervision, particularly at duty manager level, is critical.  Systems should be actively maintained and reinforced, not simply documented.

Final observations

The 2026 Penalty Guidelines provide greater clarity around likely enforcement outcomes. For licensees, that clarity helps to understand both risk and response.

In practical terms, licensees would be well placed to:

• Maintain robust, active compliance systems
• Respond promptly and constructively to any issues
• Take steps to address and document any shortcomings
• Consider obtaining advice early where an infringement arises

Overall, while the Guidelines do not fundamentally change the regulatory framework, they make outcomes more predictable and reinforce the importance of both good compliance and a considered response when issues do arise.

The Harkness Henry Alcohol Licensing team can assist with practical advice on best practice for compliance with the Act, policies and documentation, staff training, and support and legal advice in responding to any potential or actual breaches.

This article is current as at the date of publication and is only intended to provide general comments about the law. Harkness Henry accepts no responsibility for reliance by any person or organisation on the content of the article. Please contact the author of the article if you require specific advice about how the law applies to you.