IPA backs overhaul of TUPE

The IPA has thrown its weight behind proposed changes to the TUPE laws, which can affect agencies winning business from a rival, following a major lobbying effort by the industry.
One of the most significant changes proposed by the Government is to remove the Service Provision Changes (SPCs) element of TUPE, which is responsible for the automatic transfer of employees from one business to another in certain circumstances.
Within the agencies, this typically applies when a client transfers work from one shop to another, most often after they have invited a number of agencies to pitch for the piece of business.
The IPA supports this proposed change and has made a number of points in its response, including:
* TUPE does little to protect employees who can be left in limbo while the transferor and transferee businesses decide their fate.
* TUPE is overly complex and causes businesses to lose significant management time and costs.
* TUPE hinders business development and can lose agencies new business opportunities.
* TUPE is often disadvantageous to clients.
* The UK’s advertising industry is world-renowned, but needs a level playing field in order to compete with agencies in other territories which are not hampered by TUPE.
The Government has indicated that its decision on the consultation will be announced this summer, with any changes being implemented towards the end of 2013.