Old TUPE regulations stipulated that owners of companies bought out of insolvency would have to honour all of their standing terms and conditions, such as rates of pay and sickness benefit.

New TUPE regulations will now enable employers to waive these conditions given they "expeditiously" consult with staff representatives.

"We welcome any changes to the horribly complex TUPE regulations," said the BPIF. "We're very glad to see the Government has done something to assist companies in insolvency."

Old employers will also now have a duty to provide new employers with liability information on all transferred employees, including any grievances or disciplinary disputes that may have arisen.

Should these not be disclosed and the employee wins a legal claim against the new employer, the new employer will be able to claim compensation from the old employer with a 500 per employee minimum.

"Clearly the longer a company is not trading, the harder it is to get it back up and running," said Mercury Search and Selection managing director Dani Novick. "The new regulations should serve to provide clarification and simplify the process when companies are bought out of insolvency."