The closure of City Link has exposed how company insolvencies fail to offer enough protection to employees, according to a damning report by MPs.
MPs said the system was too heavily skewed in favour of investors and the taxpayer and called for the balance to be shifted.
The report into the controversial closure of the company over Christmas stated that under the current rules, it was in the financial interest of a company to break the law and ignore the statutory redundancy consultation period.
Mick Cash, leader of the Rail, Maritime and Transport union, said the "shocking" report vindicated its complaint about the "carefully engineered collapse" of City Link.
He further said that "Lives were wrecked, with the taxpayer footing a massive bill, while those responsible skipped away unscathed and with large chunks of their assets protected."