The government wants an explanation from P&O as to why it made all its crew redundant without notice. P&O’s Dubai-based owners DP World has replaced sacked staff on the ships with foreign workers allegedly paid £1.80 an hour. It believes it can do this because its Cyprus-registered vessels are not subject to UK employment and minimum wage law.

Speaking in parliament, transport committee chair Huw Merriman said firms that wanted to make more than 100 people redundant had to notify the business secretary before giving notice to workers at least 45 days before dismissals. Merriman called on the government to “formally issue criminal procedures” if no satisfactory explanation was received. Legal action carries unlimited fines.

A debate on the issue heard a “window of opportunity” was missed to save jobs after plans were revealed to the government. Ministers were informed of P&O’s intention to sack all its crew by video link last Wednesday, the night before the decision was made public. 

Shadow transport secretary Louise Haigh told parliament a leaked memo proved ministers knew of P&O’s intent and that nothing in it “expresses any concern, any opposition or raises any alarm about the sacking of 800 loyal British workers”.

“This is the clearest proof that the government’s first instinct was to do absolutely nothing,” she said, adding: “Either the government were bewilderingly incompetent, or they were complicit.

“The central calculation by DP World that this government would not lift a finger to stop it has so far been proven right.”

Parliament was told sacked workers included 18 apprentices and that DP World had previously paid £270 million to shareholders. P&O also received more than £10 million in furlough payments and £4.4 million in freight subsidies during the pandemic.

Haigh called for criminal proceedings against P&O for breaches of employment law and for the government to review contracts with it and DP World, which operates Southampton and London Gateway ports.

Transport secretary Grant Shapps said P&O’s actions were “shameful and utterly unacceptable” and that he had first heard about its intentions at 8.30pm the evening before. He added it was “astounding” ships called Pride of Kent and Spirit of Britain would have no British crew and would ask P&O to change the names.

Shapps said he had assumed legal redundancy processes would be followed and that he now understood workers would be offered six months’ standard redundancy pay plus two-and-a-half weeks’ pay for each year served. 

“However – and this is the catch – it is on the condition that they sign a non-disclosure agreement,” he added.

Shapps denied the government was doing little and said the Insolvency Service had been asked to investigate whether “relevant notice periods” were followed.

“I can inform the House that that would be a matter for criminal prosecution and unlimited fines,” he said. 

Shapps added: “We are reviewing, as a matter of urgency, all government contracts with P&O Ferries and with DP World.

"I do not want to see that company, given the way the management have behaved, advising on the way the British maritime sector is shaped and rolls out.”