Company insists it broke no laws despite mass redundancies and announces record-breaking compensation.

P&O Ferries’ CEO Peter Hebblethwaite has maintained that the company did not violate any laws by terminating nearly 800 employees without prior notice. This move has sparked widespread public outrage and raised pressing questions about UK employment law, especially in the wake of such a dramatic decision.

Hebblethwaite explained that the vessels involved are registered outside the UK and that all relevant authorities were notified in accordance with obligations. In a letter to Business Secretary Kwasi Kwarteng, Hebblethwaite confirmed the notice was sent on 17 March, ensuring no legal breaches had occurred with the sacking. However, he admitted the redundancies were a painful choice, adding that the action was taken as a “last resort” to prevent the company from entering administration.

The company has pledged over £36 million in compensation to affected workers, with 40 employees potentially receiving sums of over £100,000 depending on service length. Every affected worker will receive at least £15,000 as part of the severance package. Discussions are ongoing, with 575 of the 786 seafarers already engaging in negotiations. P&O has also provided job support to help these workers transition into new roles.

Despite these payouts, the situation has sparked criticism from unions. Mick Lynch of the Rail, Maritime and Transport union (RMT) condemned P&O’s actions, describing the payment structure as coercive and likening it to “blackmail.” He further argued that P&O’s decisions highlight significant weaknesses in the UK’s employment protections, accusing the company of undermining worker rights and legal standards.

Adding pressure to the situation, Frances O’Grady from the TUC has called for the government to intervene forcefully, warning that allowing P&O to escape accountability would send a dangerous signal to employers across the UK.

The controversy has extended beyond employment practices. Secretary Kwarteng has acknowledged that P&O has “lost the trust of the public” and has damaged the credibility of business standards. The Business Department is currently liaising with the Insolvency Service to determine if further legal action is necessary.

P&O Ferries maintains its stance, arguing that the decision to cut jobs was necessary to secure the company’s long-term viability and to avoid widespread disruption, but this has not quelled concerns over the ethics of its approach or the legal implications of its actions.

The dispute continues as unions, politicians, and the government grapple with the fallout from this unprecedented situation.