What are the legal implications of P&O Ferries sacking 800 staff?
Employment lawyers reacted with surprise after P&O Ferries sacked 800 seafarers out of the blue, warning it may have broken several laws and could be hit with claims for unfair dismissal.
As staff staged sit-ins on the company’s boats, with the backing of their trade unions, experts cast doubts over the legality of P&O’s plot to replace them with cheaper agency workers.
The affair could end up costing P&O “hundreds of thousands” in unfair dismissal payouts and penalties for legal breaches, they said.
What laws is P&O accused of breaking?
Employers are legally required to consult workers during a statutory notice period before making them redundant. P&O did not do this, so trade unions believe that its actions are likely to be unlawful.
“For those staff who have been, or are about to be dismissed, they will certainly have claims for unfair dismissal,” said Rustom Tata, chairman and head of the employment group at law firm DMH Stallard, adding that elements of employment law appeared to have been “wholly ignored”.
Further, employers wishing to make more than 100 redundancies must notify the business secretary at least 45 days in advance of those dismissals. On Thursday afternoon, a No10 spokesperson said: “We weren’t given any notice to this.”
Failure to notify the secretary of state would be a breach of the Trade Union & Labour Relations (Consolidation) Act 1992, the TUC said.
Unions representing P&O workers have been consulting lawyers with a view to taking legal action.
Redundancy notices are being issued, with the P&O apparently having recognised the unlawfulness of its actions with comments that enhanced compensation will be paid.
P&O’s offer of “enhanced” redundancy packages indicates that it may have “recognised the
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