P&O Ferries have sacked all 800 crew on Thursday afternoon with โeffective immediatelyโ and all staff will be served with severance packages.
P&O Ferries said all services will be cancelled for the next few days as the business is โnot viableโ in its current state.
University of Salford HR expert, Dr Jonathan Lord assesses the decision and looks into the legal basis of the move.
Dr Lord said: โCan P&O lawfully force staff to be made redundant in this way? Employment Law states that you are part of a โcollective redundancyโ if your employer is making more than 100 redundancies in one location they must consult for at least 45 days. Employers must also hold โgroup consultationsโ if there is a collective redundancy, and support staff in finding alternative employment or proceed through a fair selection process for those at risk of redundancy.
โTherefore P&O would be expected to undergo this process before making any mass dismissals and based on media as well as social media reports on the 17th March, itโs not evident whether this has happened. P&O staff could bring a claim of unfair dismissal in the employment tribunals if this process is not followed, with the maximum compensation being the lower of ยฃ89,493 or 12 months’ gross pay. If they were not paid their notice or a statutory redundancy payment, claims could also be brought for these.
โThis could be extremely costly for P&O but in the long term could it be economically beneficial? The term โfire and rehireโ is a controversial method used by numerous businesses such as Weetabix, Tesco, British Airways, Heathrow and British Gas which involves sacking staff and then allowing them to apply for their old jobs on less favourable terms usually.
“Trade unions and many legal experts support a ban on the practice but ministers last year blocked a bill to do this even though 9% of workers were affected by such a scheme in the first year of the covid-19 pandemic. P&O are in the early stages of the process but rather than a straightforward fire and rehire, they could replace staff with agency workers and allow those made redundant to join the agencies.
โThis may assist P&O financially but reputationally this could have serious consequences. There is almost certainly going to be legal challenges by the unions around this process as well as mass tribunal claims but the biggest damage for P&O could be reputationally, with questions around their morality in dealing with staff being raised. The RMT union have stated that the situation was โturning into one of the most shameful acts in the history of British industrial relationsโ and also one which could overshadow the 185 history of P&O.โ
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