Criminal and civil investigations have been launched into the decision by P&O Ferries to sack nearly 800 workers.
The company was widely criticised for making employees redundant without notice on March 17.
Business Secretary Kwasi Kwarteng said the Insolvency Service has started “formal criminal and civil investigations”.
Following my letter to the Insolvency Service last week, formal criminal and civil investigations into P&O Ferries have now commenced.
— Kwasi Kwarteng (@KwasiKwarteng) April 1, 2022
Transport Secretary @GrantShapps and I will continue to follow this matter closely as the investigations progress. pic.twitter.com/CdtInufaIS
The Insolvency Service said: “Following its inquiries, the Insolvency Service has commenced formal criminal and civil investigations into the circumstances surrounding the recent redundancies made by P&O Ferries.
“As these are ongoing investigations, no further comment or information can be provided at this time.”
Grant Shapps, the Transport Secretary, said: “The Insolvency Service has reviewed P&O Ferries’ actions and placed it under criminal investigation for its actions.
“Peter Hebblethwaite stood before MPs and admitted to breaking the law, and his actions must now be scrutinised”.
Mr Hebblethwaite, the ferry firm’s chief executive, told MPs in an appearance before a Commons select commitee last week that his company broke the law by not consulting with trade unions before sacking workers.
He insisted the company would not have survived without taking the action it did.
Mr Hebblethwaite told MPs the average pay of the agency crew is £5.50 per hour, which is below the UK’s minimum wage.
Officials at the firm say this is permitted under international maritime laws. The firm’s fleet is flagged overseas, in Cyprus, the Bahamas and Bermuda.
On Wednesday, the Transport Secretary unveiled a package of measures in response to the sackings.
They included plans to create "minimum wage corridors" on ferry routes between the UK and other countries.
He also urged UK ports to refuse access to boats carrying seafarers paid below the minimum wage, and asked the Insolvency Service to consider disqualifying Mr Hebblethwaite from acting as a company director.
