P&O Ferries “may have failed to comply with their legal obligations” by sacking 800 seafaring employees with no notice, according to legal experts.
Adam Pennington, senior associate solicitor specialising in employment law at Stephensons, said questions about the legality of the move will be raised because at least one of the unions involved is claiming the company failed to consult with staff.
“The decision to make 800 staff redundant with immediate effect is, quite understandably, devastating for the employees affected and the wider business as a whole,” he said.
He added that if the union’s claims are correct, “P&O may have failed to comply with their legal obligation to consult with those members of staff before making them redundant. In circumstances where an employer proposes to make 20 to 99 redundancies, the employer must consult with staff for at least 30 days before the first dismissal takes place. Where 100 or more redundancies are proposed, as in this case, the minimum period of consultation is 45 days.
“A failure to inform and consult with members of staff at risk of redundancy can give rise to a number of claims including unfair dismissal and claims for a ‘protective award’ for failing to comply with the minimum consultation periods.”
It is not known if any consultation was made; this morning P&O Ferries recalled its ships to port, suspending sailings “for the next few hours” and merely announcing a “major announcement” was on the way.
That turned out to be the redundancy of 800 employees, with immediate effect – announced via a Microsoft Teams meeting.
Maritime union Nautilus International has claimed that “there was no consultation and no notice given by P&O.”
“Be assured the full resources of Nautilus International stand ready to act in defence of our members,” said general secretary Mark Dickinson.
The Rail, Maritime and Transport union (RMT) told its members to stage sit-ins on P&O’s ships and said it was seeking “urgent legal action” as well as “calling for the Government to take action to stop what is fast turning into one of the most shameful acts in the history of British industrial relations.”
Social justice law firm, Thompsons Solicitors, is acting for RMT to fight on behalf of the sacked P&O Ferries workforce.
The firm has claimed P&O’s actions were “unlawful” and says it is considering all options, including employment tribunal claims and High Court proceedings.
“P&O’s sudden decision to fire all 800 UK staff – via a pre-recorded video call – is a shocking disregard of the most basic employment law,” claimed Neil Todd, trade union law expert at Thompsons.
“Aside from the legal requirement for due process to be followed, it’s simple common decency to communicate openly, honestly and in good time with your employees, many of whom will have worked loyally for the company for years.
“To blame Covid-19 for these sackings, when P&O took furlough payments and is part of a hugely profitable group of companies, is beyond cynical.”
Other legal experts agree that the redundancies may not be lawful if the company failed to consult with staff.
Tom Long, partner at Shakespeare Martineau, said it was not clear to him whether “P&O's decision to fire 800 staff with immediate effect complied with requirements for a normal mass redundancy.
“Where an employer plans to make 20 or more redundancies, there is a requirement for a period of consultation with employee representatives, such as a trade union. That period is 45 days, where 100 or more redundancies are planned in any one location.
“As such, P&O would be expected to undergo this process before making any mass dismissals.
“If employees are made redundant they can bring a claim of unfair dismissal in the employment tribunal, with the maximum compensation being up to a year's salary in most cases. If they were not paid their notice or a statutory redundancy payment, claims could also be brought for these payments.”
Joseph Lappin, head of employment at UK law firm Stewarts, said: “It remains to be seen whether P&O can justify the dismissals. Why now and why so suddenly?
“However, if P&O can demonstrate that the sudden dismissals are necessary and crucial to the survival of the business, perhaps to deal with the pressures imposed on the company by Brexit, rising energy costs and the pandemic, an Employment Tribunal might find that P&O’s conduct was reasonable.”
