What can you learn from the P&O redundancies
You have no doubt seen the news about P&O Ferries firing 800 staff without notice.
Employees were shown a pre-recorded video which told them “your final day of employment is today”, and that they will be replaced by cheaper agency workers.
If every member of staff accepts the redundancy package they are offered, the company will avoid facing any tribunal claims. If not, the company may have to pay 90 days’ full pay for each employee, capped at a year’s salary. If the tribunal considers there are aggravated breaches of process, it can levy a fine of £20k per employee.
Key facts
- P&O is owned by DP World, based in Dubai
- Unions RMT and Nautilus International have staged demonstrations at ports including Hull and Dover
- Security guards (with handcuffs) were seen escorting crew off ships
- Agency staff were seen waiting in buses on the quayside
Aside from the morality of firing staff this way, the company should have filed an HR1 (it is criminal offence not to do this, and individual directors can be criminally liable). Also, where 100 or more redundancies are proposed, the usual minimum period of consultation is 45 days.
It may appear as though the company has broken the law. However, if employees fall under the definition of “seafarers”, they would be governed by the Maritime Labour Convention rather than UK employment law. It depends what’s written in their contract of employment.
What this means to you
Many companies are struggling since the pandemic, and may need to make people redundant. However, there is a proper process that should be followed. If your employer fails to do this, you might be able to make a claim for unfair dismissal or discrimination.
If your employer is reasonable, they might also offer support through:
- employee assistance programmes
- interview and CV preparation training
- providing you with a strong reference
How we can help
There are clearly defined circumstances where a company can make its staff redundant and the company must follow a process of consultation. P&O Ferries have admitted that the consultation process was not followed and it is questionable whether the defined circumstances of a redundancy arise. This may give grounds for a claim of unfair dismissal.
Also, if the next stage is, as reported, to replace the dismissed staff with “foreign workers” on cheaper wages, that potentially gives rise to a discrimination claim.
We are aware that P&O Ferries have indicated that an enhanced package will be offered.
We can provide a range of advice on these issues including advice on your next steps, consideration of any offers or advice on a settlement agreement if you wish to accept the offer.
Related reading
If you found this information useful, you may also benefit from reading some of our other articles on the subject:
- Being made redundant from your public sector job?
- Have I been made redundant?
- Was it fair to make you redundant?
- Have you been made redundant?
- What does TUPE mean?
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