2 years ago
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The government has cancelled a contract with P&O Ferries after it sacked nearly 800 staff without notice in March.
The Home Office said that a P&O agreement with UK Border Force would come to an end "with immediate effect".
Transport Secretary Grant Shapps said: "We're reforming maritime law to stop firms exploiting legal loopholes and protect workers' rights".
P&O Ferries replaced its sacked staff with foreign agency workers paid less than the minimum wage.
A Home Office spokesperson said: "In response to P&O Ferries' unacceptable behaviour, Border Force has terminated its agreement with P&O to provide contingency travel services to juxtaposed ports with immediate effect."
The Department for Transport said it had concluded a review of its links with P&O Ferries - resulting in its only contract identified with the firm being wound up.
Peter Hebblethwaite insisted that the decision was "the route we only deemed possible", however.
The sackings in March prompted outrage and led to calls for Mr Hebblethwaite to resign..
Image source, EPA
Image caption,Transport Secretary Grant Shapps said the government was reforming maritime law to stop firms exploiting legal loopholes
The Insolvency Service has launched criminal and civil investigations into the circumstances around the redundancies.
P&O Ferries services were suspended after the mass sackings and several of the company's vessels failed safety inspections before being cleared to re-enter service.
The reduced ferry capacity was a contributing factor in particularly long lorry queues building up on the way to Dover before Easter.
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