Fired P&O staff forced into NDAs to get redundancy payout

Despite being fired unexpectedly last week, it has emerged that the 800 P&O Ferries seafarers will only be entitled to their redundancy pay if they sign a non-disclosure agreement (NDA)

Transport secretary Grant Shapps told the House of Commons that the business was using such ‘gagging orders’ to try to “keep the employees quiet”, reported Sky News.

He went on to slam the company for acting in a “shameful and unacceptable way”.

It comes as the RMT Union who is representing many of the fired staff members raised claims that the business had since hired replacement seafarers from India, earning as little as £1.80 an hour.

While P&O hasn’t addressed these allegations, a source close to the organisation has stated that it is “wholly inaccurate”.

However, one former employee has shared that they are willing to speak openly about what happened, putting the pay-out at risk.

They branded the experience and treatment by P&O an “utter disgrace”.

Shapps added that the Insolvency Service is looking into the case, adding that if the relevant notice was not given and consultation not undertaken then this “would be a matter for criminal prosecution and unlimited fines”.

The government has given P&O a deadline of 5pm today (22 March) to answer questions regards this action, which will help to inform next steps.

‘Relentless pressure’

The Trades Union Congress (TUC) is calling on P&O to reinstate all sacked staff immediately, with no loss of pay. The body added that if it fails to do so, the firm should face severe consequences.

“The longer the government delays and does nothing the longer bad bosses will be able to get away with treating staff like disposable labour,” said the TUC’s general secretary, Frances O’Grady.

“Ministers must urgently bring forward an employment bill to root out exploitative working practices.

“And they must put relentless pressure on P&O to reinstate all sacked staff.”

‘Fragile’ employment law

Martin Williams, head of employment at Mayo Wynne Baxter, shared with Reward Strategy that the case with P&O “has illustrated the fragility of employment legislation and the enforcement of it”.

“While offshore work is subject to its own legal peculiarities, public attention has been drawn to long expressed concerns about the extent and strength of employment rights more generally,” he said.

“The debate is now fully in the open. Unscrupulous employers will be alive to such drastic tactics and may seek to follow a similar path. Unions and alike will use this as an example of why rights should not be reduced but strengthened.

“The government has been taken by surprise and will have noticed the public backlash. Any moves for reform (a euphemism for reduction) of rights will have to be paused while debate is played out.”