The Employment Rights Bill has introduced protections specifically devised for seafarers – toughening the laws around collective dismissal and cementing seafarer wage protections.
This package of protections is aimed at preventing another P&O Ferries scandal, after hundreds of seafarers were fired and replaced with lower paid agency workers in March 2022.
The bill also includes a measure that will end ‘fire and rehire’ practices except where employers genuinely have no alternative.
The Government will also close a loophole exploited by P&O Ferries – toughening the collective redundancy notification requirements for operators of foreign vessels.
This means operators planning to dismiss 20 or more employees will first be legally required to notify the government and face potential prosecution or an unlimited fine.
The Government will also introduce powers to implement international conventions relating to seafarer employment and is exploring options to introduce mandatory employment standards at sea.
Deputy Prime Minister Angela Rayner said: “We’re on a mission to end exploitative work and we’re legally enshrining our promises so no employer can abuse the system to rob their workers of the basic rights and dignity they deserve.
“What we saw with P&O Ferries was an outrageous example of manipulation by an employer and exactly why we’re taking bold action to improve job security in the UK.
“These long overdue changes will shield workers from the mistreatment of having their terms and conditions ripped up before their eyes, while benefiting good employers to compete on quality and innovation, rather than a race to the bottom.”
Transport Secretary Louise Haigh said: “The mass sacking by P&O Ferries was a national scandal which can never be allowed to happen again. These measures will make sure it doesn’t.
“This issue has been ignored for over two years, but this new Government is moving fast and bringing forward measures within 100 days.
“We are closing the legal loophole that P&O Ferries exploited when they sacked almost 800 dedicated seafarers and replaced them with low paid agency workers and we are requiring operators to pay the equivalent of National Minimum Wage in UK waters.
“Make no mistake – this is good for workers and good for business.
“With stronger protections for workers, this government will make work pay in every corner of the country.”
This package of legislation comes alongside the implementation of the Seafarer’s Wages Act.
Regulations laid out on 10th October 2024 allow the act – passed last year – to come into force on 1st December.
Alongside a similar law introduced by the French Government, this will establish a ‘minimum wage corridor’ across the short straits.
The act was designed to deliver fair pay, requiring operators that call at least 120 times a year at UK ports to pay their seafarers at least the equivalent of the National Minimum Wage equivalent.
Operators that fail to comply will be forced to pay a surcharge at each port call it makes.
Continued non-compliance could see operators refused access to the port altogether.
Paul Nowak, general secretary at the TUC, said: “P&O Ferries’ brutal and illegal sacking of 800 seafarers is one of the biggest scandals in modern day industrial relations.
“But instead of making sure no worker ever went through this ordeal again, the Tories left the door open for other rogue bosses to do the same as P&O.
“That’s why today’s legal safeguards announced by the government are so important.
“They will strengthen protections against bad employers who seek to exploit loopholes to mistreat staff.
“This shows the difference driving up employment standards can make – both in protecting workers and stopping undercutting.
“And it shows why Labour’s workers’ rights agenda is so vital to creating a modern economy that works for working people and decent employers.”