Ben Bradshaw, the senior Labour MP and former cabinet minister, has demanded new laws to prevent a repeat of the abrupt sacking of 800 staff by P&O Ferries.

He asked the maritime minister, Robert Courts: “The problem here is that this company has broken the law because it knows it can get away with it, because the legal remedies are capped. Are you going to do something about that?

Mr Courts replied: “We are looking to bring forward a package that will stop this situation from happening, to make sure people are treated with, not only the respect, but to give them the protection they deserve.

“I can’t go into the detail of what that might be at the moment. We’ll look at all options.”

Mr Bradshaw also asked the maritime minister about a meeting between DP World and the transport secretary, Grant Shapps, in November 2021.

Mr Courts said he had been unaware of the meeting until today.

Following Peter Hebblethwaite’s appearance, Maritime Minister Robert Courts MP said the government is “as horrified as anyone else” by P&O Ferries’ axing of staff and will come to Parliament next week with a package of proposals.

Mr Courts added that Mr Hebblethwaite had cancelled a planned introductory meeting with him earlier this year, and had failed to respond to his office’s requests to reschedule.

P&O Ferries has been accused of “exploitation” after revealing it will swap sacked workers for cheaper agency staff on low wages.

Human rights organisation Anti-Slavery International has expressed concern over the move.

“We are shocked to hear allegations that P&O Ferries have hired new staff on as little as £1.80 per hour as reported by the Rail, Maritime and Transport (RMT) Union,” said Anti-Slavery International’s private sector advisor, Eloise Savill.

“This is a clear sign of exploitation and we are very concerned that replacing the crew with staff from a third-party agency will reduce oversight and transparency around recruitment, working conditions and pay.

“We reiterate our call for a new Business, Human Rights and Environment Act, one which would introduce a legal requirement for firms to take responsibility to identify and ensure workers are given the basic dignities of safe working conditions, reasonable hours and decent pay.”

The Tory MP Paul Howell has told Peter Hebblethwaite, chief executive of P&O Ferries: “You are now a laughing stock.”

He said: “I think it’s bizarre that you’ve chosen to break the law. It’s incomprehensible to me.

“You are now a laughing stock. I don’t know whether you’ll find it’s your Gerald Ratner moment.”

In 1991, Mr Ratner was chief executive of the chain of jewellers that bore his name. In a speech to the Institute of Directors, he described one of its products as “total crap”. The company lost £500m in value and changed its name to the Signet Group.

Mr Howell, who represents Tony Blair’s former constituency of Sedgefield, added: “It seems contemptible, for any right-minded people, as to the way you’re running your business.”

“With hindsight, you really think this is a viable way to run a business?”

Mr Hebblethwaite replied: “We weren’t viable before, and I know that if we hadn’t made radical changes, the business would have closed.

“That would not have been 800 redundancies with substantial severance packages, that would have been 3,000 people losing their jobs.”

Later, he said: “No question, the brand has taken a hit.

“But we now have a competitive, modern business.

“We have a future now.”

Peter Hebblethwaite, chief executive of P&O Ferries, has said that he would carry out the mass redundancy again.

He was asked by the Conservative MP, Nus Ghani “Would you change anything, knowing what you know now, about what you did last Thursday?”

“That’s a really, really difficult question, Mr Hebblethwaite replied.

“The business would close. The business was not viable. This is the only way to save this business and we have moved to a model that is internationally recognised across the globe and widely used by our competitors.

“I would make this decision again, I’m afraid.”

“What a mess,” said the Conservative MP Nus Ghani, while questioning Peter Hebblethwaite, chief executive of P&O Ferries.

“So P&O Ferries have been operating since 1844 and then in one Zoom meeting you’ve trashed it all.

“Eight hundred people now on the dole and you’re now trying to clean this up, having ruined the reputation of P&O Ferries.”

Earlier, Mr Hebblethwaite said: “This was a P&O Ferries board decision. This was not forced on us, or indeed suggested to us, by DP World.

“The reaction to this has been extremely strong, and I do regret that and I recognise it, I really, really do recognise it, but there was no P&O without the changes we needed to make.

“We anticipated this would be very difficult and very controversial.

“We’ve got a tough job to do to rebuild the business, but I think a P&O with a future and a P&O that is able to be competitive, pay its own bills and offer customers services that are required has a much better chance.”

The transport secretary, Grant Shapps, met executives from DP World – the Dubai-based company that owns P&O Ferries – four months ago, MPs have been told.

Peter Hebblethwaite, chief executive of P&O Ferries, told a committee hearing: “I believe that on 22 November, the secretary of state for transport was visiting Dubai, and at Expo he met with some of the DP World exec team, and that as part of a broader ranging discussion, which included ongoing investment in the UK, the subject of P&O Ferries was brought up, and that we would be needing to make changes to our business this year.

“At that point in our planning, we hadn’t finalised our plans, so I doubt that any conversation went further than that. But I don’t know.”

Andy McDonald, the former shadow transport secretary, said of the issuing of non-disclosure agreements (NDAs): “The members of this committee think this is absolute thuggery and criminality.

“You’re behaving like gangsters,” he told Peter Hebblethwaite, chief executive of P&O Ferries.

“Will you withdraw those NDAs and let people have the freedoms that we all enjoy?”

Mr Hebblethwaite replied: “It’s a standard confidentiality clause, and actually it’s there to protect both sides.”

Mr McDonald sighed and said: “Oh God.”

Peter Hebblethwaite said there was “absolutely no doubt” the company was required to consult the unions before taking action.

Peter Hebblethwaite, chief executive of P&O Ferries, has been telling MPs about the new crewing plans after 800 crew were sacked: “The previous operating model required us to have four crews for every ship on Dover-Calais.

“The new operating model requires us to have two crews and pay people when they work.

“The average Jersey seafarer was paid £36,000 and will receive £46,500 in compensation.

“The average hourly rate of pay is £5.50. On top of that there is a pension contribution, there is food and accommodation.

“On our domestic route, Larne-Cairnryan, we are paying national minimum wage.”

Mr Hebblethwaite was asked if he could live on £5.50 per hour, but did not respond.