A government travel contract with P&O Ferries has been axed after the company dismissed 800 staff without notice in March.
An agreement with UK Border Force would come to an end “with immediate effect”, according to the Home Office .
Transport secretary Grant Shapps tweeted: “I called for a fulll review of government agreements with P&O Ferries and working with UK Home Office we’ve terminated UK Border’s one-of-a-kind agreement with the company.
“We’re reforming maritime law to stop firms exploiting legal loopholes and protect workers’ rights.”
The ferry firm 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.
The severing of the contract followed the head of DP World, the Dubai-based owner of the ferry firm, accusing ministers of only having themselves to blame for P&O Ferries’ actions due to a perceived lack of support during the pandemic.
“Had they helped the company, it would have been a different situation,” Sultan Ahmed bin Sulayem told the Financial Times.
P&O Ferries received £11 million in furlough support from the government, according to Shapps, who has called for the money to be repaid.