The government has been accused of "sitting on its hands" before 800 workers were sacked by P&O in a shock video call and urged to start criminal action against the company.

In an emergency debate in the Commons today shadow transport secretary Louise Haigh produced a leaked memo she claimed showed the government knew about the plans days before the news broke.

She said the government could have stepped in before it happened.

Labour wants all contracts with P&O owners DP World to be suspended and the government has confirmed they are under review.

Ms Haigh added the personal costs to these workers had been profound and their reward for years of loyalty was summary dismissal via a recorded video.

“It is nothing short of a scandal that this Dubai-owned company received millions during the pandemic but could tear up the rights of British workers while profits soared by 52%.

“We cannot allow British workers to be taken for a ride. The truth is that P&O and DP World did it precisely because they knew they could. They knew they could exploit employment law,” she said.

“The government was aware that 800 seafarers were to be sacked. It explicitly endorses the thuggish fire and rehire tactics P&O discussed with the department before Thursday. It is the clearest proof that the government's first instinct was to do absolutely nothing.”

Transport minister Grant Shapps said “it was deeply concerning to see footage of staff being removed… underlining the cynical approach to the operation” and said the first he knew of P&O's plan was 8.30pm on the evening before the staff call.

Dover MP Natalie Elphicke said the job losses were a "body blow" to the area. "Be in no doubt, this is shameful corporate behaviour... it is an insult to the years of dedication and loyalty of the Dover workforce, I hope DP World will reverse its dccision."

Earlier today, Ms Elphicke accused "left wing militants" of "bullying" her during a demo on Friday.

She turned up but was heckled by protesters who shouted "you're on the bosses side" and "you voted for fire and rehire".

The Rail Maritime and Transport union says Indian staff hired to replace P&O workers are being paid just £1.80 an hour but the company has not commented on that.

The RMT says inexperienced staff could put passengers at risk but P&O says safety is a top priority.

Ferries have been docked at Dover since the shock move last Thursday and the government says they won't set sail until they have passed checks.