The Home Office has terminated a contract with P&O Ferries, saying it "undermines workers' rights".

Home Secretary Priti Patel announced it would be ending a deal to transport staff to northern France if there is a problem at the Channel Tunnel.

She said: "The Home Office has terminated its agreement with P&O to provide contingency travel services to juxtaposed ports with immediate effect.

"Alongside the Department of Transport we stand against firms who exploit loopholes and undermine workers’ rights."

The ferry firm hit the headlines in March after suddenly sacking more than 800 staff.

The firm cancelled all services on the morning of the shocking news, leaving passengers stranded at Dover and Calais.

Staff were allegedly given "five minutes to get their stuff and get off the ship", according to one source.

At the time Dover and Deal MP Natalie Elphicke said: "This is devastating news for all P&O workers & their families.

"It is a u-turn on assurances given to me and the RMT Union over the last two years.

"It is shabby corporate behaviour by Dubai’s DP World and an insult to the decades of loyalty and hard work by Dover’s workforce."

Hundreds of people took to the streets of Dover over two days to protest against the decision, which left hundreds without jobs.

Days later P&O announced it was dishing out the "biggest ever" compensation package seen, with some staff allegedly getting up to £170,000.

All of its ships were forced to sit in their respective ports from March 17, when the firm sacked the seafarers with no prior warning.

Just days ago, The Pride of Canterbury, which had not moved from the port since then, was cleared to resume sailing between Dover and Calais again after it passed its safety inspection.