P&O's Scottish services are to be shut down for at least a week, as 800 crew were made redundant on a pre-recorded Zoom video.
The UK government has confirmed that services will be suspended for approximately a week to 10 days while they locate a new crew.
Louise Haigh, the shadow secretary of state for transport since 2021 said the actions taken by P&O were a "national scandal" and believed it was illegal.
The suspension will hit services between Dover and Calais, Larne to Cairnryan, Dublin to Liverpool and Hull to Rotterdam.
But the UK government has said it does not expect the supply of critical goods and services to be impacted.
Some crew are defying orders and refusing to leave their ships in protest. The firm said it was a "tough" decision but it would "not be a viable business" without the changes.
Union RMT said crew members were being replaced with cheaper overseas workers.
Aviation and maritime minister Robert Courts told the House of Commons that staff should take legal advice over what has happened.
"I know members across the house will share my concern over the loss of these routes. I should stress that P&O say they are only temporary and that alternative provision will be provided by other operators to whom I am extremely grateful," he said.
"I must warn travellers that they should expect some disruption over the coming days."
He said the treatment of the staff was "wholly unacceptable".
"Reports of workers being given zero notice and escorted off their ships with immediate effect while being told cheaper alternatives would take up their roles shows the insensitive way in which P&O approached this issue. A point I have made crystal clear to management when I spoke to them earlier this afternoon.
"I am extremely concerned and frankly angry at the way workers have been treated today.
"There can be no doubt that the pandemic has had a devastating impact on the finances of many travel companies including P&O but while their finances are matters for them, and them alone to take, I would have expected far better for the workers involved. "
Private security officers have been sent onto one ship docked at Larne Harbour in Northern Ireland to remove staff on board, according to the RMT.
Shadow transport secretary Louise Haigh said the P&O action was a "national scandal".
"It is a betrayal of the workers that have kept this country stocked throughout the pandemic.
"I've heard directly from the crew throughout the day, their lives upended, the jobs they depended on scrapped. Workers are now left wondering how on earth they will put food on their family's table. And the management did not even have the decency to tell them face to face. They were told this life changing news on a pre recorded video.
"There are images circulating of what we are told or handcuff trained security, some wearing balaclavas marching British crew of their ships. This is not a corporate restructure. It's not the way we go about business in this country.
"It is beneath contemptm, the action of thugs.
"We need a clear unequivocal statement from the government. No ifs no buts. An overseas conglomerate cannot be given free rein to sack workers in secure jobs here in Britain at the click of a button and replace them with agency staff.
"The government does not give the green light to this appalling practice and must act now to secure the livelihoods of these workers not signpost them to the Department of Work and Pensions."
P&O said its survival was dependent on "making swift and significant changes now".
"We have made a £100m loss year on year, which has been covered by our parent DP World. This is not sustainable. Without these changes there is no future for P&O Ferries."
The cross-Channel operator has said on Twitter that sailings between Dover and Calais scheduled for today will no longer run, and customers with tickets were instructed to sail with rival ferry company DFDS.
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