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The government has given P&O a 5pm deadline to explain why 800 people brutally lost their jobs last week, before "further steps" are taken.
The scandal-hit company now face criminal prosecution after hundreds of people were suddenly made redundant in a shock video call last Thursday.
P&O were given the deadline after MPs discussed the situation in the House of Commons last night.
During talks politicians also suggested stripping the ferry of its Pride of Kent title and renaming it the "shame of Dubai", after reports workers were replaced with foreign staff, reportedly earning a wage of just £1.80 per hour.
North Thanet MP Sir Roger Gale blasted the firm - which is owned by Dubai-based DP World - for it's "crass stupidity".
He said: "When the CEO of P&O rang me last Thursday at about midday, he told me it wasn't a choice about 800 jobs take it or leave it. It was about 800 or 3,000.
"Well, many companies in the air on the roads and at sea have had to make redundancies as a result of covid and rising fuel prices.
"I know of none that have done it with the brutality, sheer indignity and crass stupidity with which P&O has handled this on behalf of head office in Dubai.
"About three months ago P&O were running an advert for staff recruitment. "This isn't just a job" they said. "It's a family."
"In east Kent, those of us who use it regularly, those of us who's constituents work for P&O regard them as family and friends.
"They are good honest, decent hard working men and women. And they are skilled and dedicated, and we can not afford to lose them.
"My message is this to Dubai - reinstate those 800 men and women now and then if you need to get around the table and talk about what restructuring may need to be done and do it properly and if you don't do that then I fear that the ship will be renamed. It won't be the Pride of Kent. It will be the shame of Dubai."
South Thanet MP Craig Mackinlay also vowed never to use the service again in light of the scandal.
Last night it was also revealed workers fired suddenly would only be given redundancy pay on the condition they sign 'gagging orders', according to transport secretary Grant Shapps.
He told the House of Commons the company is using Non-Disclosure Agreements (NDAs) to "keep the employees quiet" and it is behaving in a "shameful and unacceptable way".
It comes after the RMT issued a statement yesterday suggesting P&O Ferries, which is now being investigated by the government for its actions, is "exploiting" the seafarers brought into replace them.
General secretary Mick Lynch said: “The news that the seafarers now on ships in British ports are to be paid 2.38 dollars an hour is a shocking exploitation of those Seafarers and another gut-wrenching betrayal of those who have been sacked.
“The rule of law and acceptable norms of decent employment and behaviour have completely broken down beneath the white cliffs of Dover and in other ports yet five days into this national crisis the government has done nothing to stop it.
“These ships of shame must not be allowed to sail. The government has to step in now and take control before it’s too late.”
P&O has faced an enormous backlash from the public, being accused of "acting like thugs" and seeing hundreds take to the streets of Dover two days in a row to protest against the service.
Members of the RMT union blocked two roads in Dover this afternoon over P&O Ferries' move to make its entire crew redundant, effective immediately. Dover and Deal MP Natalie Elphicke also showed up in support and to speak to protestors.
Union members went across the A20 by the traffic lights, holding banners and flags that read "stop the P&O jobs carve up".
They also chanted "save local jobs" as they stood across the carriageway.
Yesterday, Labour accused the government of "sitting on its hands" while hundreds of workers were sacked by P&O, after shadow secretary Louise Hagh produced a leaked memo she claimed showed the government knew about the plans before news broke last week.
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.
She said: “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.
“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.”