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Thursday 31st
posted by Morning Star in Sport

Formula One company Caterham fired 40 employees

by Our Sports Desk

The legal battle between Caterham and a group of former employees shows no sign of abating.

The Leafield-based team were taken over at the start of the month by a consortium of Swiss and Middle-Eastern businessmen as Tony Fernandes moved out of the sport — with a number of staff having their contracts terminated as a result.

With drivers Kamui Kobayashi and Marcus Ericsson unable to score the team’s first-ever points in Formula One so far this season, the team continues to be embroiled in the legal wrangle off the track with their ex-employees — who again issued a statement warning of “significant compensation claims” coming Caterham’s way.

“Reference the press statement released by Caterham F1 Team on 29 July 2014,” it read.

“As confirmed in the contracts of employment for those working in the Caterham F1 Team, Caterham F1 is ‘the trading name of the Employer and the name of its motor racing team entered into the F1 World Championship.’

“All those dismissed were employed in the Caterham F1 Team by their operational company Caterham Sports Limited (company number 07042086 previously 1Malaysia Racing Team (UK) Limited).

“The dismissal letters were on Caterham F1 Team headed notepaper and the reason for dismissal was given as ‘following the change in ownership and, as a result of the current financial position that the new owners have inherited, your position at Caterham Sports Ltd will terminate with immediate effect. 

“You are being dismissed in law for Some Other Substantial Reason.’

“The Caterham F1 Team website confirms the change of ownership as at 2 July 2014. The summary dismissal of employees from Caterham was done without warning or consultation, which is a breach of employment laws and contract and will result in significant compensation claims.”

With the sport now taking a four-week hiatus before returning at Spa-Francorchamps for the Belgian Grand Prix, the statement also urged Caterham to open a dialogue with the lawyers of the aggrieved party.