F1 » Axed Caterham staff to sue new team owners


Axed Caterham employees are to commence legal action against the F1 team and its new owners

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rbr46

July 28, 2014 2:02 PM

All these f1 teams have HR departments, and every single employee of every team will have a contract with some form of notice period. Upper management and anyone with direct access to data within the team will have a minimum of 6 months notice while other employees will normally serve 3 months. Therefore these employees have been made redundant meaning they should get paid their full notice period. The way they are handling this issue I can see Caterham being in big trouble.

LLarry

July 28, 2014 2:33 PM

Redundancy law is quite specific - if there are 20 to 99 redundancies (as here) then the company is legally obliged to enter into staff consultation at least 30 days before any dismissals take effect.
Consultations must cover:
Ways to avoid redundancies.
The reasons for redundancies.
How to keep the number of dismissals to a minimum.
How to limit the effects for employees involved, eg by offering retraining.
There must also be an objective selection procedure to choose those who are selected for redundancy.
If Caterham didn't follow such a procedure then the affected staff would be entirely within their rights to consider action for unfair dismissal and breach of contract. Good luck to them.

rbr46

July 28, 2014 2:55 PM

LLarry: Redundancy law is quite specific - if there are 20 to 99 redundancies (as here) then the company is legally obliged to enter into staff consultation at least 30 days before any dismissals take effect.
Consultations must cover:
Ways to avoid redundancies.
The reasons for redundancies.
How to keep the number of dismissals to a minimum.
How to limit the effects for employees involved, eg by offering retraining.
There must also be an objective selection procedure to choose those who are selected for redundancy.
If Caterham didn't follow such a procedure then the affected staff would be entirely within their rights to consider action for unfair dismissal and breach of contract. Good luck to them.


Agreed, they have ignored such procedures.

mrfill

July 28, 2014 7:02 PM

These people may not be employees (PAYE and with the Caterham paying employers NIC) but contractors who maintain limited companies. The computer industry had lots of these in the 1990s. You got more money but no paid holidays, no sick pay, no pension scheme and you could have your companies contract cancelled without compensation. You oaid yourself a small salary (to avoid NIC) and took the rest using dividends (avoiding income tax and NIC). Redundancy does not apply as the employer (the limited company) still employs the employee.

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