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

Lawyers have been appointed to represent what is believed to be up to 40 staff who were released by Caterham following the takeover of the F1 team by a group of Swiss and Middle Eastern investors advised by Colin Kolles.

A spokesman for the group said that "the summary dismissal of employees from Caterham was done without warning or consultation and will result in significant compensation claims against the team. Caterham has also reneged on promises that the employees would at least be paid in July. Lawyers for the group will take immediate action.

"It is understood that the employees, many of whom have supported the F1 team during its 4 years in the Championship, will be requesting the FIA - as a responsible regulator - to fully investigate the F1 team's conduct and the circumstances in relation to its recent change of ownership."

As revealed on Monday, one high-profile member of another team has voiced concern over the future of Caterham following the takeover.


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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.