Caterham F1 Counter-Sue Former Employees Following Dismissal

Formula 1 team Caterham are set to counter-sue a number of former employees and their representatives following their dismissal. 

A statement on Monday revealed that a number of axed employees were commencing legal action against the team, claiming unfair dismissal and that Caterham had reneged on promises that they would be paid in July. 

Caterham has now responded that the accusations in the statement were incorrect and that it would be seeking compensation for damages. 

“Caterham F1 Team has read with great concern recent reports about a group of individuals who are claiming unfair dismissal from the Formula 1 team following its takeover by new owners,” a team statement read. 

“The team is now taking legal action against those parties representing the individuals concerned, and each person involved, seeking compensation for the damages suffered by the team due to the gross misrepresentation of the facts made by all those concerned. 

“These claims include the statement that they have been released from Caterham F1 Team – this is incorrect. Caterham F1 Team’s staff are employed by a company that is a supplier to the company that holds its F1 licence, the licence that allows it to compete in the Formula 1 World Championship. 

“Additionally, the team has read claims that its staff were not paid in July – again, this is wholly untrue. Every individual currently employed by Caterham F1 Team was paid their July salary in full on 25th July, one week before it is formally due on the last day of the month, in this case 31st July. 

“A formal request for the withdrawal of the relevant press statement issued on 28th July has been made by Caterham F1 Team and the team will vigorously pursue its action against all those concerned. However, it will not allow its core focus to be distracted from achieving tenth place in the 2014 Formula 1 World Championship, and building for the 2015 campaign and beyond.”

Former Staff Not Deterred

The former employees reacted to Caterham’s claims by suggesting Caterham was the company employing them.

In a statement released to the press on Wednesday the group said: “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 summary dismissal of employees from Caterham was done without warning or consultation, which is a breach of employment laws and will result in significant compensation claims.

“Lawyers [acting] for those who have been dismissed wrote to Caterham on 25 July 2014 urging a response to the above matters and inviting settlement.

“A response from Caterham to this letter is awaited.”