Formula One: Caterham face legal action from axed staff after takeover
Published on Jul 28, 2014 11:02 PM
BUDAPEST (AFP) - The struggling Caterham Formula One team faces possible legal action from a group of around 40 former staff who were axed by a new management team following this month's takeover.
The team, point-less and last in the constructors' standings, were sold by Malaysian businessman Tony Fernandes to a consortium of Middle Eastern and Swiss investors who swiftly introduced a cost-cutting agenda.
A statement issued on Monday on behalf of the group of former staff said: "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.
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