F1: Caterham team faces legal action from ex-employees

The Caterham Formula 1 team's new owners are facing legal action from around 40 of its former staff members, after they were fired in the wake of its recent takeover.

Following Tony Fernandes' decision to sell the outfit to a group of Middle Eastern and Swiss investors, Caterham's new owners have been looking at saving costs to make the team more financially viable. Part of that effort has included a reduction in staff numbers, with more than 40 members being dismissed ahead of the German Grand Prix.

These included several senior figures, among them team manager Graham Watson, head of track operations Gerry Hughes and deputy technical director Jody Eggington. But the staff believe the way in which they were dropped was a violation of UK employment law, and as well as taking legal action over the matter they want the FIA to look into the team's conduct.

A statement issued 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.

"It is understood that the employees, many of whom have supported the F1 team during its four 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."

The Caterham team has declined to comment about the situation for legal reasons.