It looks like the dispute between Caterham and 38 former staff members won't be settled out of court after the ex-employees started legal proceedings.
The Leafield squad laid off workers after the team were bought out by a Swiss-Middle Eastern consortium and reported they were forced to let the staff go as part of a "necessary step taken by the new owners of Caterham F1 Team whose priority is the future of the team".
However, the former employees decided to seek legal advice as "they were sacked without consultation in breach of employment law and are claiming breach of contract and unfair dismissal".
Caterham then decided to launch a lawsuit of their own to "seek compensation for the damages suffered by the team due to the gross misrepresentation of the facts made by all those concerned".
The former employees have now started legal proceedings in a statement: "38 former staff have today issued employment Tribunal Proceedings against Caterham in light of its failure to settle claims following their unlawful axing by new owners back in July," it read. "Due to the amount of money involved in the claims made, further High Court Proceedings are also imminent against the Leafield F1 company.
"Furthermore, contrary to reports made by Caterham, the ex-employees have still not been paid their July salaries despite promises that they would be paid for 1-15 July. Nor have the employees or their solicitors received any substantive response to their letter to Caterham on 25 July 2014 urging a response to the above matter and inviting settlement.
"The hope is that Caterham will enter into a constructive discussion with the employees and their legal representatives so this matter can be resolved swiftly and amicably."
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