Caterham F1 Team have responded to the claims of a group of former staff, saying it is concerned about the claims of a group of individuals after their dismissal from the team following its takeover by new owners.
Since Tony Fernandes sold the team to a group of Middle Eastern and Swiss investors, the new owners have been looking to reduce costs and did so by laying off around 40 of its staff.
Some of those united in a group and released a joint statement, saying they would take legal action against their former employer.
"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."
Following their initial refusal to comment on the statement, the team have now released a statement wherein they announce legal action against the former employees.
"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."
Caterham F1 have also formally denied the claims that its staff were not paid in July.
"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."
The team are seeking a formal withdrawal of the press statement made by its former staff, but concluded 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.