IAS and Ameen reach out of court deal

The current Minister of Transport Mohamed Ameen and Island Aviation Services (IAS) has reached to an out-of-court settlement regarding his unlawful termination from the company previously.

Ameen, who was the then Director, Flight Operations of IAS was demoted from his position in 2019.

He contested this decision with a lawsuit at the Civil Court arguing his demotion was unlawful.

Civil Court last year held IAS decision to demote Ameen was unlawful and violated the contract between the parties, and ordered the company to rehire him to the same or a similar ranked post within 15 days from the date of the court order.

The court also demanded IAS pay Ameen the remuneration inclusive of allowances for the period from his demotion until his rehire.

Instead of complying, IAS appealed the case at the High Court.

However, amid the appeal the parties to the case had reached a settlement outside of court after which the appellant requested the court to rescind the case.

In its statement about the case annulment, High Court said that IAS has agreed to pay MVR 2,202,508 in compensation for reverting its position on Ameen's demotion.

The minister on Tuesday, November 21, said that the settlement was reached during the previous administration, and said he had agreed for a significantly low percentage of the compensation to minimize the company's loss.

While speaking with Mihaaru News, Ameen said the compensation ordered by the Civil Court verdict was extensive due to which the parties to the case arrived to an out-of-court settlement to minimize the financial detriment to the company.

"I decided to forgo 80 percent of the actual compensation amount declared by the court. The two million in compensation was the 20 percent [I agreed to]," he said.

The minister clarified he did not intend to seek a hefty monetary compensation with his civil lawsuit. He added that the lawsuit was submitted to legally verify his demotion was unlawful.

With the settlement, IAS has already granted retirement to Ameen.

"I wanted to clear the record of a job termination," he added.

The minister said he had acquired legal counsel for the alternative dispute resolution with the aim to ensure the company did not bear notable losses, and added that the discussions between him and the company took place during the previous government.