In the case filed by former MIFCO CEO and Managing Director Dr. Vitaliy Lyubimov regarding his termination from his position without due notice, the Employment Tribunal has ruled that no compensation can be offered to him.
Lyubimov, who was the first foreign CEO brought to MIFCO in its 32-year history, was relieved from his post three months after being appointed. It is not clear why he was relieved from his position.
Regarding the wrongful termination case Lyubimov filed to the Employment Tribunal, it is said that he was not given any of the funds that should come with due notice.
And so, he requested the tribunal to rule that he was relieved from his position without due notice or without a three-month salary instead of the notice. He also requested he be compensated for a three-month salary worth USD 42,000, as per the agreement.
According to the tribunal's ruling on the case, an employment agreement was made by MIFCO with Lyubimov. However, the ruling states that the agreement was not signed by someone who had the authority to do so on MIFCO's side. This makes the agreement non-enforceable, as per the ruling.
The tribunal ruled that under a non-enforceable agreement, there is no right to any funds instead of a notice being given.
MIFCO issued a procedural point to the tribunal, stating the case cannot be pursued.
MIFCO questioned whether a Managing Director that is appointed as per company regulations is a position that is included in the base foundations of the Employment Act. They also questioned whether the tribunal can pursue a case where someone was relieved from such a position.
As per the tribunal's ruling regarding the matter, MIFCO had drafted an agreement with Lyubimov as per the Employment Act. While there are articles in the act that exempts people in senior positions, the tribunal said that if there is an agreement between the CEO and the company, all other articles in the act will apply to them.
And so, the tribunal's final decision was that they would take on the case.
Maldives Development Bank's former CEO and Managing Director Noel Gregor Paterson-Jones had gone to the Employment Tribunal over unpaid wages in the past. However, the bank had stated they had paid him his salary up until his resignation.
