Former MIFCO CEO Vitaliy Lyubimov denied notice pay as Tribunal finds no basis for compensation

The Employment Tribunal has ruled that former MIFCO CEO and Managing Director Dr Vitaliy Lyubimov is not entitled to compensation for his dismissal, rejecting his claim that he was removed without notice.

Lyubimov, a foreign national appointed as MIFCO’s CEO on 10 December 2024, was dismissed by the Privatisation and Corporatisation Board (PCB) on March 3, 2025, less than three months after taking office. PCB did not disclose the reason for his removal.

On 17 March, Lyubimov filed a case at the Employment Tribunal alleging that he was dismissed without prior notice and without payment in lieu of notice. He asked the tribunal to declare that he was owed three months’ salary, amounting to USD 42,000, under the terms of his employment agreement.

The Tribunal, however, ruled on Wednesday that there was no legal basis to award compensation. The judgment stated that Lyubimov had not established entitlement to notice pay under the governing regulations.

During the proceedings, MIFCO also argued that the matter fell outside the Tribunal’s jurisdiction. The Tribunal rejected that procedural objection and held that the case could be heard, but ultimately dismissed Lyubimov’s claim.

Lyubimov was appointed after the government announced its intention to hire a foreign CEO to restructure MIFCO, which has faced long-standing financial losses. President Dr Mohamed Muizzu had previously pledged to eliminate corruption within the company and strengthen its management.

Shortly after assuming office, Lyubimov publicly stated that he would not allow political influence in MIFCO and warned that he would reveal the names of individuals attempting to exert such pressure.

Although the Tribunal did not comment on the circumstances surrounding Lyubimov’s removal, his prospects for compensation were always slim. CEO contracts in state‑owned enterprises typically allow termination without cause, and PCB decisions carry strong legal weight. Lyubimov’s brief tenure and his public stance against political influence in MIFCO also placed him at odds with the realities of SOE governance, making a favourable ruling unlikely.

A similar case is currently before the Tribunal from former Development Bank of Maldives (DBM) CEO Noel Gregory Patterson Jones, who is also seeking notice pay following his dismissal.