Dubai, UAE – Anxiety is mounting among nearly 200 Petrofac employees in the UAE following a sudden wave of layoffs, raising serious concerns about whether the company will honor its end-of-service (EOS) obligations. According to internal estimates shared by staff, unpaid gratuity dues could total more than Dh27 million.
Abrupt Terminations and Missing Clarity
The mass layoff was announced during a town hall meeting on November 18, where employees were told their roles were being terminated. Several sources say they were asked to pack up immediately – laptops, access cards, and ID badges were collected the very next day – without a clear notice period.
Many employees reported that they were only paid their salaries through November 19, with no confirmation on when, or even if, their EOS benefits would be settled.
Staff say there has been no transparency on final settlements, leave balances, or gratitude payments – leaving long-serving workers deeply uncertain.
Mounting Financial Worries
Several affected workers claim they are owed significant sums. One employee, who has reportedly spent over a decade at Petrofac, said his gratuity alone could be around Dh600,000.
The financial instability is placing a strain on families. Some laid-off staff say they are servicing high EMIs, supporting dependents, and managing medical costs – all without knowing when their dues will be paid.
Legal and Administrative Red Flags
According to sources, employees believe that, as Petrofac’s UK holding company undergoes court-supervised administration, funds may be repatriated out of the UAE – potentially jeopardizing EOS payments.
Several workers have filed complaints with the Ministry of Human Resources and Emiratisation (MOHRE), requesting the authority to safeguard their end-of-service entitlements.
At least one labor official has reportedly visited Petrofac’s HR to demand accountability.
Roots in a Win d-Project Collapse
The layoffs stem from Petrofac losing a major 2 GW offshore wind contract awarded by Dutch grid operator TenneT, which was central to its restructuring plan.
After TenneT terminated the contract, Petrofac’s holding company applied to the High Court of England and Wales to appoint administrators.
In internal communications, Petrofac reportedly said that the total EOS liability in the UAE is “roughly $65 million” (approximately Dh239 million), and cautioned that it may not be able to pay all at once.
Petrofac’s Response
In response to employee concerns, Petrofac issued a statement affirming that its “UAE operations continue as normal” and that it remains focused on “preserving value, operational capability, and ongoing delivery” across its business.
The company also confirmed that early-release notices were issued specifically to staff involved in the wind-program roles.
According to internal HR emails reviewed by media, November salaries will be paid by November 21, and medical insurance will be extended for up to three months.
Petrofac said it is coordinating with MOHRE but, so far, has not committed to a concrete timeline for EOS payments.
What’s Next?
Employees are now weighing legal options. Some say they may escalate their complaints to MOHRE or seek legal recourse to ensure their EOS payments are protected, particularly as administrators decide on restructuring strategies.
The situation underscores the human cost of Petrofac’s financial distress – not just in lost jobs, but in the very real threat that workers may be denied the end-of-service benefits they are legally owed under UAE labor law.
