Petrofac Fires 200 Staff in UAE Amid Concerns Over Unpaid End-of-Service Benefits

Following a sudden wave of layoffs, nearly 200 Petrofac employees in the United Arab Emirates said they were unaware of their end-of-service benefits, leaving many fearing for their future and fearing years of service would go unfunded. Some estimate that the entire amount of unpaid gratuity could surpass Dh27 million, based on what employees personally owe.

During a town hall meeting on November 18, the layoffs were announced, informing the staff that their positions were no longer needed. A number of employees said that they were asked to clear their desks and depart right away without fulfilling their notice obligations. They feel abandoned because of the lack of contact and unambiguous responses regarding gratuities or settlements, especially because many of them have substantial financial obligations.

What Led to a Layoffs?

According to a senior manager who has been with Petrofac for 13 years, the company has been displaying financial distress for months. He claimed that the business was going through a difficult financial period. Some of its coworkers had already quit because they anticipated this. Layoffs must still be carried out correctly, though.

He claimed that although workers were mentally ready to lose their jobs, they never anticipated that the business would conceal information about final settlements, leave balances, or gratuities. Following the cancellation of a significant offshore wind contract in the Netherlands by Dutch grid operator TenneT, Petrofac said on October 27 that its board had petitioned the High Court of England and Wales to designate administrators to its holding company. The €2 billion (Dh7.8 billion) project was at the heart of a struggling debt restructuring proposal.

No Timeline for Clearance of Dues

Another worker, who has worked for Petrofac for over ten years, claimed that after management made hints about upcoming layoffs, the crew had been looking for work for more than a month. He calculated that his own gratuity was approximately Dh600,000, and he added that the total amount payable to fired staff might exceed Dh27 million. A third worker, who just finished six years with the company, claimed that he kept contacting management to get clarification on his gratuity, which is more than Dh100,000.

He continued by saying that financial commitments like loans, EMI (equated monthly instalments), and medical expenses are causing staff members to struggle. Workers said that the corporation had granted them an extension of two months to remain in the United Arab Emirates on their visas, allowing them to look for other employment. However, many claim that this does little to reduce their stress because their major concern is still outstanding bills.

Petrofac stated in a statement to UAE media on November 19 that the company's operations throughout its portfolio of UAE projects are being delivered as usual. While options are being explored to support their long-term future, Petrofac is concentrated on maintaining value, operational capability, and continuous delivery throughout the Group's trading and operating units.