Nearly 200 terminated employees claim they were dismissed without clarity on their end-of-service settlements, leaving many in financial distress and questioning the company’s adherence to UAE law.
UAE – Nearly 200 employees of global energy giant Petrofac in the UAE are in a state of financial limbo after being abruptly laid off without confirmation of their end-of-service benefits, with initial estimates suggesting total unpaid gratuity could exceed Dh27 million.
The terminations were announced during a town hall meeting on November 18, where staff were informed their roles were redundant. According to multiple accounts, employees were instructed to leave immediately without serving their notice period and were given no information on the payment of their gratuity or accrued leave balances.
“We Saw This Coming, But Not This”
While employees acknowledged the company’s known financial troubles, the handling of the layoffs has sparked anger and anxiety.
“We knew the company was going through a bad financial phase… But layoffs still have to be done properly. There is a law, and there are ethics. None of that is being followed here,” said a senior manager with 13 years at Petrofac, who requested anonymity.
He claimed to be owed over Dh330,000 in gratuity and stated that during the town hall, it was “very clear that they have no intention to pay anytime soon.”
Another long-serving employee estimated his own unpaid gratuity at approximately Dh600,000. “We know businesses face ups and downs, but they still need to follow proper procedures. We just want what we have earned over the years,” he said.
Financial Strain and Vague Responses
The lack of settlement has placed many in a precarious position, with financial obligations like loans, children’s education, and medical costs adding to the stress.
A third employee, owed over Dh100,000, said all inquiries to management have been met with the same vague response: “We are looking into it.” This has led to growing fears among the staff that they may not receive their legally mandated dues at all.
The layoffs follow Petrofac’s recent financial collapse. On October 27, the company’s holding company applied for administration in a UK court after a critical €2 billion contract with Dutch operator TenneT was cancelled, derailing its debt-restructuring plan.
While Petrofac has extended employee visas for two months to aid their job search, this gesture offers little solace. “How do we survive without our gratuity? How do we pay our loans?” one employee asked.
In a statement to UAE media, Petrofac said its UAE operations are “continuing as normal” and that it is “focused on preserving value.” However, for the nearly 200 terminated workers, the focus remains on securing the earnings they are owed after years of service.
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