Nearly 200 employees of Petrofac in the UAE are facing uncertainty and financial distress as the company has failed to provide clarity on their end-of-service benefits following a sudden wave of layoffs. The employees, many of whom have served the company for over a decade, estimate that the total unpaid gratuity could exceed Dh27 million. The layoffs were announced during a town hall meeting on November 18, where workers were informed their positions were no longer needed and were asked to leave immediately without serving their notice period. This abrupt decision has left employees feeling abandoned, especially as many are burdened with significant financial responsibilities such as loans, EMIs, and medical costs. A senior manager, who has been with the company for 13 years, revealed that Petrofac had been showing signs of financial strain for months, with some employees resigning in anticipation of the layoffs. However, the lack of communication and transparency regarding gratuity payments has exacerbated the situation. Employees have repeatedly sought clarity from management, but the only response they receive is that the company is ‘looking into it.’ While Petrofac has extended employee visas for an additional two months to allow them to search for new jobs, this gesture does little to alleviate their concerns about unpaid dues. The company’s financial troubles worsened after Dutch grid operator TenneT canceled a major offshore wind contract in the Netherlands, which was central to Petrofac’s debt-restructuring plan. In a statement, Petrofac assured that its UAE operations are continuing as normal, but employees remain skeptical about receiving their rightful benefits.
‘Where is our gratuity?’: UAE Petrofac staff say unpaid dues could exceed Dh27 million
