Abruptly laid off without settlement details, nearly 200 workers fear for their futures as the company’s financial collapse threatens their end-of-service benefits.
DUBAI, UAE – A sudden and poorly communicated mass layoff at Petrofac’s UAE operations has left nearly 200 former employees in a state of severe anxiety, with their legally mandated end-of-service benefits—collectively estimated at over Dh27 million—now in jeopardy.
The terminations, executed during a town hall on November 18, saw staff escorted from the premises immediately. While the company’s financial troubles were known, the failure to provide any timeline or clarity on gratuity payments has been described by affected staff as a breach of trust and UAE labor law.
“We Are Not Asking for Anything Extra”
“For 13 years, I served this company. We knew things were bad, but we never imagined they would withhold our gratuity,” shared one senior manager, who estimates he is owed more than Dh330,000. “This isn’t a bonus; it’s what the law guarantees us.”
The lack of transparency is a universal complaint. Employees report that all inquiries are met with a standard “We are looking into it” response, fostering a belief that the payments may not materialize.
Mounting Personal Debts Amid Corporate Crisis
The human cost of the corporate collapse is becoming starkly clear. Many of the terminated employees are now grappling with how to meet existing financial commitments, including home loans, car EMIs, and children’s school fees, without their end-of-service settlements.
“How do we survive without our gratuity? How do we pay our loans?” questioned one employee, echoing the concerns of many. While their visas have been extended for two months, this does little to address the immediate financial void left by the unpaid dues.
The layoffs come in the wake of Petrofac’s holding company entering administration after a critical €2 billion contract fell through. Despite a company statement assuring that “operations across its UAE project portfolio are continuing as normal,” for the nearly 200 dismissed workers, the focus remains on a desperate fight for the financial security they earned.
