Petrofac Workers Face Uncertain Future

Where Is Our Severance Pay? – Over 200 Petrofac Workers in Uncertainty in UAE

Many Petrofac employees working in the United Arab Emirates were not surprised by the layoffs, but no one anticipated that communication would entirely break down regarding the long-promised severance pays, leave compensations, and other benefits. The situation has now escalated into not only a financial issue but also a significant human and legal problem. Affected workers estimate the company may owe its employees more than 27 million dirhams – this amount covers basic benefits for years of work.

A Predictable Crisis, Withholding Responses

Petrofac has previously struggled with financial difficulties, confirmed by several employees in senior positions. The news of the layoffs was conveyed at an internal town hall meeting on November 18, where approximately 200 employees were informed that their positions would be terminated. Many had to leave their workplace immediately that day, without notice or a notice period.

The biggest problem, however, was not just the job loss but the complete lack of information. The majority of the dismissed employees still don't know when – or if – they will receive their severance pay. One employee, who has been with the company for 13 years, stated that the management “completely disregards the laws and ethical principles.”

Entitlement According to the Law

The UAE labor regulations clearly state that employees are entitled to severance pay upon the termination of employment. The amount can be significant, depending on the length of service and the type of contract. One affected employee claims more than 330,000 dirhams, while others mention even larger sums, up to 734,000 dirhams. They seek nothing more than what the laws guarantee them.

Petrofac's financial issues were previously revealed to the public. On October 27, the company announced it had filed for insolvency proceedings with the High Court of England and Wales after a 2 billion euro offshore wind project with Dutch TenneT was canceled. This project would have played a crucial role in the company’s debt restructuring plan, and its loss fundamentally shook the stability of the enterprise.

Uncertain Future, Significant Existential Risks

Another employee, who has been with the company for over ten years, said it was already possible to foresee the layoffs weeks earlier. Many workers began looking for other jobs in advance, but only a few have managed to secure new employment. The vast majority of the laid-off employees are now trying to rebuild their lives as unemployed workers – uncertain if they will ever receive the amounts due to them.

Many are worried not only about the missed severances but also about their current financial obligations. Some are tied up with mortgage payments, others are burdened with healthcare expenses, and remittances to foreign family members have ceased. One employee noted: “If you lose your job, severance is the only guarantee that can bridge this period. But if we don't get that, we're entirely on our own.”

The Company's Response and Two-Month Residency Permit

The company claims that its UAE project portfolios are still operational and that it is focusing on maintaining the company's long-term viability. Employees have been allowed to remain in the UAE for an additional two months, giving them time to seek new job opportunities. However, many see this as merely a superficial gesture since the most pressing issue – the money – remains unanswered.

One of them phrased it this way: “How do we survive without severance pay? How do we pay our loans? How do we send money home? The company owes us not only money but answers.”

Law, Ethics, Humanity

The case of Petrofac is not unique, but it is a particularly severe example of the consequences when a company fails to adhere to basic legal and human standards. Employees not only lost their jobs but also their trust in their company – and with it, in many cases, their livelihood.

The story serves as a warning to other companies as well, especially in a country where labor laws provide clear frameworks for severance and employee protection. Complying with these rules is not only a legal obligation but a moral one – especially when people's futures are at stake.

Summary

Former Petrofac employees currently live in complete uncertainty, while the fate of tens of millions of dirhams of unpaid severance depends on the company's decisions. The story goes beyond a financial dispute: it affects people's lives, family security, and raises the question of how much trust one can have in employer promises during a crisis. Severance is not a reward – it is the most basic right owed to every employee.

(Sources based on Petrofac layoffs.)