One former senior employee said most staff received about 70% of what they were owed as a full and final settlement after months of pressure, complaints and negotiations. The payout offered relief to employees who had spent months waiting for clarity on money they considered legally due after years of service.
“We got 70% of what they owed us, but then most of us, the critical mass, we decided that 70% was, you know, good enough,” he said. “It’s better we take the one bird in hand rather than strive for two in the bush.”
Several former employees thanked Gulf News for its attention to the matter and continued coverage, saying it helped keep the issue visible while staff pursued their unpaid dues.
Relief after months of uncertainty
Employees were laid off in November after the termination of Petrofac’s role on a Dutch-German 2GW offshore wind grid programme, a contract that had been central to the company’s engineering and construction revenue. Staff in the UAE said they were told that their roles were ending, with the following day set as their last working day.
The abrupt exit created immediate financial pressure for long-serving engineers, managers and support staff, many of whom said they had school fees, mortgages, medical expenses and family commitments. Several had worked at Petrofac for more than a decade and saw end-of-service benefits as a core part of their financial planning in the UAE.
The former senior employee said his own end-of-service benefit was paid in full, although his case was slightly different because he had already resigned before the layoffs and did not claim the remaining notice-period payment.
“My end of service benefit I got in full, but that’s just me speaking for myself,” he said. “Most other people, I think, they lost about 5% to 10% of the EOSB in having accepted the 70% as full and final settlement.”
Government pressure played a role
Former employees said the settlement followed sustained pressure through the Ministry of Human Resources and Emiratisation after workers raised concerns over unpaid dues and the risk that funds could be moved before claims were settled.
One source said a group of former employees approached the ministry soon after the layoffs and that the intervention helped push the matter towards settlement. The pressure became more urgent after the sale process linked to Petrofac Emirates, with employees fearing that any transaction could leave them exposed if their dues were not ring-fenced.
The former senior employee said government intervention was critical in bringing the matter to a close.
Most staff accepted the deal
The mood among former employees has turned to relief, although several still feel the final settlement fell short of what they had expected.
One source said many employees had previously believed they might receive around 80% of their total dues, after earlier discussions suggested an upfront payment and a larger balance after the sale process. The final 70% settlement was accepted mainly because workers were exhausted by the delay and wanted certainty.
For many employees close to retirement, even a partial settlement was a significant relief because the alternative was a prolonged legal and financial battle with no guaranteed outcome.
The former employee said the delay still carried a heavy cost.
“Money delayed is money denied,” he said, adding that the company had effectively held staff money for about half a year before the settlement was made.
Gulf News reached out to Petrofac for comment on the payments and the settlement reached with former UAE employees, but the company declined to comment.
“Thank you for your enquiry. We are unable to comment on this at the present time,” the company said.
Petrofac had earlier told Gulf News that operations on its UAE project portfolio were continuing and that it was focused on preserving value, operational capability and delivery across its operating and trading entities.
The company had also previously confirmed that early-release notices were issued to employees whose roles were connected to the terminated Dutch-German 2GW offshore wind programme.
Nivetha Dayanand is Assistant Business Editor at Gulf News, where she spends her days unpacking money, markets, aviation, and the big shifts shaping life in the Gulf. Before returning to Gulf News, she launched Finance Middle East, complete with a podcast and video series.
Her reporting has taken her from breaking spot news to long-form features and high-profile interviews. Nivetha has interviewed Prince Khaled bin Alwaleed Al Saud, Indian ministers Hardeep Singh Puri and N. Chandrababu Naidu, IMF’s Jihad Azour, and a long list of CEOs, regulators, and founders who are reshaping the region’s economy.
An Erasmus Mundus journalism alum, Nivetha has shared classrooms and newsrooms with journalists from more than 40 countries, which probably explains her weakness for data, context, and a good follow-up question.
When she is away from her keyboard (AFK), you are most likely to find her at the gym with an Eminem playlist, bingeing One Piece, or exploring games on her PS5.
