(MENAFN- Khaleej Times)

Nearly 200 Petrofac employees in the UAE said they have been left in the dark about their end-of-service benefits after a sudden wave of layoffs, leaving many anxious about their future and worried that years of service may go unpaid. Based on what staff members are personally owed, some estimate the total unpaid gratuity could exceed Dh27 million.

The layoffs were announced during a town hall meeting on Tuesday (November 18), where employees were informed their positions were no longer needed. Several workers said they were asked to clear their desks and leave immediately without serving their notice period. The lack of communication and clear answers on gratuity or settlements has left them feeling abandoned - especially as many shoulder significant financial responsibilities.

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'(We) saw this coming'

Petrofac had been showing signs of financial strain for months, said a senior manager who has worked at the company for 13 years and requested anonymity.

“We knew the company was going through a bad financial phase. A few of our colleagues had already resigned because they saw this coming,” he said.“But layoffs still have to be done properly. There is a law, and there are ethics. None of that is being followed here.”

He said that while employees were mentally prepared for job losses, they never expected the company to withhold information about gratuity, leave balances, or final settlements.

“Nearly 200 people were fired, yet not a single person has been told when their end-of-service benefits will be paid. We even asked about it during the town hall. It was very clear that they have no intention to pay anytime soon,” said the employee who claims to be owed more than $90,000 (Dh330,525) in gratuity.

“They only gave me a partial amount. Some employees are owed nearly $200,000 (Dh734,500). We are not asking for anything extra, just what the law guarantees us.”

On October 27, Petrofac said its board had applied to the High Court of England and Wales to appoint administrators to its holding company after Dutch grid operator TenneT cancelled a major offshore wind contract in the Netherlands. The €2 billion (Dh7.8 billion) project had been central to a debt-restructuring plan already in difficulty.

No clarity on dues

Another employee, who has been with Petrofac for more than a decade, said the staff had been searching for jobs for over a month after management hinted at impending cuts.

“People were applying everywhere because management kept giving signals that layoffs were coming. Only a few of us managed to find alternative jobs. The rest were told to leave with no clarity on their dues.”

He estimated his own gratuity to be around Dh600,000, adding that collectively, terminated employees may be owed more than Dh27 million.

“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.”

'We will look into it'

A third employee, who recently completed six years at the company, said he repeatedly contacted the management for clarity on his gratuity, which is over Dh100,000.

“The only response we get is 'We are looking into it.' Many of us now believe we won't receive anything,” he said.

He added that staff members are struggling because of financial obligations such as loans, EMI (equated monthly installments), and medical costs.“When someone resigns or is terminated, gratuity is a basic right protected by UAE law. But right now, it feels like everything is being ignored.”

Visas extended, but uncertainty remains

Employees said the company has allowed them to stay in the UAE on their visas for an additional two months - giving them time to search for new jobs. But many say this does little to ease their stress, as unpaid dues remain their biggest worry.

“How do we survive without our gratuity? How do we send money home? How do we pay our loans?” one employee asked.“The company owes us answers.”

In a statement to UAE media on Wednesday (November 19), Petrofac said,“Delivery of Petrofac's operations across its UAE project portfolio is continuing as normal. Petrofac is focused on preserving value, operational capability, and ongoing delivery across the Group's operating and trading entities while options are being advanced to underpin their long-term future.

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