By JobXDubai Team | November 24, 2025
A sudden wave of layoffs at energy giant Petrofac has left nearly 200 employees in the UAE facing an uncertain future. In a move that has sent shockwaves through the local energy sector, staff were informed during a town hall meeting that their positions were no longer needed and were asked to clear their desks immediately.
But the immediate job loss is only half the story. The greater anxiety stems from a complete lack of clarity regarding End of Service Benefits (Gratuity), with staff estimating that millions of dirhams are currently in limbo.
Here is what we know about the situation and the legal rights of employees facing similar crises.
The Financial Strain
The layoffs come after months of financial turbulence for the UK-based company. On October 27, Petrofac’s board applied to appoint administrators after losing a critical €2 billion (Dh7.8 billion) offshore wind contract in the Netherlands.
While some employees “saw this coming” due to the company’s debt restructuring struggles, the execution of the layoffs has drawn sharp criticism.
“Layoffs still have to be done properly. There is a law, and there are ethics. None of that is being followed here.” — Senior Manager (Anonymous)
The Gratuity Gap: Dh27 Million in Limbo
The most pressing concern for the terminated staff is their unpaid dues. Employees report that management has provided no timeline for when—or if—their gratuity will be paid.
The numbers are staggering:
- Individual claims range from $90,000 (Dh330,000) to nearly $200,000 (Dh734,000).
- Collectively, staff estimate the total unpaid amount could exceed Dh27 million.
For many, this money is not a bonus; it is a lifeline used to pay off loans, mortgages, and support families back home.
Legal Context: Your Rights Matter
Under UAE Labour Law, gratuity is a fundamental right, not a discretionary perk. When an employee is terminated, they are entitled to:
- Immediate Settlement: All wages and benefits should be paid upon termination.
- Notice Period Pay: Even if asked to leave immediately, employees must be paid for their notice period.
- Arbitrary Dismissal Compensation: If the termination is deemed “arbitrary” (without valid performance or disciplinary reasons), employees may claim up to 3 months’ salary.
If you are facing a similar situation, it is vital to understand the legal grounds for compensation. Read our guide on UAE Employer Compensation Claims to know what evidence you need.
Additionally, if your gratuity is being withheld due to company debt or restructuring, check our specific guide on When Can Your Employer Deduct Your UAE End-of-Service Gratuity?.
“We Are Looking Into It”
Despite the legal protections, communication from Petrofac has been reportedly vague. Employees seeking answers about their dues are met with the response, “We are looking into it.”
While the company has extended visas for two months to allow staff to find new jobs, the financial uncertainty remains a heavy burden.
“How do we survive without our gratuity? How do we send money home? The company owes us answers.” — Terminated Employee
What Should Affected Employees Do?
If you are affected by these layoffs or similar ones:
- File a Complaint: Immediately file a case with the Ministry of Human Resources and Emiratisation (MoHRE).
- Don’t Sign Waivers: Do not sign any document stating you have received your dues if you haven’t.
- Check for Unpaid Salaries: If your salary is also delayed, use the confidential reporting channels. See our guide: How to Report Unpaid Salaries Anonymously in the UAE.
Key Takeaway
The Petrofac crisis highlights the vulnerability of employees during corporate restructuring. While the company navigates its financial collapse, nearly 200 UAE families are left waiting for Dh27 million in legally owed benefits. Affected employees are urged to seek legal recourse through MoHRE immediately.
Further Reading:
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