Petrofac UAE staff get 70% dues after six-month wait

Dubai: Former Petrofac employees in the UAE have received a major portion of their outstanding dues, ending months of uncertainty for staff who were laid off with little notice after the company’s offshore wind contract setback pushed the group into crisis.

Several former employees confirmed to Gulf News that payments were made on June 4 and June 5, nearly six and a half months after the November layoffs that left hundreds of workers worried about salaries, notice-period pay and end-of-service benefits.

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.

The payments offered relief in a dispute that had left former staff fearing they might not recover their end-of-service benefits, particularly after Petrofac’s holding company entered court-supervised administration in the UK.

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.”

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.

According to the source, the settlement was linked to efforts to resolve the dispute before Petrofac Emirates proceeded under new investors. He said employees believed the payment helped remove a major obstacle around the future of the UAE business.

On May 26, 2026, Petrofac announced the successful completion of the sale of Petrofac Emirates to a consortium of financial investors led by Mason Capital Management and Pearlstone Alternative (UK), after all required conditions and approvals were met. Petrofac said Petrofac Emirates, which houses the group’s core Engineering and Construction capability in the UAE, will now operate as a self-sustaining business with no funded debt on its balance sheet and significant growth opportunities. Tareq Kawash has been appointed CEO of Petrofac Emirates, bringing more than 30 years of international EPC leadership experience to the role, while Afonso Reis e Sousa will step down as Petrofac Group CFO following completion of the sale of the group’s two principal divisions.

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.