Former employees said that most received the payout after months of pressure and negotiations.
Dubai: Former Petrofac employees in the UAE have received a significant portion of their outstanding dues, bringing an end to months of uncertainty for staff who were laid off with little notice after the company’s offshore wind contract setback pushed it into crisis.
Several former employees confirmed that payments were made on June 4 and 5, nearly six and a half months after the November layoffs, which left hundreds of workers uncertain about salaries, notice-period compensation and end-of-service benefits.
A former senior employee said most staff received around 70% of their outstanding dues as a full and final settlement after months of pressure, complaints and negotiations. The payout brought relief to employees who had spent months awaiting clarity on funds they believed were legally owed 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 for its continued coverage of the issue, saying it helped keep the matter in the public eye while they pursued recovery of their unpaid dues.
Relief after months of uncertainty
The payments brought 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 following the termination of Petrofac’s involvement in a Dutch–German 2GW offshore wind grid programme, a contract that had been central to the company’s engineering and construction business. Staff in the UAE said they were informed their roles were being ended, with the following day marking their last working day.
The abrupt departure created immediate financial strain for long-serving engineers, managers and support staff, many of whom had commitments such as school fees, mortgages, medical expenses and family obligations. Several employees had spent more than a decade at Petrofac and relied on end-of-service benefits as a key component of their long-term financial planning in the UAE.
The former senior employee said his own end-of-service benefit (EOSB) was paid in full, noting that his situation differed as he had resigned prior to the layoffs and was not entitled to additional notice-period compensation.
“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 engagement with 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 resolved.
One source said a group of former employees approached the ministry shortly after the layoffs, and that the intervention helped accelerate progress toward a settlement. Pressure reportedly intensified during the sale process linked to Petrofac Emirates, as employees feared that any transaction could leave their claims unsecured if dues were not properly ring-fenced.
The former senior employee said government intervention played a crucial role in resolving the matter.
According to the source, the settlement was linked to efforts to resolve the dispute ahead of Petrofac Emirates moving forward under new investors. He said employees believed the payment helped clear a key obstacle related to the future of the UAE business.
On May 26, 2026, Petrofac announced the 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. The company said Petrofac Emirates—home to its core engineering and construction capabilities in the UAE—will now operate as a self-sustaining business with no funded debt and strong growth prospects.
Tareq Kawash has been appointed CEO of Petrofac Emirates, bringing more than 30 years of international EPC leadership experience. Meanwhile, Afonso Reis e Sousa is set to step down following the completion of the sale of the group’s two principal divisions.
Most staff accepted the deal
The mood among former employees has largely shifted to relief, although some still feel the final settlement was lower than expected.
One source said many staff had initially expected around 80% of their total dues, based on earlier discussions that suggested an initial payment followed by a larger balance after the completion of the sale process. However, the final 70% settlement was accepted largely due to prolonged delays and a growing desire for certainty.
For many employees nearing retirement, even a partial payout came as significant relief, as the alternative was a lengthy legal and financial dispute with no assured outcome.
The former employee said the delay still came at a significant cost.
“Money delayed is money denied,” he said, adding that the company had effectively held employees’ funds for around six months before the settlement was reached.
Contacted Petrofac for comment on the payments and the settlement with former UAE employees, but the company declined to respond.
“Thank you for your enquiry. We are unable to comment on this at the present time,” the company said.
Petrofac had earlier told that operations across its UAE project portfolio were continuing, and that it remained focused on preserving value, maintaining operational capability, and ensuring delivery across its operating and trading entities.
The company had also previously confirmed that early-release notices were issued to employees whose roles were tied to the cancelled Dutch–German 2GW offshore wind grid programme.
