Massive Layoffs Shock the Energy Sector
The oilfield services company Petrofac has terminated nearly 200 employees in the UAE, sparking anger and uncertainty over unpaid end-of-service benefits (EOSB). According to Gulf News, engineers and project managers were dismissed with just one day’s notice, following the termination of a major European offshore wind project that had underpinned much of the company’s engineering and construction business.
This latest round of Petrofac UAE staff layoffs comes as the company undergoes court-supervised administration in the UK, raising serious concerns among employees about whether their legally mandated EOSB will ever be paid.
One-Day Notice and No Clear Payout Plan
Sources close to the matter revealed that staff were informed of their dismissal on November 18, with November 19 designated as their final working day. Employees were told that their salaries would only be paid up to that date, with no clarity on notice periods, gratuity, or end-of-service entitlements.
“We were given our notice in one day,” said one senior project director. “We asked about our notice period and EOSB. No one could give us an answer.”
Many long-serving employees—some with over 20 years at Petrofac—were left in shock. Several described the atmosphere as “emotional and chaotic,” with colleagues saying goodbye while returning company equipment and access cards.
Petrofac UAE Layoffs Linked to Dutch Wind Contract Collapse
The Petrofac UAE layoffs stem from the sudden termination of the company’s $14 billion offshore wind grid contract with Dutch-German operator TenneT, which accounted for over 80% of Petrofac’s engineering and construction revenue.
When the financial restructuring milestones were missed, TenneT pulled the plug, forcing Petrofac into insolvency. Since then, the administrator appointed in the UK has been restructuring operations, prioritizing asset sales and cost-cutting measures across global offices—including the UAE, India, and Malaysia.
A senior manager estimated that up to 70% of Petrofac’s UAE workforce could eventually lose their jobs.
End-of-Service Benefits in Jeopardy
The biggest fear among the dismissed staff is that end-of-service benefits will not be paid. Many believe that as Petrofac moves its funds out of the UAE and consolidates its assets in the UK, employee payouts will be deprioritized or written off entirely.
“We have single parents and people who’ve spent decades here,” one manager said. “The concern is not losing the job—it’s losing the end-of-service money we’ve earned.”
Some employees have already filed complaints with the Ministry of Human Resources and Emiratisation (MOHRE), asking authorities to freeze Petrofac’s local accounts until the EOSB payments are guaranteed.
MOHRE has reportedly warned Petrofac that as long as the company remains operational in the UAE, it must fulfill all obligations under UAE labor law, including EOSB payments.
Petrofac’s Response
In an official statement to Gulf News, Petrofac said it continues to operate normally in the UAE and that it is “focused on preserving value, operational capability, and ongoing project delivery.”
The company confirmed that early-release notices were issued to employees tied to the terminated TenneT project, stating:
“We recognise this is a challenging time for our people and we remain in close coordination with them and MOHRE.”
However, the statement offered no direct assurance regarding EOSB payments, further fueling worker concerns.
Broader Impact on the Energy Sector
The Petrofac UAE staff layoffs highlight the growing financial strain on engineering and construction firms tied to the renewable energy sector. As companies take on high-risk infrastructure projects amid tight cash flows, employees often bear the brunt of corporate restructuring and insolvency proceedings.
Industry experts warn that without regulatory safeguards, more multinational firms operating in the UAE could face scrutiny over how they handle staff terminations and end-of-service obligations.
For many Petrofac workers, the issue goes beyond lost jobs—it’s about trust and accountability in a company that once stood as a major employer in the Middle East energy market.
“Losing the job is part of business,” said one engineer. “But the least they can do is release people decently, pay the notice period, and honor their service.”
Conclusion
The Petrofac UAE layoffs mark one of the most abrupt mass terminations in the region’s energy industry this year, leaving hundreds uncertain about their future and unpaid dues. As investigations continue and employee complaints mount, the company faces growing pressure to uphold its commitments under UAE labor law.For more updates on corporate developments, employment trends, and energy industry news, visit StartupNews.fyi.
