Kritika 
(C): X
The majority of the owed amount to the former Petrofac employees in UAE has finally been received after six and a half months of uncertainty. In early June, the Petrofac 70% settlement was delivered and hundreds of laid off engineers, managers and support staff were given partial closure after a stressful wait, related to the company’s financial problems.
Most accepted 70% of its total dues as a full and final payout, a huge relief after several months of stress but a reminder of how easily worker compensation can be thrown out into the wind during corporate restructuring. Here is how it went, and what it means for the rights of workers in the UAE.
Former employees say most received the payout after months of pressure and talks https://t.co/PWAfcNa4Jz pic.twitter.com/gvjOeNcpnW
— Gulf News (@gulf_news) June 22, 2026
Quick Facts
| Topic | Details |
| Payout amount | Of the total dues, approximately 70% is paid as a complete and final payment. |
| Wait time | Nearly 6.5 months since November cutbacks |
| Payment dates | June 4–5, 2026 |
| Cause of layoffs | Contract cancellation of a wind power project in the North Sea between the Netherlands and Germany. |
| A primary factor in resolving a conflict | The UAE Ministry of Human Resources & Emiratisation apply pressure. |
| Linked event | Sale of Petrofac Emirates to new investors (completed May 26, 2026) |
What Triggered the Layoffs?
The rift started when the wind grid programme, which was a key project in the country’s engineering and construction portfolio, was scrapped on the Dutch-German offshore wind scheme. The UAE workers were informed their jobs were coming to an end and were sometimes notified with a single day’s notice. Those who had been with the company for many years, who had houses to pay off, school fees and end-of-service benefits to top up, were suddenly plunged into severe financial hardships.
That is where UAE labour disputes such as this become a little more complex; particularly, when the parent company is currently undergoing financial restructuring proceedings in another jurisdiction in parallel.
How the Settlement Came Together
Sustained pressure on many fronts led to the breakthrough, according to former employees. A group of affected workers took up a discussion with the Ministry of Human Resources and Emiratisation, which was linked to issues of unpaid dues and the possibility of the company’s money being transferred prior to claims being settled.
The fact that that pressure from the government and the sale process as a whole, with Petrofac Emirates, seems to have brought it to a head. The timing was not coincidental because the Petrofac creditors agreement and the sale to a new group of creditors was intended to generate a sense of urgency with regard to the need to settle the outstanding employee claims prior to the sale being implemented under the new owners.
What Workers Actually Received
| Category | Outcome |
| Standard employees | Full and final settlement of the dues will be paid at 70%. |
| Employees’ impact on end-of-service benefit (EOSB). | The majority experienced losses of EOSB value between 5% and 10%. |
| Those employees who were already on notice to resign prior to the layoff. | Others were given EOSB on top of notice-pay claims. |
| Expected vs. actual payout | There were many who had expected something more like 80%. |
Many were disappointed, but those who have been waiting too long are getting weary and accepting the situation. It was better to receive a partial payment rather than risk a potentially lengthy court battle with no assurance of any sort of settlement, as one former employee said.
More UAE Worker Stories You Should Read
Why Was The Visa Rejected?
Check out what affected workers should know after the hospital shutdown.
What Changes For Worker Welfare?
Find out how free internet access could improve daily life for workers.
Are Extreme Temperatures Taking Toll?
Uncover the health risks migrant workers face in harsh conditions.
Why Do Workers Prefer UAE?
Explore the factors making the UAE a top global job destination.
How Is UAE Protecting Workers?
Get to know the latest reforms aimed at safeguarding migrant employees.
Why This Matters Beyond Petrofac
It is a great real life example of the employment rights in the UAE during corporate distress. The following are some general lessons that can be applied to UAE construction workers and workers in other industries that have similar risk:
- Resolution can be accelerated by government intervention — ministry involvement was identified as a key enabler to getting the settlement process moving —
- Timing is important — claims that are related to a company’s sale or restructuring can be settled more quickly when there is a closing date.
- It’s not always possible to secure full recovery when a company enters financial difficulties — partial settlements are often the norm.
- There is the need to document — employees who can clearly demonstrate entitlement for notice-period and EOSB will be in a better negotiating position.
FAQs
Has everyone that worked for Petrofac UAE been paid 70% of their dues?
The majority of affected employees were paid about 70% as a final settlement, depending upon the time of their resignation and circumstances.
Where did end-of-service benefits go in this settlement?
The majority of workers ended up with a 70% settlement rather than going for the full amount, and they have lost 5-10% of their EOSB value as a result of this.
Did the UAE government have any part in this disagreement?
Yes — Ministry of Human Resources and Emiratisation pressure was mentioned by the ex-employees as a reason to move forward towards settlement.
Is this restructuring part of a larger change for Petrofac?
Yes — because the timing seems to be linked to the sale of Petrofac Emirates to a new group of investors, which would seem to have created an urgency to get outstanding employee claims settled.
Key Takeaways
- About 70% of Petrofac UAE staff’s dues were paid after six and a half months.
- The delay came after widespread job cuts linked to a scrapped offshore wind deal.
- It was finally made possible to establish the settlement with the help of ministry intervention.
- The majority of workers opted for a lower payout on end-of-service benefits in return for a certainty of retirement.
- The case brings attention to the continuing risks involved in delaying wages and workers’ compensation in the UAE in the context of corporate restructuring.
