Days after almost 200 staff were laid off from Petrofac UAE, a British international energy services company, reports state that the unpaid gratuity owed to the staff could exceed AED 27 million. However, much to the concern of the laid off employees, the company is yet to give them a clear answer on gratuity or settlements.
Petrofac was forced to lay off employees after it lost a a two-gigawatt Dutch offshore wind transmission programme, pushing the group to cut off staff during a Town Hall meeting on November 18. They were told that their roles were ending, with November 19 set as their last working day.
However, employees said the company failed to follow rules or ethics. “We knew the company was going through a bad financial phase. A few of our colleagues had already resigned because they saw this coming. But layoffs still have to be done properly. There is a law, and there are ethics. None of that is being followed here,” an employee told Khaleej Times.
The report added that he estimated his own gratuity to be around Dh600,000, adding that collectively, terminated employees may be owed more than Dh27 million.
“We know businesses face ups and downs, but they still need to follow proper procedures. We just want what we have earned over the years.”
The employees alleged that not a single person was told when their end-of-service benefits would be paid, and they feel “it was clear that the company had no intention to pay them anytime soon. “They only gave me a partial amount. Some employees are owed nearly $200,000 (Dh734,500). We are not asking for anything extra, just what the law guarantees us,” an employee told Khaleej Times.
There are reports that Internal HR emails indicated that November salaries will be paid only for days worked up to the 18th or 19th, and instructed staff to clear desks, return IT equipment, and update personal contact details. There was no word of the end-of-the service payouts.
However, Arabian Business reported that some staff were planning to approach the Ministry of Human Resources and Emiratisation (MOHRE) against this. However, many are concerned about potential issues related to insolvency.
The report quoted another manager who cited an internal Q&A which stated Petrofac’s EOS liability in the UAE is roughly $65 million and that the company “does not have the funds to pay that out all at once.”