Petrofac UAE Staff Receive 70% of Outstanding Dues After Six-Month Wait

Former employees of Petrofac’s UAE arm have received a large portion of the salaries, notice‑period payments and end‑of‑service benefits that were left unpaid after the company’s November 2025 layoffs. Payments were made on 4 and 5 June 2026, almost six and a half months after workers were dismissed with little notice following the loss of a key offshore‑wind contract.

The settlement, which covers roughly 70 % of the amounts owed, ended months of uncertainty for hundreds of engineers, managers and support staff who had been left without clear information on when or how they would receive their legal entitlements. According to reports, the payout was accepted by a critical mass of former employees as a full and final settlement.

The layoffs were triggered by the termination of Petrofac’s role on a Dutch‑German 2 GW offshore wind grid programme, a contract that had been a major source of engineering and construction revenue for the company. Employees were informed that their positions were ending, with the next day set as their final working day. The abrupt nature of the dismissals created immediate financial pressure for long‑serving staff who had mortgages, school fees and other commitments.

Many of the affected workers had been with Petrofac for more than a decade and viewed their end‑of‑service benefits as a key part of their financial planning in the UAE. One former senior employee said his own end‑of‑service benefit was paid in full, but that he had already resigned before the layoffs and therefore did not claim the remaining notice‑period payment. He added that most of his colleagues lost about 5 % to 10 % of their end‑of‑service benefits when they accepted the 70 % settlement.

The dispute was brought to a close after sustained pressure through the Ministry of Human Resources and Emiratisation (MoHRE). According to a source, a group of former employees approached the ministry shortly after the layoffs and the intervention helped move the matter toward settlement. The urgency increased during the sale process of Petrofac Emirates, as employees feared that their claims could be compromised if the business was transferred without protection.

The settlement was linked to efforts to resolve the dispute before Petrofac Emirates moved forward under new investors. The sale of Petrofac Emirates was completed on 26 May 2026 to a consortium of financial investors led by Mason Capital Management and Pearlstone Alternative UK. Petrofac said the transaction was completed after all required conditions and approvals had been met. The UAE‑based business will now operate as a self‑sustaining entity with no funded debt on its balance sheet and with significant growth opportunities.

Tareq Kawash has been appointed CEO of Petrofac Emirates, bringing more than 30 years of international engineering, procurement and construction leadership experience to the role. Afonso Reis e Sousa will step down as Petrofac Group CFO following the completion of the sale of the group’s two principal divisions.

The payout and the sale of Petrofac Emirates remove a significant obstacle surrounding the future of the UAE business. Employees who received the settlement said it provided closure and removed uncertainty about their financial rights. The settlement also demonstrates the role of MoHRE in protecting workers’ rights during corporate restructurings.

The resolution comes at a time when the UAE has introduced new wage‑protection rules that require private‑sector employers to pay salaries on the first day of each month. The new regulations, effective from 1 June 2026, aim to reduce delayed payments and increase transparency in the labour market.

In summary, former Petrofac employees in the UAE have received a major portion of their outstanding dues, ending months of uncertainty that began with the company’s November 2025 layoffs. The settlement, facilitated by MoHRE and linked to the sale of Petrofac Emirates, provides a clear path forward for the business and its former staff.