Petrofac Layoffs Raise Questions Over Termination Pay and Employee Entitlements
Former Petrofac employees say they received salary for 19 days worked in November following their termination on November 19, while key end-of-service benefits and notice-period entitlements remain unclear. The situation has prompted legal and contractual questions under UAE labour rules.
Petrofac Termination Pay Issues Prompt Legal Questions
Former Petrofac employees affected by the company’s November 19 layoffs say they have received payment for the 19 days worked during November, confirming the first portion of their final dues.
The matter gained attention after workers reported uncertainty surrounding remaining settlement components, including notice-period pay, gratuity, leave encashments, and other contractual entitlements under UAE labour regulations.
The issue concerns staff who were notified that November 19 would be their final working day amid ongoing restructuring at the company.
Employees told reporters they are awaiting a formal statement of account that Petrofac indicated would be issued within 14 days of termination.
The absence of written clarity has raised questions about compliance with statutory requirements, employer obligations at termination, and the timelines for processing end-of-service payments.
The situation carries broader public-interest implications, particularly for financial security, labour standards, and transparency in corporate restructuring processes.
What We Know So Far
Employees confirmed they received salary corresponding only to the 19 days worked in November, matching the termination date communicated earlier in the month.
Several workers said they had expected additional settlement components to be processed simultaneously but were told these would follow.
Former staff members reported that Petrofac advised them a full statement of account would be issued within 14 days of the termination date. This document is expected to outline all dues, including end-of-service benefits and any remaining contractual payments.
Employees said they are waiting for this written statement before assessing the completeness of their entitlements. They indicated that no official clarification had been provided about the status of notice-period salary claims.
Attempts by journalists to obtain Petrofac’s comment were unsuccessful, and no formal public statement had been released at the time the issue was reported.
The Legal Questions Raised
Under UAE labour law, termination entitlements typically depend on the employment contract, statutory provisions, and the circumstances of the dismissal.
Authorities generally examine whether employees received all payments due under the UAE Labour Law, including wages, accrued leave, and end-of-service benefits.
Courts and regulators often consider whether notice-period requirements were met or lawfully substituted by compensation in lieu of notice.
The question usually turns on the nature of the termination and the terms agreed in the employment contract.
In cases involving restructuring, authorities typically assess whether employers followed required procedures, provided accurate calculations of entitlements, and issued final settlements within the legally mandated timeframe.
These principles are applied broadly and do not imply any specific finding about Petrofac.
Human Rights, Safety and Public-Interest Context
International frameworks such as the International Labour Organization (ILO) principles emphasise fair treatment, clarity of employment terms and predictable compensation at the end of service. These standards highlight the importance of stability for workers facing sudden job changes.
UN human rights guidance on economic security also notes the value of timely access to wages and benefits, especially for individuals supporting families. These are general global principles and do not address any specific case.
In the UAE, employment regulations and duty-of-care expectations encourage clear communication during restructuring so workers can understand their entitlements and plan accordingly. Predictability in settlement procedures helps reduce financial uncertainty for families when employment ends.
The Role of Law Enforcement & Regulators
In employment-related matters, labour authorities, not police are typically responsible for handling disputes about wages, end-of-service benefits, and notice-period compliance.
Employees may file a complaint with the UAE Ministry of Human Resources and Emiratisation (MoHRE), which then reviews the case and attempts mediation.
If mediation does not resolve the matter, the dispute may be referred to the labour courts, which examine contracts, payment records, and statutory requirements.
Courts generally focus on whether the employer complied with legal obligations regarding final settlements.
Regulators also oversee the timing of settlement payments.
In practice, authorities examine documentation such as wage slips, termination letters, and the final statement of account, which employers must provide to clarify entitlements.
Risks, Implications & Public Impact
Uncertainty around final settlement payments can significantly affect household financial planning, particularly for expatriate workers responsible for housing, education, and routine expenses.
Delayed or unclear entitlements may lead to temporary financial pressure.
At a broader level, clarity in termination procedures supports confidence in corporate restructuring processes. Predictable settlement practices also help maintain trust between employers and employees during operational changes.
From a regulatory standpoint, accurate calculation and timely delivery of end-of-service payments contribute to stable employment practices and reduce the likelihood of formal labour disputes.
Key Questions People Are Asking
What does UAE law say about notice-period obligations?
Under the UAE Labour Law, notice periods are generally set by the employment contract but must fall within statutory limits. If an employer ends the contract without requiring the employee to work the notice period, compensation in lieu of notice is normally considered.
How are end-of-service benefits calculated?
End-of-service benefits are typically based on an employee’s basic wage and length of service, following formulas set out in the UAE Labour Law. Employers calculate these amounts at termination and must include them in the final settlement.
How long do employers have to issue final settlements?
UAE authorities generally expect final dues to be paid within a defined period after employment ends. While timelines may vary by circumstance, providing a written settlement statement is considered a mandatory procedural step.
Can employees challenge a settlement if they believe an entitlement is missing?
Employees can file a labour complaint with MoHRE, which assesses the matter and may refer it to the labour courts. The process focuses on contracts, payroll records, and statutory entitlements.
What happens if an employer does not issue a statement of account?
Labour authorities typically require employers to provide clear documentation of all dues. If a statement is not issued, employees may seek official intervention to obtain it and verify their entitlements.
What Employees Can Expect Procedurally
The next practical step is the issuance of the final statement of account, which Petrofac employees say has been scheduled within the 14-day post-termination period. This document will detail accrued leave, end-of-service benefits, and any remaining payments.
Once the statement is received, employees can compare the listed entitlements with their contracts and relevant legal provisions. If discrepancies arise, they may pursue clarification directly with the employer.
If concerns remain unresolved, employees can refer the matter to MoHRE, which typically reviews documentation, facilitates mediation, and, if necessary, transfers the dispute to the labour courts for adjudication.
Final Assessment of the Legal and Compliance Issues
The situation centres on whether termination procedures and entitlements are processed in accordance with UAE labour rules, including notice-period compensation and end-of-service benefits.
Clear and timely settlement information is essential for employees to understand their rights and obligations.
The case highlights the public-interest importance of transparent employment practices during corporate restructuring.
Going forward, the key focus will be on documentation, regulatory compliance, and ensuring workers receive all dues owed under applicable law.
