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The layoffs comply with final month’s termination of Petrofac’s position on a two-gigawatt Dutch offshore wind transmission programme, which pushed the group’s holding firm into administration within the UK and triggered instant early-release notices for UAE employees linked to the undertaking. Arabian Enterprise reported these preliminary terminations on Wednesday.
A number of senior workers mentioned between 200 and 220 employees within the UAE have been knowledgeable in a city corridor that their roles had been terminated, with their final working day set for the next day.
“We have been known as right into a city corridor, the CEO mentioned it was a tragic day, and we have been instructed we’d obtain our letters the identical day and that the following day could be our final,” one senior supervisor mentioned. Workers have been instructed to return laptops and firm property, and work e-mail entry was eliminated shortly afterwards.
Inside HR emails reviewed by Arabian Enterprise state that November salaries will likely be paid for days labored as much as the 18th or nineteenth and instruct employees handy again entry playing cards, clear desks, return IT gear and replace contact particulars.
Workers throughout totally different ranges instructed Arabian Enterprise they haven’t but been knowledgeable when – or whether or not – EOS funds will likely be made.
“Through the city corridor they mentioned we’d get a ultimate assertion of account within the coming days,” one senior worker mentioned. “Once we requested immediately if they might pay our end-of-service, they didn’t give a transparent reply.”
One other supervisor mentioned a separate inside Q&A shared with employees – which Arabian Enterprise has not independently seen – acknowledged that Petrofac’s EOS legal responsibility within the UAE stands at roughly $65 million, including: “The wording mentioned they don’t have the funds to pay that out abruptly.”
A number of workers mentioned they’re contemplating or making ready complaints to the Ministry of Human Assets and Emiratisation (MOHRE). Arabian Enterprise couldn’t independently confirm the variety of complaints.
Some employees mentioned they fear that, within the occasion any UAE entities are later declared bancrupt, EOS restoration may very well be sophisticated by variations between UAE labour regulation and UK insolvency guidelines. They burdened that these considerations mirror inside interpretation and never confirmed authorized recommendation.
“Individuals are beginning to suppose they might want authorized motion to get well their dues,” one senior worker mentioned. “There’s a concern that employees claims might fall behind collectors if insolvency proceedings prolong to UAE entities – however that is our interpretation, not the corporate’s.”
Arabian Enterprise shouldn’t be conscious of any insolvency submitting for Petrofac entities within the UAE.
Various employees mentioned that they had lengthy been conscious of monetary strain inside the enterprise. A number of referenced inside conversations about cross-project money pressure, together with considerations referring to Petrofac’s work in Lithuania. Arabian Enterprise couldn’t independently confirm these claims, they usually stay worker perceptions solely.
One employees member described the scenario as “a domino impact,” saying inside delays and strain had been mentioned “for weeks earlier than the announcement.”
One other senior supervisor added that workers had for a while speculated about the potential of sure entities being wound down regularly. Workers emphasised that these views signify inside conversations quite than confirmed firm info.
Petrofac: UAE operations proceed as regular
In an announcement to Arabian Enterprise on Wednesday, Petrofac mentioned:
“Supply of Petrofac’s operations throughout its UAE undertaking portfolio are persevering with as regular. Petrofac is concentrated on preserving worth, operational functionality and ongoing supply throughout the Group’s working and buying and selling entities whereas choices are being superior to underpin their long-term future.
“The beforehand introduced termination of Petrofac’s position on the Dutch-German 2GW offshore wind programme by TenneT has meant that early-release notices have been issued to colleagues whose roles are linked to this programme. We recognise this can be a difficult time for our folks and we stay in shut coordination with them and the Ministry of Human Assets and Emiratisation.”
Petrofac has not but responded to detailed follow-up questions relating to EOS timelines or the exact variety of UAE-based employees affected.
Workers mentioned the layoffs are concentrated in ETP UAE, a part of Petrofac’s power transition and renewables enterprise.
“To be exact, administration shouldn’t be utilizing the phrase ‘closed’,” one supervisor mentioned. “They’re saying there is no such thing as a work within the entity for the time being. However for workers, the result is similar.”
A number of employees mentioned they have been instructed that some workers could also be rehired later in different Petrofac entities on new contracts. Arabian Enterprise couldn’t affirm this, and the corporate has not commented on rehiring.
An business supply accustomed to the restructuring mentioned roughly 180 UAE-based workers linked to the 2GW programme have been launched. A small group has been retained briefly to assist close-out actions associated to the undertaking, the supply added.
The supply additionally famous that Petrofac has dozens of entities globally, a few of that are dormant and routinely consolidated or closed even underneath regular enterprise situations, and that longstanding UAE operations proceed to commerce.
Arabian Enterprise couldn’t independently confirm the operational standing of particular person UAE entities.
A number of workers mentioned they have been instructed directors are reviewing which enterprise items generate money and the way they might be positioned for potential investor curiosity.
“From what we perceive internally, worthwhile entities – similar to these with ongoing ADNOC initiatives – may very well be packaged on the market,” one senior worker mentioned. “Entities with no work are being emptied of employees.”
Workers acknowledged that these views signify inside discussions and haven’t been confirmed by Petrofac. Arabian Enterprise couldn’t independently confirm whether or not any buyers have expressed curiosity.
Trade sources mentioned the group is exploring restructuring or M&A choices, in step with public disclosures made when directors have been appointed on October 27.
Petrofac entered court-supervised administration in late October and has been delisted from the London Inventory Change. The corporate says it’s “centered on preserving worth” in its working companies whereas choices are explored.
Workers who spoke to Arabian Enterprise mentioned considerations over EOS funds have intensified as a result of no timeline has been offered and since inside paperwork referenced a big legal responsibility.
“For 3 years everybody knew there was a problem,” one senior worker mentioned. “Now they’re saying there’s a $65 million legal responsibility and that they can’t pay it abruptly. Individuals are very apprehensive.”
Petrofac mentioned it stays in coordination with MOHRE and is “centered on preserving worth, operational functionality and ongoing supply” throughout buying and selling entities.
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