Awareness & Education

EOSB Case Study: Petrofac

What the Petrofac case teaches us about funded End-of-Service Benefits

By Nisha Braganza

Recently, Gulf News reported that several former Petrofac UAE employees who were laid off in November 2025 with little notice, have finally received partial payment of their End-of-Service Benefits (EOSB), more than six months after termination.

Most reportedly accepted 70% of what they were legally owed as a full and final settlement.

The update is based on information provided by former employees, and whether this covers all ~200 affected employees is unclear, as Petrofac declined to comment to Gulf News. The article further states that the settlement only came after sustained pressure through the Ministry of Human Resources and Emiratisation (MOHRE) following employee complaints, with urgency increasing due to a pending sale process.

For employees who received something, this will come as a welcome relief.

However, receiving 70% after six months of uncertainty and forced by regulatory intervention is a classic example of how the gratuity system can leave employee benefits exposed. And that’s why governments across the GCC are increasingly moving away from this traditional system.

Funded schemes require employers to contribute to approved EOSB funds throughout employment, with savings held in the employee's name, essentially ring-fencing employee dues from the employer's fortunes (or misfortunes).

The Petrofac case is also a reminder of why funded EOSB schemes exist. Their primary purpose is to better protect employee benefits by separating accrued employee benefits from the employer's balance sheet. Investment options, expected returns and fund fees remain important considerations, but they become relevant only once those savings have first been protected.

The Petrofac employees who waited half a year and walked away with less than what they were owed did not lose out because of poor fund performance. They lost out because there was no fund.

“Am I enrolled in an EOSB Savings Scheme?" That is a question every employee in the GCC should be asking their HR department sooner than later. The Petrofac case demonstrates why.

Source: Gulf News, Petrofac UAE staff get 70% dues after six-month wait, 22 June 2026.

Read the full article here: https://gulfnews.com/business/energy/petrofac-uae-staff-get-70-dues-after-six-month-wait-1.500581851