S&K HR Consulting supports international businesses operating in the UAE with practical, compliant HR advisory across the employee lifecycle.
This engagement involved two NYSE-listed oil & gas companies undergoing a global acquisition, with the UAE identified as the center of a key growth region. As a result, there was a strong focus on getting the UAE organisation set up correctly from both a structural and compliance perspective.
The acquisition brought together existing UAE operations under the buyer with the acquired entity, requiring the creation of a unified HR framework aligned with UAE Labour Law and a reputable free zone environment.
This was not a standalone setup. It was a live integration where organisational design, employee transitions, and workforce decisions had to be handled in parallel, with a clear requirement to maintain business continuity and ensure no disruption to existing client relationships.
The Challenge
The UAE component of the acquisition required managing multiple priorities at the same time, each with its own level of complexity. This was not a sequential process. Integration, employee movement, and workforce decisions had to be handled in parallel, while maintaining stability across the business.
1.Integration Across Jurisdictions
While governed under UAE Labour Law, the operations spanned both mainland and free zone environments across different emirates. This created practical differences in application, documentation, and processes.
In addition, the integration involved two existing organisations with their own structures, contracts, and ways of operating. Aligning these into a single, consistent framework required careful handling to:
- Standardise employment terms without disrupting continuity
- Align policies and benefits across entities
- Ensure compliance across both mainland and free zone requirements
All of this had to be done while maintaining business continuity, ensuring no disruption to ongoing operations or client relationships, and retaining key employees critical to the success of the merged organisation.
2. Employee Relocation and Transition
Employees were being moved into the UAE directly under the new entity, coming from different parts of the world. The complexity was not in the volume, but in the variation.
Each case required individual handling due to:
- Differences in documentation and point of origin
- Personal circumstances, including dependents and relocation readiness
- Timing sensitivities linked to project needs and business continuity
There were also layers of complexity within the UAE itself, from arrival logistics to local onboarding requirements.
In one instance, new arrivals had to be managed during a period when Dubai experienced severe disruption due to unprecedented rainfall, impacting mobility and day-to-day operations. While an exception, it reflected the need to manage transitions in real time, beyond standard processes.
3. Workforce Reduction (RIF)
As part of the integration, a phased workforce reduction of approximately 50% was required, driven by role duplication following the merger and the need to restructure the organisation in line with business priorities.
The scale of reduction was a direct outcome of integrating two existing operations into a single structure, where overlapping roles and functions needed to be rationalised.
This presented several sensitive factors:
- Employees at different stages of employment, including new joiners still within probation
- Individuals in the process of relocating or planning family moves to the UAE
- The need to carry out the reduction while identifying and retaining key talent essential to the future organisation
- A new leadership team making decisions on a workforce they had not yet built relationships with
The risk was not limited to compliance. It extended to employee experience, leadership credibility, and maintaining stability in a close-knit industry where reputation matters.
The Solution
S&K worked alongside the client as a local HR partner, supporting the integration of two UAE operations into a single, aligned organisation.
The engagement required managing two critical priorities at the same time: establishing the HR framework for the merged entity, including retained employees across both organisations, while executing a phased workforce reduction within the acquired business.
The approach focused on creating structure while maintaining balance.
- For the HR set-up, the priority was to bring both organisations into a unified and compliant framework, aligning employment terms, practices, and employee positioning without disrupting ongoing operations.
- For retained employees, particular attention was given to ensuring clarity and continuity. This included aligning contracts and employment terms in line with UAE Labour Law, while also maintaining morale through consistent communication and a structured transition into the new organisation.
- For employee transitions, each case was handled individually, taking into account personal circumstances, documentation differences, and timing sensitivities, ensuring consistency without a one-size-fits-all approach.
- For the workforce reduction, the focus was on delivering a structured process that balanced compliance, UAE’s diverse culture with employee experience, while ensuring that key talent was retained for the future organisation.
A key part of the role was bridging the gap between outgoing and incoming leadership. With limited familiarity on one side and established relationships on the other, maintaining context and consistency was critical to decision-making.
The Results
The engagement delivered outcomes across both the establishment of the HR framework for the merged organisation and the execution of the workforce restructuring.
HR Set-Up and Integration
- A unified and compliant HR framework established across mainland and free zone operations
- Alignment of employment terms, policies, and employee positioning across both organisations
- Smooth integration of retained employees, with clarity on roles, continuity of service, and minimal disruption to operations
- Business continuity maintained, with no impact to ongoing operations or client relationships
Workforce Reduction (RIF)
- Phased workforce reduction completed in a structured and compliant manner
- No disputes or escalations raised with free zone authorities
- All impacted employees accepted their outcomes, including after formal appeal opportunities
- Reduction carried out while retaining key talent required for the future organisation
Overall Impact
- Leadership was able to make informed decisions despite limited familiarity with the workforce, supported by structured guidance and consistent handling across all employee cases
- Confidence maintained across both outgoing and incoming leadership teams during a period of significant change
- Consistent handling of both retained and impacted employees, balancing compliance with employee experience
- The transition was managed with control and stability, despite overlapping priorities and time-sensitive decisions
Beyond the technical outcomes, the process was recognised for the level of care and attention given to each individual situation, which was acknowledged by both sides of the transaction.
Client Feedback
“S&K supported us through a complex phase where we were simultaneously establishing the HR framework for a merged UAE organisation while managing a workforce reduction.
They brought structure and clarity to the integration, ensuring alignment across entities and compliance with local requirements. At the same time, the reduction process was handled with a high level of professionalism and respect, with clear attention to each individual situation.
What made a difference was their ability to bridge the gap between leadership and employees, particularly where there was limited familiarity with the existing team. This gave us confidence in the decisions being made and how they were being executed.
The transition was completed smoothly, with no disputes or escalations, and without disruption to our operations or client relationships.”
Conclusion
This was a situation where everything was happening at once.
The UAE organisation needed to be brought into one structure, while at the same time reducing part of the workforce. Both had to be handled properly, without slowing the business down.
The structure was put in place, the changes were carried out, and the business continued as it was. Client relationships remained stable, and the right people stayed in place to support what came next.
S&K worked alongside the leadership team to keep things steady, especially where decisions had to be made on people they didn’t yet know.
