There are 2 types of contracts:
a) Limited (2yrs or more but with specific end date)
b) Unlimited (With no specific end date)
Limited Contract: If the employee resigns prior to completion of the preset contract expiry date, he/she shall be liable to compensate the employer with 1 and half months of gross salary (eg. aed 3000, if salary is aed2000 per month); if the employer terminates the contract prior to contract expiry, the employee will be paid 3months salary (gross salary) by the employer.
Unlimited Contracts; Since there is no fix date for contract expiry for these types of contracts, it shall be one months notice, which has to be given by either parties (employer or employee); however, if either of them decides to part ways with no time for one month notice, "compensation in lieu" has to be given (i.e one month salary).
should you have any queires on terminations please feel free to ask.
regards,

From United Arab Emirates, Dubai
Hello,
One of my employee had applied for 14 days of annual leave but he arrived after 18 days of his leave and he never informed us of his late arrival. We tried contacting him before his arrival but all the numbers that he provided us with were unreachable. After his arrival I had asked him to hand over his passport and hunt for new job and he left for his home telling me that he will get his passport but then he never came for 1 month and we tried calling on his mobile but his mobile was switched off. After 1 month he came to me and told me to cancel his visa.
Can I terminate him with absconding as he was not responsible enough to inform us before hand and this has affected my business. Secondly, will he be liable for the gratuity and air ticket? If yes, how should i calculate his gratuity (base salary or full pay)?
He has completed his 1 year of service with us and on 13th month applied for 14days annual leave. His monthly salary is AED 4500 (Basic AED 2000)
KS

From United Arab Emirates, Dubai

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