What is legal status of Job contract in Dubai

Hi,

I need to ask what is status of job contract if later on the company denies to process employee's visa.

I need some advice for the following scenario.

A person who's visa is going to be expired in few days, gets hired in a job interview. Company gets that person to do its current project and then sends him to his country saying company will process his visa and will call him again on new visa. At that point an official contract takes place and both parties sign on it.
Now, company keeps on asking to be patient saying they are processing the visa and this cycle continues for more than 4 months until that person gets fed up and gets visit visa to reach the company himself to see whats going on there. At this point, company says that person can not be hired as company does not have any further projects.

Now, few questions arise,
Can a company do like this in Dubai ?
Is there any legal bounding of the contract if company does not want to process the visa later on?
Is company legally bound to pay for all the time they made that employee waiting and also the time he worked at the company before being sent to his home country ?

Please I need serious suggestion in this regard.