Islamic Rulings on Trade

What do Islamic scholars state about deducting the salary of one month if an employee leaves his job without informing (the management)?

Question 1: What do the Islamic scholars say about the following issue? If an institute or company has a condition that if an employee wants to leave the job, it is necessary for him to inform (the management) one month in advance, otherwise his salary of one month will be deducted.  What is the Shar’i ruling on this and what do Islamic scholars state about giving someone a contract of employment on this condition?

اَلْجَوَابُ بِعَوْنِ الْمَلِکِ الْوَھَّابِ اَللّٰھُمَّ ھِدَایَۃَ الْحَقِّ وَالصَّوَابِ

Answer: It is impermissible and a Haraam act for an institute or a company to lay down the condition: ‘In case of leaving the job, it is necessary for the employee to inform one month in advance, otherwise his salary of one month will be deducted’. It is not even permissible to deduct the salary of one month i.e. the month in which the employee has worked if the employee leaves the job without informing (the management). Furthermore, it is not even correct to lay down such a condition in the contract.

The Holy Prophet صَلَّى اللّٰهُ عَلَيْهِ وَاٰلِهٖ وَسَلَّم has said:

مابال رجال یشترطون شروطا لیست فی کتاب اللہ ما کان من شرط لیس فی کتاب اللہ فھوباطل، وان کان مائۃشرط قضاء اللہ احق وشرط اللہ اوثق

What happened to the people that they lay down such conditions which are not found in the Holy Quran and the condition which is not permissible in light of the Holy Quran is invalid even if there are one hundred conditions. The verdict of Allah Almighty is more truthful and the condition laid down by Allah Almighty is very firm. (Bukhari, vol. 2, pp. 36, Hadees 2168)

It has been mentioned in Durr-e-Mukhtar:

تفسد الاجارۃ بالشروط المخالفۃ لمقتضی العقد

Such conditions which go against the requirement of the agreement invalidate the contract of employment or renting.

(Durr-e-Mukhtar ma’ Rad-dul-Muhtar, vol. 9, pp. 77)

In ‘Fatawa-e-Razawiyyah’, while answering to a question similar to this, A’la Hadrat, Imam-e-Ahl-e-Sunnat Maulana Shah Imam Ahmad Raza Khan رَحْمَةُ اللّٰهِ عَلَيْه has mentioned: For one to go against the contract after offering his services and accepting and confirming is at most an offence. It is not permissible to punish an offence with a monetary fine as this is abrogated and it is Haraam to act upon what is abrogated. Regarding the rights of people only the Qadi of Shari’ah has authority to give punishment. Even regarding the rights of Allah عَزَّوَجَلَّ except for few cases the Qadi of Shari’ah has the authority, not common people, to give punishment. An impermissible matter cannot become permissible due to it being prevalent. Similarly, if a person leaves (his job) without informing (the management), salary will only be deducted from the moment (i.e. when he leaves). It will not be deducted from the Wajib salary and to impose a penalty to this as a condition, e.g. ‘You shall inform (the management) such-and-such a number of days in advance if you want to leave the job, otherwise this amount of salary will be deducted’ is invalid and contrary to Shari’ah. If these types of conditions are laid down in the contract of employment as is understood from the question that a signature is taken on these principles at the time of giving somebody employment or such conditions are established and well-known in that place and are المعروف کالمشروط, that job itself is impermissible and a sin as the employment becomes invalid due to the invalid condition. An invalid contract is Haraam and both parties are involved in the sin. It is Wajib for both to nullify the contract. In this situation, the employees will not deserve the agreed salary, but rather they will receive Ajr-e-Misl (a salary as per the custom) which should not be more than the stipulated salary. If the customary salary is less than the stipulated amount, they will automatically receive less to that extent themselves even if they do not actually go against it. (Fatawa Razawiyyah, vol. 19, pp. 506,507)

وَاللہُ اَعْلَمُ عَزَّوَجَلَّ وَ رَسُوْلُہٗ اَعْلَم صلَّی اللہ علیہ واٰلہٖ وسلَّم

What do Islamic scholars state about mill owners’ act of deducting money from the wheat sacks in the name of soil and pebbles

Question 2: What do Islamic scholars say about the following issue? Whenever wheat is imported, it has pebbles as well as soil in it. Therefore, based on the estimate, mill owners deduct the price of two kilograms from the owners of wheat which is referred to as ‘cut’. For example, a 100-kilogram sack of wheat at a rate of thirty rupees per kilo amounts to 3000 rupees. They apply ‘cut’ to it and consider it to be 98 kilos after deducting two kilos in the name of soil and pebbles. Is it correct to do so?

اَلْجَوَابُ بِعَوْنِ الْمَلِکِ الْوَھَّابِ اَللّٰھُمَّ ھِدَایَۃَ الْحَقِّ وَالصَّوَابِ

Answer: If this is prevalent amongst people and it is the custom of people that whenever a transaction of 100 kilos is carried out, the money for 98 kilos will only be paid, it is permissible and there is nothing wrong with it. However, if the second party, i.e. the one selling the goods is not satisfied with it, it will not be permissible to do this.  وَاللہُ اَعْلَمُ عَزَّوَجَلَّ وَ رَسُوْلُہٗ اَعْلَم صلَّی اللہ علیہ واٰلہٖ وسلَّم

What do Islamic scholars state about using pallet wood when making a sofa and selling it as brand-new?

Question 3: What do Islamic scholars say about the following issue? Wood in the form of pallets is imported which is placed at the bottom of the container and goods are placed on top of it. Then, these pallets are sold in the market and the attached pieces of wood are removed and sold to sofa manufacturers. The sofa manufacturers use this wood for the inner fitting of the sofa. Though they have been used, we say ‘this is a new sofa’. Is this correct?

اَلْجَوَابُ بِعَوْنِ الْمَلِکِ الْوَھَّابِ اَللّٰھُمَّ ھِدَایَۃَ الْحَقِّ وَالصَّوَابِ

Answer: There are two types of sofas – one type is such that the inner structure is made up of various planks and pieces of wood and the other type refers to the sofas whose inner structure is made of only that wood which has been decided beforehand. There is a huge difference in the prices of both sofas. Pallet wood can be used in the first type of sofa because it is like brand-new wood and as a norm, due to being used in containers, it is not even objected to. However, everyone does not know as to how the structure of the sofa is made, the shopkeeper should clarify to the customer that the structure of the sofa is made up of various types of wood and no specific type is used, e.g. he should not say that the inside is made of rosewood or the wood of another tree.

وَاللہُ اَعْلَمُ عَزَّوَجَلَّ وَ رَسُوْلُہٗ اَعْلَم صلَّی اللہ علیہ واٰلہٖ وسلَّم

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