Mufti Online — Madrasah Ta'leemuddeen

Employment contract

· 10 Shaʻban 1434 AH1 min readEnglish

Question

A father has a business and employs his son as a manager of the business. The father stipulates the salary of the son as follows:

On a monthly basis the son will receive R2000 (for example) as salary, which will escalate 10% yearly, and together with that, the son will share 50% of the profits yearly with the father, after deducting business expenses. Is this permissible?

Answer

It is permissible, however the 50% share of the profits after deducting expenses should not be included in his salary. Instead, it should be regarded as a bonus that he will receive from the side of the employer.

And Allah Ta'ala (الله تعالى) knows best.

References (Arabic / Urdu sources)

ولا تصح حتى تكون المنافع (اي في الإجارة) معلومة والأجرة معلومة (الهداية 3/293)

Answered by
Mufti Zakaria Makada
Checked & approved by
Mufti Ebrahim Salejee (Isipingo Beach)
View original Compare with other Darul Iftas
Questions about this ruling, answered only from the archive with sources.

Where scholars differ, it’s safer to take the more cautious view.

Fatawa SA is an independent, read-only index of fatawa already published by Mufti Online — Madrasah Ta'leemuddeen. It is not a fatwa service. For your own situation, please ask a Mufti. Report an issue

For corrections or mistakes, please email us at fatawasa786@gmail.com.

Source: Mufti Online — Madrasah Ta'leemuddeen — https://muftionline.co.za/node/2971
Fatawa SA: https://fatawa.co.za/fatwa/muftionline-2971

Related fatawa