Category: Business Matters
Fatwa#: 29943
Asked Country: South Africa

Answered Date: Nov 30,-0001

Title: Employment Agency

Question

I have a 2 part question first I will explain where I am coming from.

I have heard in the past that running an employment agency is haram because for example: the agency appoints person A to carry out work for person B, at the end of that week person A had carried out 40 hours of work for which then person B will pay a rate of 10 pounds per hour worked by person A to the employment agency for which in return the agency will then pay person A a rate of 7pounds per hour pocketing the remainder.

My understanding of this is was that the pocketing of the remainder would be classed as interest (RIBA) however I wasn't 100% certain so my question is

A. Is it permissible to run an employment agency?

B. Is it permissible to work through an employment agency?

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

In order for us to issue a ruling, clarify the relationship between the agency and B. Explain the details of the contract between them and also between A and the agency.

And Allah Ta’āla Knows Best

Arshad Ali

Student Darul Iftaa
Trinidad

Checked and Approved by,
Mufti Ebrahim Desai.

http://www.daruliftaa.net/

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