Percentage-Based Salary/Remuneration

Question

An Aapa has been employed to teach in a madrassa. The condition for the payment of her salary was decided to be 20% of the total fees collected on a monthly basis by the madressa committee. So that would mean that if in the first month the total fees collected is R10 000 rand, her salary would be R 2000. In the second month R5000 was collected, the salary would be R1000.

In partnership(shirkat) this would be permissible to share profits amongst partners based on % but would it be permissible in the case where one’s salary (Ijaarah) will be determined according to%.

Answer

The Madrasah will be regarded as the employers in the scenario under discussion and the Aapa will be regarded as the employee of the Madrasah. The employment contract between the employee and employer is termed as Ijaarah in Shariah.

When an employer and employee enter into an Ijaarah contract then the remuneration of the employee has to specified and cannot be left ambiguous, in the manner the Madrasah (institute) has transacted (as explained in the query). If the remuneration is ambiguous (as is the situation in the queried scenario), then the Ijaarah (hiring contract) becomes Faasid (corrupt/ invalid).

Hence, the contract will only be valid if the employer stipulates a fixed sum in monetary terms (for example R5000 per month) for the Aapa’s monthly remuneration. 

If the employee had carried out her respective duties in spite of the contract being invalid, she will be entitled to Ujrat-e-mithl (i.e. a salary that is generally paid to other Aapas that carry out similar duties).

Checked and Approved By:

Mufti Muhammed Saeed Motara Saheb D.B.

References

(يجب) وظاهر الآية أنه فرض نهر ج ٦ ٥ تفسد الإجارة بالشروط المخالفة لمقتضى العقد فكل ما أفسد البيع ) مما مر ( يفسدها كجهالة مأجور أو أجرة أو مدة أو عمل ، وكشرط طعام عبد وعلف دابة ومرمة الدار أو مغارمها وعشر أو خراج أو مؤنة رد أشباة
(شامي ص :٤٦ ج٢)

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