Islamic Finance Contracts

 

Employment Contract

 

THIS AGREEMENT made as of the ______day of__________________, 20____, between [name of employer] and having its principal place of business at _______________________ (the "Employer");

And [name of employee], residing at ____________________

 

WHEREAS the employer desires to obtain the benefit services from the employee, and the employee desires to provide such services on the terms and conditions set forth.

 

The parties agree as follows:

 

1. Employment

 

The employee agrees that he will at all times faithfully and to the best of his skill, ability, experience and talent, perform all of the duties required of his position. In carrying out these duties and responsibilities, the employee shall comply with all the employer’s policies, procedures, rules and regulations, both written and oral, as announced by the employer from time to time.

 

2. Qualification

As a _____________, the Employee is required to perform the following duties and undertake the following responsibilities in a professional manner.

(a)-.

(b) -

(c) -

(d) -

 

3. Remuneration

 

(a) As full remuneration for all services provided, the employee shall be paid the amount of ___________________________________________.

(b) (May wish to include bonus calculations or omit in order to exercise discretion).

(c) The salary mentioned in paragraph (3a) shall be reviewed on an annual basis.

 

4. Vacation

The Employee shall be entitled to  ________________weeks of vacation annually.

 

5. Termination

 

(a) The employee may at any time terminate this agreement and his employment by giving no less than two weeks written notice or by mutual consent of the employer.

(b) The employer may terminate this agreement and the employee’s employment at any time, with a notice or by mutual consent with the employee.

 

6. Amendments

 

No changes or additions to this agreement shall be made except by written agreement between the employee and the employer. This agreement and any documents attached represent the entire agreement between the employer and the employee.

 

WHEREFORE, we, the undersigned, agree to this contract, by signing two copies (one for the employer and one for the employee).

 

EMPLOYER                                                            EMPLOYEE

 

 

___________________                                              _________________________

(Signature)                                                                 (Signature)

 

 

 

_____________________                                          ________________________

(Date of signature)                                                      (Date of signature)


 

Employment Agreement

  1. 1.The employee must be able to perform the job required from him or her.[1]
  2. 2.The duration of the employment should be mentioned clearly at the time of the contract.[2]
  3. 3.The wage must be fixed and specified, that is to say, so much per day or so much per month. It is not valid to say that a suitable wage will be paid. If someone is employed without fixing his salary or wage, then the agreement is invalid, and he will have to be paid Ujrat Mithli ( a fair wage which generally s determined by an impartial third party). However if the rate of some work is commonly known amongst people, then the agreement can be made without specifying the wage. In the event of a cancellation of the agreement, the worker will have to be paid for number of days he worked.[3]
  4. 4.The nature, timings and place of the work must be specified. The person being employed must be informed of the kind of work he will be required to do, where he will work and the time he will have to work. The employee’s wages must be agreed upon, therefore, if the employee is asked to exercise any task which was not mentioned at the time of employment, he may refuse to do so.

An example of the above: if you employ a worker, he has to be notified that he will be paid R10,000 each month. Each day he will be required to spray paint whichever car comes to the garage and he will be working in this place.[4]

  1. 5.The employee is not permitted to use the subject in a manner contrary to what is permitted by the contract. In particular, the employee is not allowed to inflict any harm on the subject of the contract.[5]
  2. 6.The position of an employee is an Amin (entrusted person) without Zamaanat i.e. a trustee without liability. A trustee has to take full care of the item that he is entrusted with, but if by chance an item is lost or damaged, he will not be liable for compensation, but if he deliberately damages it, then he will be liable. In the same way, every worker and employee is a trustee of his employer’s property i.e. the things that he uses or is put in charge of and the work he has been commission with. If he falls short in his work unintentionally or due to a difficulty or the equipment he is using breakdown unexpectedly, he will not be held liable.[6]
  3. 7.If on one day, the employer does not give his employee any work to do, then does he have to pay him for that?

There are two possibilities: one is that he is keeping him on the basis of a monthly or weekly wage, and the employee reported for work but was not given any work to do. In this case, he has to be paid for his time, as well as for his day off. But if he is kept on a daily wage basis then he will have to be paid for the days on which he works, and not for the days on which he is not given work.[7]

  1. 8.The Ijarah contract can be terminated by mutual consent.
  2. 9.Once an employer and employee have entered into a wage agreement, neither party then has the right to cancel it, unless either party is confronted with some constraint or legitimate objection.[8]

10. The Ijarah contract will end by the death of one of the two parties. [9]

We advise one to put a Mediation/ Arbitration clause such as:

Ay dispute arising from or in connection with this contract shall be finally resolved in accordance with the standard conditions of Mediation/Arbitration of the Darul Iftaa Mahmudiyyah Sherwood, Durban, by an arbitrator appointed by the Darul Iftaa or any other competent Darul Iftaa. 

NOTE:  The above-mentioned are broad rules regarding an employment agreement. If any individual wishes to add any specific condition, he may do so and attach it to this document. The conditions must not conflict with the integrals of Shariah. As such we advise that the contract be sent to a Mufti or an Alim for revision and verification so that all the conditions come in conformity with the dictates of Shariah.

 

Live like brothers and Deal like strangers

 

Remember to reduce all your dealings in writing

 

 

Click here to download the full employment contract



[1]ومنها أن لا يكون بالمستأجر عيب في وقت العقد ووقت القبض يخل بالانتفاع به فإن كان لم يلزم العقد ومنها سلامة المستأجر عن حدوث عيب به يخل بالانتفاع فإن حدث به عيب يخل بالانتفاع به لم يبق العقد لازما (الفتاوى الهندية  - ج 4 – ص 411 – مكتبه رشيديه)

[2]صح العقد على مدة معلومة أي مدة كانت قصرت المدة كاليوم ونحوه أو طالت كالسنين ، كذا في المضمرات
الفتاوى الهندية – ج 4 – ص 415 – مكتبه رشيديه

 

[3]ومنها أن تكون الأجرة معلومة
الفتاوى الهندية  - ج 4 – ص 411 – مكتبه رشيديه

 

[4]والأجير الخاص من يتقبل العمل من واحد ، وإنما يعرف استحقاق الأجر بالعمل على العبارة الأولى بإيقاع العقد على العمل كما لو استأجر خياطا ليخيط له هذا الثوب بدرهم أو استأجر قصارا ليقصر له هذا الثوب بدرهم ، وإنما يعرف استحقاق الأجر بتسليم النفس وبمضي المدة بإيقاع العقد على المدة كما لو استأجر إنسانا شهرا ليخدمه والإجارة على العمل إذا كان معلوما صحيحة بدون بيان المدة والإجارة على المدة لا تصح إلا ببيان نوع العمل وإذا جمع بين العمل وبين المدة وذكر العمل أولا نحو أن يستأجر راعيا مثلا ليرعى له غنما مسماة بدرهم شهرا يعتبر هو أجيرا مشتركا إلا إذا صرح في آخر كلامه بما هو حكم أجير الوحد بأن قال على أن لا ترعى غنم غيري مع غنمي وإذا ذكر المدة أولا نحو أن يستأجر راعيا شهرا ليرعى له غنما مسماة بدرهم يعتبر هو أجير وحد بأول الكلام إلا إذا نص في آخر كلامه بما هو حكم الأجير المشترك فيقول وترعى غنم غيري مع غنمي .كذا في الذخيرة . والأوجه أن يقال الأجير المشترك من يكون عقده واردا على عمل معلوم ببيان عمله والأجير الخاص من يكون العقد واردا على منافعه ولا تصير منافعه معلومة إلا بذكر المدة أو بذكر المسافة . كذا في التبيين .
الفتاوى الهندية – ج 4  - ص 500 – مكتبه رشيديه

 

[5] وَيَجُوزُ اسْتِئْجَارُ الدَّوَابِّ لِلرُّكُوبِ ، وَالْحَمْلِ فَإِنْ أَطْلَقَ الرُّكُوبَ جَازَ لَهُ أَنْ يُرْكِبَهَا مَنْ شَاءَ وَكَذَا إذَا اسْتَأْجَرَ ثَوْبًا لِلُّبْسِ وَأَطْلَقَ ، فَإِنْ قَالَ : عَلَى أَنْ يَرْكَبَهَا فُلَانٌ ، أَوْ يَلْبَسَ الثَّوْبَ فُلَانٌ فَأَرْكَبَهَا غَيْرَهُ ، أَوْ أَلْبَسَ الثَّوْبَ غَيْرَهُ كَانَ ضَامِنًا إنْ عَطِبَتْ الدَّابَّةُ ، أَوْ تَلِفَ الثَّوْبُ ،  وَكَذَلِكَ كُلُّ مَا يَخْتَلِفُ بِاخْتِلَافِ الْمُسْتَعْمِلِ فَأَمَّا الْعَقَارُ وَمَا لَا يَخْتَلِفُ بِاخْتِلَافِ الْمُسْتَعْمِلِ فَإِذَا شَرَطَ فِيهِ سَاكِنًا فَلَهُ أَنْ يُسْكِنَ غَيْرَهُ ، فَإِنْ سَمَّى قَدْرًا ، أَوْ نَوْعًا يَحْمِلُهُ عَلَى الدَّابَّةِ مِثْلُ أَنْ يَقُولَ خَمْسَةُ أَقْفِزَةٍ حِنْطَةً فَلَهُ أَنْ يَحْمِلَ مَا هُوَ مِثْلُ الْحِنْطَةِ فِي الضَّرَرِ أَوْ أَقَلُّ كَالشَّعِيرِ وَالسِّمْسِمِ
مختصر القدوري – ص 375 – ادارة القران و العلوم الاسلامية

 

[6] ( و لا يضمن ما هلك في يده او بعمله ) كتخريق الثوب من دقه الا اذا تعمد الفساد فيضمن كالمودع

فتاوى الشامى – ج 6 – ص 70 – 71 – ايج ايم سعيد

 

[7] والأجير الخاص من يتقبل العمل من واحد ، وإنما يعرف استحقاق الأجر بالعمل على العبارة الأولى بإيقاع العقد على العمل كما لو استأجر خياطا ليخيط له هذا الثوب بدرهم أو استأجر قصارا ليقصر له هذا الثوب بدرهم ، وإنما يعرف استحقاق الأجر بتسليم النفس وبمضي المدة بإيقاع العقد على المدة كما لو استأجر إنسانا شهرا ليخدمه والإجارة على العمل إذا كان معلوما صحيحة بدون بيان المدة والإجارة على المدة لا تصح إلا ببيان نوع العمل وإذا جمع بين العمل وبين المدة وذكر العمل أولا نحو أن يستأجر راعيا مثلا ليرعى له غنما مسماة بدرهم شهرا يعتبر هو أجيرا مشتركا إلا إذا صرح في آخر كلامه بما هو حكم أجير الوحد بأن قال على أن لا ترعى غنم غيري مع غنمي وإذا ذكر المدة أولا نحو أن يستأجر راعيا شهرا ليرعى له غنما مسماة بدرهم يعتبر هو أجير وحد بأول الكلام إلا إذا نص في آخر كلامه بما هو حكم الأجير المشترك فيقول وترعى غنم غيري مع غنمي .كذا في الذخيرة .

والأوجه أن يقال الأجير المشترك من يكون عقده واردا على عمل معلوم ببيان عمله والأجير الخاص من يكون العقد واردا على منافعه ولا تصير منافعه معلومة إلا بذكر المدة أو بذكر المسافة .كذا في التبيين .

الفتاوى الهندية – ج 4  - ص 500 – مكتبه رشيديه

 

لَوْ حَدَثَ عُذْرٌ مَانِعٌ لِإِجْرَاءِ مُوجَبِ الْعَقْدِ تَنْفَسِخُ الْإِجَارَةُ
درر الحكام في شرح مجلة الأحكام - ج 3 – ص
17 - موقع الإسلام

 

وَإِذَا مَاتَ أَحَدُ الْمُتَعَاقِدَيْنِ وَقَدْ عَقَدَ الْإِجَارَةَ لِنَفْسِهِ انْفَسَخَ الْعَقْدُ[9]

مختصر القدوري – ص388– ادارة القران و العلوم الاسلامية

KHARWASTAN

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