Can I Request Dismissal Compensation From an Employee as Stipulated by Labor Law?
Hanafi Fiqh
Answered by Mawlana Ilyas Patel
Question
In the country where I work, the labor code states that when an employee is dismissed, they are entitled to three months’ salary. Our company may soon close, and management is planning to ask employees to write resignation letters to avoid paying this compensation.
As a Muslim, is it permissible for me to request these three salaries in case of dismissal? Would it be sinful for me? And does this contradict Islamic law?
Answer
In the Name of Allah, the Most Merciful and Compassionate.
I pray you are in good faith and health. Thank you for your question.
No, it is not sinful for you to request three months’ salary if you are dismissed, and it does not contradict Islamic law.
Islam emphasizes the fulfillment of agreements. It encourages fulfilling contracts and respecting laws that do not contradict Sharia. Since this law protects employees, it is a rightful entitlement. The company agreed through labor laws to compensate dismissed employees, and backing out of this is a breach of trust (amana). Allah says:
“O you who have believed, fulfill (all) contracts.” [Quran, 5:1]
Please go through the valuable answers and links below. Insha’Allah, they will provide you with guidance and direction.
Related: Provision and Work: A Reader – SeekersGuidance
I pray this helps with your question.
Wassalam,
[Mawlana] Ilyas Patel
Checked and Approved by Shaykh Abdul-Rahim Reasat
Mawlana Ilyas Patel has received traditional education in various countries. He started his schooling in the UK and completed his hifz of the Quran in India. After that, he joined an Islamic seminary in the UK, where he studied secular and Aalimiyya sciences. Later, he traveled to Karachi, Pakistan, and other Middle Eastern countries to further his education. Mawlana has served as an Imam in the Republic of Ireland for several years and taught the Quran and other Islamic sciences to both children and adults. He also worked as a teacher and librarian at a local Islamic seminary in the UK for 12 years. Presently, he lives in the UK with his wife and is interested in books and gardening.
