Is It Permissible to Work as a Salesperson If the Contracts Involve Late Payment Penalties?
Hanafi Fiqh
Answered by Mawlana Ilyas Patel
Question
Is it permissible to work as a salesperson if the contracts I sell include late payment penalties, which resemble riba, and fluctuating prices due to taxes and regulations? Does this make my income haram, or am I only sinful for this aspect of the work?
Answer
In the Name of Allah, the Most Merciful and Compassionate.
I pray this finds you well in good faith and health. May Allah reward you for reaching out to us.
It would be permissible to work as a salesperson if your job involved selling contracts with late penalty fees. This clause is part of company policy, which you were not personally involved in making.
Esteemed contemporary Muftis and scholars say late payment fees are unlawful as they fall within the prohibition of interest (riba). However, due to most contracts containing a late payment term, avoiding all such contracts would place a person in a difficult situation. Thus, it would be permitted to enter such a contract. [Usmani, Fiqh al-Buyu]
Sharia Discretion and Widespread Public Predicament
Sharia gives discretion (rukhsa) in these types of difficult situations under the framework of widespread public predicament (‘umum al-balwa). Contemporary scholars have permitted entering into a contract which stipulate late payment fees, provided that one is certain that they will make all payments on time and not allow to incur any late payment charge.
For this reason, it would be allowed to sell such a contract and enter it provided the contract does not violate any other sharia principle and the individual makes all payments on time.
As with working with finance related jobs we should always seek Allah’s forgiveness and hate the elements of interest-based nature we have to sometimes enter and be part of in one’s heart.
I would like you to go through the valuable answers and links below. You will receive guidance and direction Insha Allah.
Related
What Is the Ruling of Penalty Fees Given to Charity?
What Are the Principles of Work and Assisting in Sin? [Video] – SeekersGuidance
Working as an Accountant When Interest Transactions Are Involved.
Is It Permissible to Impose Late Payment Fees on Customers?
Can I enter into a contract with haram clauses?
Is It Permissible to Impose Late Fees on Customers for Delayed Payments?
Documenting Usurious Transactions as an Accountant.
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I pray this helps with your question.
[Mawlana] Ilyas Patel
Checked and Approved by Shaykh Faraz Rabbani
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.
