Mutual Agreement In Transactions 

Question:

Assalamu alaikum.
Many companies outsource some of their job positions to third-party companies, hiring workforces on contract. These third-party companies act as only workforce suppliers and do not provide any machines or materials. But they get a margin of profit from the salaries of the workforce.

For example, the main company is paying the third party company Rs for a technician’s position. 20,000, now a third party company may contact a higher technician at a salary of only Rs. 15,000 and make a profit of Rs. 5000 per month. Is this earning acceptable as per shari’a?

Answer:

Wa ‘alaykum assalam wa rahmatullah wa barakatuh.

I pray you are well.

This form of outsourcing is permissible as long as the standard of labor is acceptable to the main company. The profit is a halal source of income. (Maydani, al Lubab).

Mutual Agreement In Transactions

As a general rule in a financial transaction, there needs to be mutual agreement (trade) as mentioned in the Qur’an (Qur’an, 4:29). This is usually when there is clarity on all parts, and the quality of the product or service is acceptable to the one who is buying or hiring.

May Allah grant you the best of both worlds.

[Shaykh] Abdul-Rahim

Checked and Approved by Shaykh Faraz Rabbani

Shaykh Abdul-Rahim Reasat began his studies in Arabic Grammar and Morphology in 2005. After graduating with a degree in English and History, he moved to Damascus in 2007, where, for 18 months, he studied with many erudite scholars. In late 2008 he moved to Amman, Jordan, where he continued his studies for the next six years in Sacred Law (fiqh), legal theory (Usul al-fiqh), theology, hadith methodology, hadith commentary, and Logic. He was also given licenses of mastery in the science of Quranic recital. He was able to study an extensive curriculum of Quranic sciences, tafsir, Arabic grammar, and Arabic eloquence.