Is It Permissible To Work For Two Connected Companies?

Answered by Shaykh Muhammad Carr

Question

I have a question regarding my income. I used to work for a company for about seven years. This company sells a specific type of product. Two years ago, I found a second job while still employed at the first company, so I currently have two jobs.

My first company sells its products to my second company. Since I am familiar with these products, it helps me in my role at my second job. I also support the first company when any issues arise with the products sold to the second company.

Now that I receive salaries from both companies, I would like to know whether my income is halal. Please note that I have no intention of harming either company.

Answer

In the Name of Allah, the Most Merciful and Compassionate.

Thank you for your question.

The Prophet (Allah bless him and give him peace) said, “So give each person who has a right their due.” [Bukhari]

As long as there is no contractual restriction, no conflict of interest, and you do not represent both parties in any contract, it is permissible for you to work for both companies, even if they engage in business with one another, particularly when clearly defined mandates govern each role.

Scope of Conflict of Interest

The conflict of interest arises when one individual represents both parties at opposite ends of a contract. Such a person is expected to act in the best interest of the buyer by securing the lowest possible price, while simultaneously being obligated to serve the seller by obtaining the highest possible price—an inherently contradictory position. [See: Khatib, Mughni al-Muhtaj]

Unfortunately, there is a growing tendency to broaden the definition of conflict of interest to the extent that even a distant or incidental benefit—despite the integrity of the contract—is perceived as a hidden or ulterior motive. This often fosters unnecessary suspicion and severely undermines trust, essential for any form of meaningful mutual engagement.

According to Islamic Law, it is permissible for an agent to enter into a contract with his ascendants or descendants, just as it is permissible for him to sell to a friend. There is no basis for suspicion, as the transaction was conducted at a fair price—one that would have rendered the sale valid had it been made with a stranger. [Ibid.]

I pray this is of benefit and that Allah guides us all.
[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Faraz Rabbani

Shaykh Muhammad Carr has dedicated his life to studying and transmitting our beautiful deen. His studies have taken him around the globe, where he has benefitted from many luminaries. Under the guidance of his teachers – Shaykh Taha Karan, Shaykh Yaseen Abbas, Shaykh Muadh Ali, and many others – Shaykh Muhammad has grown to appreciate the beauty and benefits of diverse scholarship. He completed his memorization of the Qur’an at Dar al-Ulum Zakariyyah in September 1997 and received an Alimiyya Degree in 2006 from DUAI (Darul Ulum al-Arabiyyah al-Islamiyyah). He is also affiliated with Masjid Auwal in Bo Kaap, Cape Town (the oldest mosque in South Africa), where he serves as a co-imam, and Dar Al-Safa, where he has taught since 2018. As a teacher, he imparts the wisdom of our heritage and tradition by opening the door to students. As an imam, he has the unique opportunity to serve his community in daily life.

In addition to his roles as a teacher and imam, Shaykh Muhammad Carr has contributed significantly to the administrative and advisory aspects of Islamic institutions. Since 2023, he has served as the Administrative Director at The Imam Kurani Institute, contributing to the institution’s growth and development. He continues to pursue traditional Islamic Sciences, possessing a keen interest in Islamic Contract Law and Finance. Shaykh Muhammad has been a Shari‘a Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.