Fatwa #1437314 July 2006Trinidad and Tobago
Can you please advise on the following business matter concerning muslims :
Question
Can you please advise on the following business matter concerning muslims :
An employer approaches a person to work for his business operated by his brothers and himself (family business).
They approach the person a few times, inviting him to their office and speaking to him very nicely and encouraged him to join their business as an employee and tells him they will treat him like family and offers a package (salary) and indictes that one of the brothers intend to go away on deeni studies and they need the person to fill the gap. Also, it is a permanent not temporary position. After a few years (3) , they decide to separate the business and mentions to the person to continue working ,as the business needs his services. The brother who now runs the business ,after one year ,in a very disrepectful manner informs the person that his services is no longer required, saying "your position is redundant "and that he has to leave by the end of the year (3 mths. time). A sum of money is given to the person fixed by the employer and the person leaves,immediately.
Q) what is the shariah ruling on such a transaction? did the employer act proper. What recourse does the employee have according to the shariah if any?where did the employer/s and or the employee err?
Answer
It is improper for us to comment until we have a look at the employment contract. It is important to see what the terms of employment were and or whether there are other relevant clauses to this effect. You may forward a copy of the contract and we would respond thereafter.
And Allah Knows Best
Muhammed Zakariyya Desai