Fiqh of Business
Mufti Abu Muhammad Ali Asghar Attari Madani
Pension Schemes and Ownership
Q: What do the noble scholars say about this matter: what is the Islamic ruling on pensions; is it permissible to take money from pension schemes, and who owns the pension after the employee’s death? Will it be distributed amongst his inheritors, or will it be in the ownership of his now widowed wife?
اَلْجَوَابُ بِعَوْنِ الْمَلِکِ الْوَھَّابِ اَللّٰھُمَّ ھِدَایَۃَ الْحَقِّ وَالصَّوَابِ
A: The pension an employee receives from the government after he retires is a reward and gift. It is permissible to take it, and the employee will be its owner. If the employee dies, the owner of the pension will be the one to whom it is given. If the husband’s pension is given to his wife after he dies, she will be the sole owner. Therefore, in this scenario, the pension received by the widow will not be distributed amongst his inheritors because it now belongs to the widow.
وَاللہُ اَعْلَمُ عَزَّوَجَلَّ وَ رَسُوْلُہٗ اَعْلَم صلَّی اللہ علیہ واٰلہٖ وسلَّم
GP Funds and Zakat
Q: What do the noble scholars say about this matter: what is the ruling on the money from GP funds; is it something we own? Is it permissible to take and who will pay its zakat?
اَلْجَوَابُ بِعَوْنِ الْمَلِکِ الْوَھَّابِ اَللّٰھُمَّ ھِدَایَۃَ الْحَقِّ وَالصَّوَابِ
A: A fixed amount of money from the salary of the employee is deposited into the GP fund. The institute contributes an equal amount, combining the money from both parties together in one bank. The profit earned from this is also given to the employee. After this explanation, the ruling is that the original money deposited from the salary of the employee, and the equal amount given by the company are both in the ownership of the employee and it is halal for him to take. It is not the case that it is money that belongs to someone else; rather it is his own money that has been separated under a certain system. The money is in the ownership of the employee, and it is in his account. The employee must fill in forms to decide whether he wants to take or reject interest. Hence, if the conditions of paying zakat are found for this money, it will be necessary to pay it. He will also have to deal with matters that concern him as being the owner. However, one dispensation of zakat is that it is not necessary (wājib) to pay zakat on this money if it is not received in full or at least equivalent to a fifth of the threshold (niṣāb). But, when it reaches that amount, zakat of all the previous years must be paid. Therefore, if one has to pay zakat on other forms of wealth, he should pay zakat on the amount that has been accumulated in the GP fund every year. This ensures that it is not difficult for him to pay zakat for everything at once. Nevertheless, zakat is not paid on any interest that is received, as zakat is only given on pure wealth.
It should be noted that the profit received after both parties deposit a given amount of money into the bank is interest. This is because keeping the money in a bank is a loan, and to earn a benefit from the loan is interest. Therefore, when the employee receives the entire amount of money, he must give the money acquired from interest to a destitute person, without the intention of gaining reward. If the company gives you the option to not add interest to your money, you must take this option.
وَاللہُ اَعْلَمُ عَزَّوَجَلَّ وَ رَسُوْلُہٗ اَعْلَم صلَّی اللہ علیہ واٰلہٖ وسلَّم
Launderer Damages Client’s Clothes?
Q: What do the noble scholars say about this matter: if a launderer ruins, tears, or burns your clothes, who will be liable to pay compensation?
اَلْجَوَابُ بِعَوْنِ الْمَلِکِ الْوَھَّابِ اَللّٰھُمَّ ھِدَایَۃَ الْحَقِّ وَالصَّوَابِ
A: When money orders were first introduced in the era of Imam Ahmad Raza Khan رَحْمَةُ الـلّٰـهِ عَـلَيْـه, the question about their permissibility in Islam arose. At that time, unlike others, Imam Ahmad Raza Khan رَحْمَةُ الـلّٰـهِ عَـلَيْـه did not declare money orders to be a form of interest, but rather he declared them a service offered by the post office for which it merely charges a service charge that is absolutely permissible in Islam. His response to the issue formed a detailed epistle which he entitled ‘al-Muna wal-Durar li man ‘amada Money Order’ and which can be found in the 19th volume of his collection of verdicts, Fatawa Razaviyyah.
Following on from his initial assessment on the matter, an objection arose which he duly addressed in his epistle. The objection was that (if the charge paid to the post office is classified as a service charge rather than interest) the money given to post office to send to someone would be classified as a trust given to it, and if something entrusted gets lost, the rule is that compensation is not due as a result. However, with money orders, the post office is in fact required to compensate for any lost amount (which appears to be at odds with the fee being classified as a service charge). In response to this objection, Imam Ahmad Raza Khan رَحْمَةُ الـلّٰـهِ عَـلَيْـه presented such pearls of knowledge and wisdom that are unmatched in the latter era of Islamic jurisprudential research, proving that concession can be given to render these services permissible within the framework of the Hanafi school of jurisprudence.
He explained that if a service provider and their customer agree that compensation will be due in the case of any loss, then compensation can be taken in such arrangements. Therefore, in the case in our question above, if this matter is agreed beforehand by both parties, compensation for any loss will be due on the service provider (the launderer) if any damage occurs.
The Imam quotes from classical Hanafi authorities that, “If a precondition has been set, then there is a consensus of scholars that he (the service provider) will be required to compensate. Jāmiʿ al-Fatāwā wa al-Nawāzil, al-Ashbāh wa al-Nadhāʾir, and others have reached this very conclusion.”[1]
He further states: “A post office is an establishment that is set up to provide a service to multiple people simultaneously. The fees they charge are undoubtedly a service charge. The post office agreeing to be held responsible in case of loss, and the valid ruling of shariah based on the reliable scholarly opinions quoted, are sufficient in necessitating compensation (in case of loss).[2]
وَاللہُ اَعْلَمُ عَزَّوَجَلَّ وَ رَسُوْلُہٗ اَعْلَم صلَّی اللہ علیہ واٰلہٖ وسلَّم
Shar’i Ruling on Trading Crypto Currency
Q: What do the noble scholars say about this matter: what is the Islamic ruling on trading crypto currency?
اَلْجَوَابُ بِعَوْنِ الْمَلِکِ الْوَھَّابِ اَللّٰھُمَّ ھِدَایَۃَ الْحَقِّ وَالصَّوَابِ
A: According to Dar ul-Ifta Ahl ul-Sunnah, Tahqeeqat Shari’ya, trading crypto currency is impermissible because of its evident elements of deception. Although we acknowledge the growing role of digital services, such as servers for websites and domains for emails that are paid for. These services are commonly used and are free of deception, unlike crypto currency. Thus, it is impermissible to buy and sell crypto currency. Muslims must stay away from it.
وَاللہُ اَعْلَمُ عَزَّوَجَلَّ وَ رَسُوْلُہٗ اَعْلَم صلَّی اللہ علیہ واٰلہٖ وسلَّم
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