The Ruling on Penalty Clauses in Employment and Contracting Agreements
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Question:
This Shaykh may be referring to sales and purchase contracts, where one is penalized for, say, building a villa for a certain amount.
Answer:
I am a lover of buying, I am a lover of buying, and I have that condition. If he hires him for a job and sets a deadline for completing this work, but the worker or contractor delays, then if this is without negligence on his part and not by his choice, it is not permissible, it is not permissible to penalize him because he is excused. However, if this is due to his laziness or lack of concern, then some scholars permit imposing a penalty clause, stating that if he delays in performing the work within the time limit without an excuse, a deduction is made from him; it is not added to him, it is deducted, we deduct from him from the contract. Yes.
This Shaykh may be referring to sales and purchase contracts, where one is penalized for, say, building a villa for a certain amount.
Answer:
I am a lover of buying, I am a lover of buying, and I have that condition. If he hires him for a job and sets a deadline for completing this work, but the worker or contractor delays, then if this is without negligence on his part and not by his choice, it is not permissible, it is not permissible to penalize him because he is excused. However, if this is due to his laziness or lack of concern, then some scholars permit imposing a penalty clause, stating that if he delays in performing the work within the time limit without an excuse, a deduction is made from him; it is not added to him, it is deducted, we deduct from him from the contract. Yes.
Source
قناة «العلامة الدكتور صالح الفوزان»، حكم زيادة الثمن إذا تأخر عن السداد، وهل يدخل في ذلك الشرط الجزائي؟ الشيخ صالح الفوزان — youtube.com (1:11)
The Arabic text is a machine transcription of the audio recording.