The Cooperative Employee Fund
Machine translationRead the Arabic original
Q: Since we have in the city of Yanbu Industrial a cooperative fund under the name (The Cooperative Employee Fund), and this fund provides repayable assistance to needy employees of the Royal Commission for the Yanbu Project, as well as providing loans to employees who are members of the fund. Our question is that we are confused by what you ruled in Fatwa No.
(18242), published in (Fatwas of the Permanent Committee for Scholarly Research and Ifta) (Part 13, page 419); because a member of the Yanbu Project Employee Fund pays an amount of (15 riyals), and this amount is deducted from his salary monthly, whether he borrows or not. If he borrows from the fund, he pays only the amount he borrowed, and pays the fifteen riyals as the value of the membership deducted in advance from the salary. For example: Zayd is a member of the fund, and (15 riyals) are deducted from his salary monthly. If he borrows an amount of money, he returns this amount as it is, without increase, while continuing to pay the amount of (15 riyals), which is not linked to the loan grant or its absence; due to the condition that the borrower must be a member, and he will pay it also after the completion of the loan repayment; because this amount - 15 riyals - has no relation to the loan, but rather it is an amount donated by the employee for the benefit of the charitable works supported by the fund, taking into consideration that repayable loans are not given except to members of the fund, and this is the only link mentioned earlier. Is this a loan that brings benefit? May Allah guide you and keep your steps steady. We inform you that the members of the fund, may Allah guide them, are aware of the issue and have agreed to present the matter to your Eminence, along with the organization established for the fund,
which includes the following: The Cooperative Fund Regulations for Employees of the General Administration of the Royal Commission Project in Yanbu: Article 1: Establishment of the Fund and its Headquarters: A cooperative fund is established in which those who wish from the Saudi employees working in the General Administration of the Royal Commission Project in Yanbu participate as members. Article 2: Objectives of the Fund: The fund aims to assist in providing financial support to employees of the General Administration of the Royal Commission Project in Yanbu in the following cases: "Immediate assistance when a disaster befalls one of the project employees, such as fire, unusual traffic accidents, or death, to be paid to the employee himself or his heirs." "Providing some loans to project employees who contribute to supporting the cooperative fund, in easy monthly installments." "Participating in supporting low-income families directly and through the prescribed zakah allocated and others." Article 3: Revenues of the Fund, its Funds, and Accounts: "The fund is financed through monthly deduction from the salary of an amount
(15 riyals), by authorizing the financial administration according to the forms prepared for this purpose, plus additional amounts donated by some contributors to be deducted from their salaries." "External gifts and donations." Article 4: No member of the fund has the right at any time to demand the return of the amounts they contributed to this fund. Article 5: The Fund Management Committee and its Jurisdictions: A committee consisting of a president and six members manages the fund, formed by a decision issued by His Excellency the General Manager of the Royal Commission Project in Yanbu, and among the members there is a vice president, a secretary, and a treasurer of the fund, and it has the authority to decide on everything presented to it, provided that its decisions are issued by majority, and in case of a tie, the side with the committee president prevails, knowing that the committee meeting is not valid unless the president or his delegate is present and two-thirds of the members are present. Article 6: The appointment of committee members is as specified in Article 5 for a period of three years, renewable for a maximum of four years.
Article 7: General Provisions: Anyone who contributes to the fund has the right to borrow from it if they are facing difficult financial circumstances, and this is by means of a written request submitted by the member clarifying the nature of the difficult circumstances they are facing, supported by documents, and the committee has the right to reject it after studying his request if it deems that the circumstances presented by the member requesting the loan do not justify lending to him or that they are not of an urgent nature, according to the committee's assessment. Article 8: The committee determines the value of the loan, its duration, and its repayment installments in light of the information available to it regarding the financial circumstances of the member requesting the loan. Article 9: The loan is repaid in monthly installments, in a period not exceeding a full Hijri year, provided that the deduction of the first installment begins after the expiration of two months from the date of granting the loan, and the claim of the borrowing member to repay the loans or his balance is waived if he dies or suffers from an illness or injury that incapacitates him from work, and in the case where the borrower wishes to leave the service of the Royal Commission or transfer from it, he must pay the full loan or
the remaining installments in one lump sum. Article 10: The granted loan is repaid at the specified repayment times by deduction from his monthly salary and to the account of the fund within the limits prescribed by the system. Article 11: The committee decides in its regular or extraordinary meetings to grant one of the employees of the administration working on the Yanbu Project a non-repayable allowance or financial assistance that provides one of the reasons for expenditure listed in the first item of Article 2 of these regulations, and this does not prevent requesting a loan from the fund according to the other conditions. Article 12: The borrower does not have the right to combine two loans at the same time. Article 13: An account is opened for the fund in one of the local banks of Yanbu Industrial City under the name (The Cooperative Fund for Employees of the General Administration of the Royal Commission Project in Yanbu), into which all amounts received for the benefit of the fund are deposited. Article 14:
Payment checks are issued from the fund's proceeds with two signatures, one for the committee president or his deputy (as the first signature), and the other for the treasurer of the fund (as the second signature). Article 15: The treasurer of the fund keeps a general register showing the movement of the fund's account from deposits and withdrawals, and also keeps a register of loans in which a separate page or more is allocated for each borrower, and he also keeps all receipts, bonds, minutes of committee meetings, and all documents related to the fund and the committee's work. Article 16: The treasurer of the fund conducts a monthly reconciliation of the fund's account balance with the bank statement and prepares a statement for reconciliation to be certified by the committee. Article 17: The committee prepares a semi-annual report covering all the committee's work and submits it to His Excellency the General Manager for review. Article 18: Work on disbursement from the fund begins after one year from the date of deduction from the salary, which is set for 1/7/1414 AH,
To support the fund's balance. Article Nineteen: The Committee shall hold semi-annual meetings to determine the expected disbursement rates for the coming six months, taking into account the priorities set forth in Article Two of these regulations. Article Twenty: The Committee has full authority to decide on any situation or case not addressed in these regulations. Article Twenty-One: In the event that the fund is dissolved for any reason, its balance shall be transferred to charitable associations in the Kingdom or to the small contributing employees whom the Committee deems worthy of assistance. Note: "It is known that the fund provides a non-refundable assistance of (5,000 riyals) five thousand riyals to any employee of the Royal Commission upon his death." The fund is based on voluntary, non-refundable donations from employees who wish to support the fund, it being known that all grants
provided by the fund are non-refundable.
A: After the Committee studied the letters of the Supervisor of the Department of Religious Affairs in the General Administration of the Yanbu Project, affiliated with the Royal Commission for Jubail and Yanbu : Abbas bin Fahd Rahim , bearing number (206-4010) and dated 6/11/1420 AH, and the letter bearing number (250-Sh D) and dated 29/1/1422 AH, and the one bearing number (3284/423) and dated 28/5/1423 AH, as well as the fund's regulations governing its operations, it issued a ruling that the fund's provision of non-refundable assistance to those in need is an act of good that Islamic Sharia encourages and urges, and the reward for it belongs to the contributors to the fund. The Committee recommends abolishing the condition that the borrower must be a contributor to the fund, as stated in Article (2) and Article (7). It is also necessary to reconsider what is stated in the last clause (2) regarding zakah, as zakah is not permissible to be paid to funds unless the condition is met that it is delivered to its rightful recipients from the eight categories immediately upon the fund receiving it.
(18242), published in (Fatwas of the Permanent Committee for Scholarly Research and Ifta) (Part 13, page 419); because a member of the Yanbu Project Employee Fund pays an amount of (15 riyals), and this amount is deducted from his salary monthly, whether he borrows or not. If he borrows from the fund, he pays only the amount he borrowed, and pays the fifteen riyals as the value of the membership deducted in advance from the salary. For example: Zayd is a member of the fund, and (15 riyals) are deducted from his salary monthly. If he borrows an amount of money, he returns this amount as it is, without increase, while continuing to pay the amount of (15 riyals), which is not linked to the loan grant or its absence; due to the condition that the borrower must be a member, and he will pay it also after the completion of the loan repayment; because this amount - 15 riyals - has no relation to the loan, but rather it is an amount donated by the employee for the benefit of the charitable works supported by the fund, taking into consideration that repayable loans are not given except to members of the fund, and this is the only link mentioned earlier. Is this a loan that brings benefit? May Allah guide you and keep your steps steady. We inform you that the members of the fund, may Allah guide them, are aware of the issue and have agreed to present the matter to your Eminence, along with the organization established for the fund,
which includes the following: The Cooperative Fund Regulations for Employees of the General Administration of the Royal Commission Project in Yanbu: Article 1: Establishment of the Fund and its Headquarters: A cooperative fund is established in which those who wish from the Saudi employees working in the General Administration of the Royal Commission Project in Yanbu participate as members. Article 2: Objectives of the Fund: The fund aims to assist in providing financial support to employees of the General Administration of the Royal Commission Project in Yanbu in the following cases: "Immediate assistance when a disaster befalls one of the project employees, such as fire, unusual traffic accidents, or death, to be paid to the employee himself or his heirs." "Providing some loans to project employees who contribute to supporting the cooperative fund, in easy monthly installments." "Participating in supporting low-income families directly and through the prescribed zakah allocated and others." Article 3: Revenues of the Fund, its Funds, and Accounts: "The fund is financed through monthly deduction from the salary of an amount
(15 riyals), by authorizing the financial administration according to the forms prepared for this purpose, plus additional amounts donated by some contributors to be deducted from their salaries." "External gifts and donations." Article 4: No member of the fund has the right at any time to demand the return of the amounts they contributed to this fund. Article 5: The Fund Management Committee and its Jurisdictions: A committee consisting of a president and six members manages the fund, formed by a decision issued by His Excellency the General Manager of the Royal Commission Project in Yanbu, and among the members there is a vice president, a secretary, and a treasurer of the fund, and it has the authority to decide on everything presented to it, provided that its decisions are issued by majority, and in case of a tie, the side with the committee president prevails, knowing that the committee meeting is not valid unless the president or his delegate is present and two-thirds of the members are present. Article 6: The appointment of committee members is as specified in Article 5 for a period of three years, renewable for a maximum of four years.
Article 7: General Provisions: Anyone who contributes to the fund has the right to borrow from it if they are facing difficult financial circumstances, and this is by means of a written request submitted by the member clarifying the nature of the difficult circumstances they are facing, supported by documents, and the committee has the right to reject it after studying his request if it deems that the circumstances presented by the member requesting the loan do not justify lending to him or that they are not of an urgent nature, according to the committee's assessment. Article 8: The committee determines the value of the loan, its duration, and its repayment installments in light of the information available to it regarding the financial circumstances of the member requesting the loan. Article 9: The loan is repaid in monthly installments, in a period not exceeding a full Hijri year, provided that the deduction of the first installment begins after the expiration of two months from the date of granting the loan, and the claim of the borrowing member to repay the loans or his balance is waived if he dies or suffers from an illness or injury that incapacitates him from work, and in the case where the borrower wishes to leave the service of the Royal Commission or transfer from it, he must pay the full loan or
the remaining installments in one lump sum. Article 10: The granted loan is repaid at the specified repayment times by deduction from his monthly salary and to the account of the fund within the limits prescribed by the system. Article 11: The committee decides in its regular or extraordinary meetings to grant one of the employees of the administration working on the Yanbu Project a non-repayable allowance or financial assistance that provides one of the reasons for expenditure listed in the first item of Article 2 of these regulations, and this does not prevent requesting a loan from the fund according to the other conditions. Article 12: The borrower does not have the right to combine two loans at the same time. Article 13: An account is opened for the fund in one of the local banks of Yanbu Industrial City under the name (The Cooperative Fund for Employees of the General Administration of the Royal Commission Project in Yanbu), into which all amounts received for the benefit of the fund are deposited. Article 14:
Payment checks are issued from the fund's proceeds with two signatures, one for the committee president or his deputy (as the first signature), and the other for the treasurer of the fund (as the second signature). Article 15: The treasurer of the fund keeps a general register showing the movement of the fund's account from deposits and withdrawals, and also keeps a register of loans in which a separate page or more is allocated for each borrower, and he also keeps all receipts, bonds, minutes of committee meetings, and all documents related to the fund and the committee's work. Article 16: The treasurer of the fund conducts a monthly reconciliation of the fund's account balance with the bank statement and prepares a statement for reconciliation to be certified by the committee. Article 17: The committee prepares a semi-annual report covering all the committee's work and submits it to His Excellency the General Manager for review. Article 18: Work on disbursement from the fund begins after one year from the date of deduction from the salary, which is set for 1/7/1414 AH,
To support the fund's balance. Article Nineteen: The Committee shall hold semi-annual meetings to determine the expected disbursement rates for the coming six months, taking into account the priorities set forth in Article Two of these regulations. Article Twenty: The Committee has full authority to decide on any situation or case not addressed in these regulations. Article Twenty-One: In the event that the fund is dissolved for any reason, its balance shall be transferred to charitable associations in the Kingdom or to the small contributing employees whom the Committee deems worthy of assistance. Note: "It is known that the fund provides a non-refundable assistance of (5,000 riyals) five thousand riyals to any employee of the Royal Commission upon his death." The fund is based on voluntary, non-refundable donations from employees who wish to support the fund, it being known that all grants
provided by the fund are non-refundable.
A: After the Committee studied the letters of the Supervisor of the Department of Religious Affairs in the General Administration of the Yanbu Project, affiliated with the Royal Commission for Jubail and Yanbu : Abbas bin Fahd Rahim , bearing number (206-4010) and dated 6/11/1420 AH, and the letter bearing number (250-Sh D) and dated 29/1/1422 AH, and the one bearing number (3284/423) and dated 28/5/1423 AH, as well as the fund's regulations governing its operations, it issued a ruling that the fund's provision of non-refundable assistance to those in need is an act of good that Islamic Sharia encourages and urges, and the reward for it belongs to the contributors to the fund. The Committee recommends abolishing the condition that the borrower must be a contributor to the fund, as stated in Article (2) and Article (7). It is also necessary to reconsider what is stated in the last clause (2) regarding zakah, as zakah is not permissible to be paid to funds unless the condition is met that it is delivered to its rightful recipients from the eight categories immediately upon the fund receiving it.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.