Taking a fee for agency
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Fatwa number ( 20788 )
Q: Some agents for employees' salaries take a deduction from the principal's salary, for example, twenty riyals. So, if that employee's (the principal's) salary is 2000, the agent takes twenty riyals from his salary, for example, in exchange for the service he performs. And if the salary is delayed past its payment date, the agent pays the salary to the principal from his own funds, on the condition that he takes the aforementioned deduction. What is the ruling on this, may Allah preserve you?
A: What the agent takes from the employee-principal's salary after receiving the salary and delivering it to him is permissible in the Shari'ah, provided they agree on it and on the amount of the fee he takes; because that is in exchange for the benefit he provided to the principal. However, if the salary is delayed and the agent pays it to the principal from his own funds after
deducting his agency fee from his salary, and then receives the full salary afterwards, then that is riba (usury or interest), and it is forbidden to deal in it; because the reality of that is that he lent him money and recovered more money than he lent, and that is the very essence of riba, and every loan that brings a benefit is riba. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: Some agents for employees' salaries take a deduction from the principal's salary, for example, twenty riyals. So, if that employee's (the principal's) salary is 2000, the agent takes twenty riyals from his salary, for example, in exchange for the service he performs. And if the salary is delayed past its payment date, the agent pays the salary to the principal from his own funds, on the condition that he takes the aforementioned deduction. What is the ruling on this, may Allah preserve you?
A: What the agent takes from the employee-principal's salary after receiving the salary and delivering it to him is permissible in the Shari'ah, provided they agree on it and on the amount of the fee he takes; because that is in exchange for the benefit he provided to the principal. However, if the salary is delayed and the agent pays it to the principal from his own funds after
deducting his agency fee from his salary, and then receives the full salary afterwards, then that is riba (usury or interest), and it is forbidden to deal in it; because the reality of that is that he lent him money and recovered more money than he lent, and that is the very essence of riba, and every loan that brings a benefit is riba. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.