What is the ruling on receiving a "settlement allowance," which is a sum given to a new employee to establish his new home?
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The questioner : This is a very important issue. It also occurs in Qatar, where when someone retires, for example, an engineer, a doctor, an employee, or a teacher, they give them what is called a settlement allowance. For instance, they might give him thirty thousand to establish a home. This employee often finds that this amount exceeds his need, so he goes to a shop and obtains a fake receipt or invoice listing items worth thirty thousand. Then he takes this invoice to the designated place, to the specific employee in charge, and the amount is disbursed. He then buys items for about five or six thousand and keeps the rest for himself. This scenario is frequently asked about.
The Shaykh : The answer, within the limits of what you have explained, is that it is not permissible. However, the beginning of your statement seems to contradict the end. Repeat the first part for me: an employee is given a settlement allowance?
The questioner : An employee is given a settlement allowance, meaning this amount is for him to establish a home with it.
The Shaykh : When is it given to him?
The questioner : When he arrives in the country and starts working at the beginning of his employment. Of course, this applies to some employees, not all.
The Shaykh : That is what concerns us.
The questioner : So this amount...
The Shaykh : One by one. Of course, he needs to complete procedures to become a proper employee, right?
The questioner : Yes.
The Shaykh : Of course, it is not just that he calls the official and says, "I want to work for you," and the official says, "Go ahead." It is necessary to know his nationality, his job, his specialization, his certificates, and so on. After all these procedures, his name is registered as an employee in this department with a salary of such-and-such.
The questioner : No, he is coming from his country originally under contract.
The Shaykh : All roads lead to the mill, and this is better for me. May Allah reward you. No problem, he arrived, meaning a good employee came. As soon as he contacts the official, what do they give him?
The questioner : They give him a settlement allowance or a specific receipt with which he takes the settlement allowance.
The Shaykh : This is what I find difficult, because I understood from your last statement the opposite of your first. How much is the settlement allowance they give him?
The questioner : They did not give him a specific amount, but he has the right to have a settlement allowance on the condition that he brings these items. That is, he presents an invoice for this amount, let us say ten thousand or thirty thousand.
The Shaykh : No, I think there is something in this matter, because I know that in all countries there is a fixed settlement allowance. That is, when professors go, they are given a monthly salary plus housing.
The questioner : It is not fixed in this country. It is not fixed.
Another questioner: The man is given a grant they call, or a settlement allowance. This grant is not cash or a check in his name. No, meaning he must go through a furniture shop, buy from it, and bring invoices showing that he bought with this amount. He takes these invoices or this list to the department and says, "These are the things I bought." Or, of course, he deceives them or presents them to them. At that time, they disburse a sum of money to him. It is not for him personally, but for the company. He goes to the company, gives them the check, and they pay the owner of the company a sum of money, five thousand or more or less, depending on his goods...
The Shaykh : I understood this. What was the answer? I understood this, but I am afraid. I gave you the answer that it is not permissible, and I still say it is not permissible. But it does not enter my mind that the case is like this. I am, as they say in our region in Sham, "I am overwhelmed by the majority." I am overwhelmed by the majority. What do I do with these details? The fatwa is according to the text. You are presenting the text, and I gave you the answer that it is not permissible. But whether it is like this or not, Allah knows, it does not enter my mind. Okay, they are not giving him housing, or is the housing also at his discretion? Okay, is the housing unfurnished?
The questioner : They give him unfurnished housing.
The Shaykh : And who pays the rent for the housing?
The questioner : The same way. Something like this happens.
The Shaykh : The same way again. May Allah help them with these fraudsters.
The Shaykh : The answer, within the limits of what you have explained, is that it is not permissible. However, the beginning of your statement seems to contradict the end. Repeat the first part for me: an employee is given a settlement allowance?
The questioner : An employee is given a settlement allowance, meaning this amount is for him to establish a home with it.
The Shaykh : When is it given to him?
The questioner : When he arrives in the country and starts working at the beginning of his employment. Of course, this applies to some employees, not all.
The Shaykh : That is what concerns us.
The questioner : So this amount...
The Shaykh : One by one. Of course, he needs to complete procedures to become a proper employee, right?
The questioner : Yes.
The Shaykh : Of course, it is not just that he calls the official and says, "I want to work for you," and the official says, "Go ahead." It is necessary to know his nationality, his job, his specialization, his certificates, and so on. After all these procedures, his name is registered as an employee in this department with a salary of such-and-such.
The questioner : No, he is coming from his country originally under contract.
The Shaykh : All roads lead to the mill, and this is better for me. May Allah reward you. No problem, he arrived, meaning a good employee came. As soon as he contacts the official, what do they give him?
The questioner : They give him a settlement allowance or a specific receipt with which he takes the settlement allowance.
The Shaykh : This is what I find difficult, because I understood from your last statement the opposite of your first. How much is the settlement allowance they give him?
The questioner : They did not give him a specific amount, but he has the right to have a settlement allowance on the condition that he brings these items. That is, he presents an invoice for this amount, let us say ten thousand or thirty thousand.
The Shaykh : No, I think there is something in this matter, because I know that in all countries there is a fixed settlement allowance. That is, when professors go, they are given a monthly salary plus housing.
The questioner : It is not fixed in this country. It is not fixed.
Another questioner: The man is given a grant they call, or a settlement allowance. This grant is not cash or a check in his name. No, meaning he must go through a furniture shop, buy from it, and bring invoices showing that he bought with this amount. He takes these invoices or this list to the department and says, "These are the things I bought." Or, of course, he deceives them or presents them to them. At that time, they disburse a sum of money to him. It is not for him personally, but for the company. He goes to the company, gives them the check, and they pay the owner of the company a sum of money, five thousand or more or less, depending on his goods...
The Shaykh : I understood this. What was the answer? I understood this, but I am afraid. I gave you the answer that it is not permissible, and I still say it is not permissible. But it does not enter my mind that the case is like this. I am, as they say in our region in Sham, "I am overwhelmed by the majority." I am overwhelmed by the majority. What do I do with these details? The fatwa is according to the text. You are presenting the text, and I gave you the answer that it is not permissible. But whether it is like this or not, Allah knows, it does not enter my mind. Okay, they are not giving him housing, or is the housing also at his discretion? Okay, is the housing unfurnished?
The questioner : They give him unfurnished housing.
The Shaykh : And who pays the rent for the housing?
The questioner : The same way. Something like this happens.
The Shaykh : The same way again. May Allah help them with these fraudsters.