What is the ruling on a man who opens shops for workers in exchange for the worker paying one thousand or five thousand riyals per month? What is the ruling?

The questioner : ... regarding a person who has an establishment that constantly opens shops. He brings the shop supplies and brings people to work in this section. He says: "You must work in this section—for example—and I will take four thousand or five thousand from you each month," and he takes it from them. Is this permissible?

The Shaykh : May Allah reward you, this is forbidden (haram). It is forbidden (haram) for a person to open a shop, bring in a worker to work in it, and say: "You must pay me one thousand riyals each month—for example—or two thousand, or less, or more." This is forbidden (haram) by the Shari'ah and forbidden (haram) by the system. The state does not allow this. If the worker is a foreigner, and if he is a national, it is forbidden (haram) from the perspective of the Shari'ah, so it is not permissible. Yes, if it were assumed that he prepared the capital, then brought in a person and said to him: "O so-and-so, work with this capital on a fifty-fifty basis; half the profit is for you and half the profit is for me, or three-quarters of the profit is for you and a quarter is for me," there is nothing wrong with that. This is a profit-sharing partnership (mudarabah).

The questioner : ...

The Shaykh : Originally, entering into the contract in the first manner is forbidden (haram).