What is the ruling on one who brings in workers and opens a shop for them in his name, where they work in it and the profit is shared between him and them?
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The questioner : May Allah reward you, O honorable Shaykh. What is your opinion regarding one who brings workers from abroad and opens a commercial shop for them, and they divide the work among themselves? The guarantor only strives to open the shop and secure the work, while the workers carry out the work and obtain the profit. They then pay the guarantor a fixed amount deducted from the profit, as he conditions upon them, and they divide the remainder among themselves. It is known that the shop expenses, residence renewal fees, and matters related to government departments are handed over to an office that handles them and takes responsibility for them at the workers' expense. May Allah reward you with good.
The Shaykh : Yes. First, we ask: Does the government permit such work? This is the first thing. If it does not permit it, it is not permissible, because Allah says:[An-Nisa 4:59] And we have a pledge of allegiance to the rulers in our necks to obey and listen, except if they order us to disobey. Some people say that the state has no right to prohibit what Allah has made lawful, because partnerships are permissible. We say: This is correct; partnerships are permissible. But if the state sees it in the public interest that one who is not from the country should not undertake this, considering the many problems that occur, as is the case now—how many come to us complaining about their guarantors for this reason—then obedience to it in that matter is obligatory. If the state permits it, considering the circumstances, we look at whether he will deduct a known amount from the profit, such as saying: "Each of you will pay me one thousand riyals a month, or one hundred riyals a month, or ten riyals a month," and the rest of the profit is yours. If it is so, it is forbidden, because such a partnership is not permissible, even among citizens. However, if he makes it a share of it—meaning he provides the capital and manages the trade, but these are the ones who carry out the work—and he gives them a share of it, such as a quarter of the profit, or half, or a third, the important thing being that it is a shared share where they participate in the gain and the loss, then there is no harm in it. Did you understand?
So it is not permissible in two cases. The first case: What is it? If the government prohibits it, it is not permissible.
The second case: If he makes it a known amount, whether the profit increases or not, this is also not permissible. What is permissible is what meets two conditions. The first condition: That the government permits it. The second condition: That his share is a shared portion, such as a third or a quarter, so that he and the workers participate in the gain and the loss.
This is after we all know that the funds and facing the government and others are upon whom? Upon whom? Upon the guarantor. The guarantor is the one who gives them the money, and the profit is between them, because this is a type of mudarabah, and mudarabah is permissible. Yes.
The Shaykh : Yes. First, we ask: Does the government permit such work? This is the first thing. If it does not permit it, it is not permissible, because Allah says:
O you who have believed, obey Allah and obey the Messenger and those in authority among you
يَا أَيُّهَا الَّذِينَ آمَنُوا أَطِيعُوا اللَّهَ وَأَطِيعُوا الرَّسُولَ وَأُولِي الْأَمْرِ مِنْكُمْSo it is not permissible in two cases. The first case: What is it? If the government prohibits it, it is not permissible.
The second case: If he makes it a known amount, whether the profit increases or not, this is also not permissible. What is permissible is what meets two conditions. The first condition: That the government permits it. The second condition: That his share is a shared portion, such as a third or a quarter, so that he and the workers participate in the gain and the loss.
This is after we all know that the funds and facing the government and others are upon whom? Upon whom? Upon the guarantor. The guarantor is the one who gives them the money, and the profit is between them, because this is a type of mudarabah, and mudarabah is permissible. Yes.