Is it permissible for an employee in a shop to have a salary and a percentage of the profit at the same time?
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The questioner : May the Shaykh, I am an employee working for a salary of three thousand riyals and 5 percent of the profits, is that...?
The Shaykh : And what is five percent?
The questioner : Of the percentage of profits.
The Shaykh : Profits of what?
The questioner : Profits of the shop.
The Shaykh : Are you an employee in a shop?
The questioner : An employee in a shop with a salary and a percentage, is this matter permissible?
The Shaykh : By Allah, it requires consideration, because the implication of the scholars' words in the issue of partnership is that it must be by share. Instead of having, for example, a salary of three thousand riyals and 10 percent of the profit, he tells you 50 percent of the profit without a salary, this is correct. Or he tells you a fixed salary, meaning you have nothing of the profit; the entire profit belongs to the owner of the shop, and you are his wage-earner, there is no harm in that. But to give you a salary along with a portion of the profit, this requires consideration of the issue, perhaps it will be opened up for us.
This brother Musa says: The time has ended. Yes, Glory be to You, O Allah, and with Your praise I testify that there is no god but You. I seek Your forgiveness and I repent to You.
The Shaykh : And what is five percent?
The questioner : Of the percentage of profits.
The Shaykh : Profits of what?
The questioner : Profits of the shop.
The Shaykh : Are you an employee in a shop?
The questioner : An employee in a shop with a salary and a percentage, is this matter permissible?
The Shaykh : By Allah, it requires consideration, because the implication of the scholars' words in the issue of partnership is that it must be by share. Instead of having, for example, a salary of three thousand riyals and 10 percent of the profit, he tells you 50 percent of the profit without a salary, this is correct. Or he tells you a fixed salary, meaning you have nothing of the profit; the entire profit belongs to the owner of the shop, and you are his wage-earner, there is no harm in that. But to give you a salary along with a portion of the profit, this requires consideration of the issue, perhaps it will be opened up for us.
This brother Musa says: The time has ended. Yes, Glory be to You, O Allah, and with Your praise I testify that there is no god but You. I seek Your forgiveness and I repent to You.