Ruling on an employee selling his goods to the institution where he works without its knowledge
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Question:
A man works at an institution for a fixed and known salary. Alongside his job, he purchases goods that the institution trades in, using his own funds, and delivers them to the institution as a trust—meaning under their disposal. After the goods are sold, he receives their value from the institution. All of this is known to the owner of the institution.
On one occasion, a person from outside the institution came to him and proposed that they jointly purchase a commodity, with the employee also placing it with the institution under their disposal. However, after considering the matter, they decided to sell the commodity to the institution through a definitive sale, rather than under their disposal. Naturally, this would result in a profit from the transaction. They agreed that the person from outside the institution would present the commodity to the institution’s manager, and the employee would not be apparent—meaning he would not reveal to the manager that he was a partner of the outside person in the transaction.
After the manager agreed to the purchase, the employee and the person from outside the institution took the value from the manager and purchased the commodity for the institution. This resulted in a profit, which the employee and the outside person shared, while the manager was unaware of the employee’s role and that he was benefiting from it.
Question: What is the ruling on this employee’s action? Is it betrayal? Was it obligatory for him to inform the manager before the transaction was completed, given that there is a difference between the price at which the commodity was purchased and the price at which it was sold to the institution, resulting in a profit that the employee and the outside person shared? Is he obligated to return the amount he profited? It is known that it is difficult for him to ask the manager for forgiveness and pardon.
Answer:
The apparent meaning of this question is that the employee and his partner sold the commodity to the institution’s manager before they had purchased it. This is not permissible because they sold what they did not own. It is authentically reported from the Messenger of Allah (peace and blessings be upon him) that he said:, and it is authentically reported that he said to Hakim ibn Hizam (may Allah be pleased with him) : Sunan Ibn Majah 2187Hasan (Darussalam).
However, if they had purchased it and taken possession of it as their property, and then the partner who does not work at the institution sold it to the institution’s manager, I do not know of any harm in that, even if the manager did not know that the employee had a partner in the commodity in question; because nothing follows from that that would prevent the validity of the sale. And success is from Allah.
A man works at an institution for a fixed and known salary. Alongside his job, he purchases goods that the institution trades in, using his own funds, and delivers them to the institution as a trust—meaning under their disposal. After the goods are sold, he receives their value from the institution. All of this is known to the owner of the institution.
On one occasion, a person from outside the institution came to him and proposed that they jointly purchase a commodity, with the employee also placing it with the institution under their disposal. However, after considering the matter, they decided to sell the commodity to the institution through a definitive sale, rather than under their disposal. Naturally, this would result in a profit from the transaction. They agreed that the person from outside the institution would present the commodity to the institution’s manager, and the employee would not be apparent—meaning he would not reveal to the manager that he was a partner of the outside person in the transaction.
After the manager agreed to the purchase, the employee and the person from outside the institution took the value from the manager and purchased the commodity for the institution. This resulted in a profit, which the employee and the outside person shared, while the manager was unaware of the employee’s role and that he was benefiting from it.
Question: What is the ruling on this employee’s action? Is it betrayal? Was it obligatory for him to inform the manager before the transaction was completed, given that there is a difference between the price at which the commodity was purchased and the price at which it was sold to the institution, resulting in a profit that the employee and the outside person shared? Is he obligated to return the amount he profited? It is known that it is difficult for him to ask the manager for forgiveness and pardon.
Answer:
The apparent meaning of this question is that the employee and his partner sold the commodity to the institution’s manager before they had purchased it. This is not permissible because they sold what they did not own. It is authentically reported from the Messenger of Allah (peace and blessings be upon him) that he said:
It is not lawful to combine a loan with a sale, nor to sell what you do not have
لا يحل سلف وبيع، ولا بيع ما ليس عندكDo not sell what is not with you.
لا تبع ما ليس عندكHowever, if they had purchased it and taken possession of it as their property, and then the partner who does not work at the institution sold it to the institution’s manager, I do not know of any harm in that, even if the manager did not know that the employee had a partner in the commodity in question; because nothing follows from that that would prevent the validity of the sale. And success is from Allah.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.