The Ruling on the Association Established Among Employees
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Question:
The last question from our brother says: There is something called an association, and its description is that a group of employees agree among themselves to pay one member of the group one thousand or two thousand riyals for each member of the group to one member for the month of Muharram, for example, and in the month of Safar they pay the same amount to another member of this group. Does this fall under the hadith:?
Answer:
The correct view is that, if Allah wills, it does not fall under that. The Council of Senior Scholars has studied this issue and decided that there is no harm in it, if Allah wills, because it is a loan, with no increase. Rather, they are equal in this, so there is no harm in it, if Allah wills. Yes.
The presenter : Your Eminence! The reality is that these associations are very widespread, and it is mostly the case that if one of the members does not participate, they do not lend to him?
The Shaykh : Yes, because perhaps he pays them back in the department, or in the company, or something like that. So the result is that this one pays two thousand, and this one pays two thousand, and this one pays two thousand, and the next month is the same, and so on until they are finished. So there is no condition of increase; rather, they agreed on this specific loan which has no increase.
The presenter : But the condition between them is that you must participate in the payment monthly?
The Shaykh : That is it.
The presenter : And the one who does not participate is not given?
The Shaykh : Yes, this has no increase.
The presenter : And this is not considered a benefit?
The Shaykh : It does not harm the person, because it is a shared benefit, all equal, with no increase for one over another.
The presenter : May Allah bless you.
The last question from our brother says: There is something called an association, and its description is that a group of employees agree among themselves to pay one member of the group one thousand or two thousand riyals for each member of the group to one member for the month of Muharram, for example, and in the month of Safar they pay the same amount to another member of this group. Does this fall under the hadith:
Every loan that brings benefit is riba
كل قرض جر نفعًا فهو رباAnswer:
The correct view is that, if Allah wills, it does not fall under that. The Council of Senior Scholars has studied this issue and decided that there is no harm in it, if Allah wills, because it is a loan, with no increase. Rather, they are equal in this, so there is no harm in it, if Allah wills. Yes.
The presenter : Your Eminence! The reality is that these associations are very widespread, and it is mostly the case that if one of the members does not participate, they do not lend to him?
The Shaykh : Yes, because perhaps he pays them back in the department, or in the company, or something like that. So the result is that this one pays two thousand, and this one pays two thousand, and this one pays two thousand, and the next month is the same, and so on until they are finished. So there is no condition of increase; rather, they agreed on this specific loan which has no increase.
The presenter : But the condition between them is that you must participate in the payment monthly?
The Shaykh : That is it.
The presenter : And the one who does not participate is not given?
The Shaykh : Yes, this has no increase.
The presenter : And this is not considered a benefit?
The Shaykh : It does not harm the person, because it is a shared benefit, all equal, with no increase for one over another.
The presenter : May Allah bless you.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.