What is the ruling in Islamic law regarding continuing a work contract with a company whose operations are divided into multiple entities, where it later becomes apparent that part of the company’s structure and financial dealings were unknown at the time the contract was entered into, and where there is uncertainty concerning the permissibility of one portion of those dealings? Is it permissible to continue working under such a contract, or is it obligatory to terminate it once this information becomes known?
In Short: Islam permits continuing a contract after discovering company issues if the income is derived solely from halal activities. Any portion linked to haram sources must be examined, avoided, or separated.
May Allah reward your concern for halal income.
If the business and contracts of the 70% entity are Sharia-compliant, then any earnings from it—such as salary, dividends, or profit-sharing—are halal, provided there is no Riba, gambling, deception, or unlawful products involved.
However, the 30% entity requires careful examination. You need to determine its activities, whether any revenue comes from prohibited transactions (such as interest-based insurance or investments), and whether this entity contributes to your compensation.
If your pay is derived solely from halal sources, it remains halal; if it is mixed with clearly haram income, that portion becomes problematic. As stated, “The lawful is clear and the unlawful is clear…” (Al-Bukhari and Muslim).
- Here are some practical next steps:
- Request written clarification on the activities of both entities and how your compensation is structured.
- If anything is unclear or appears mixed, consult a qualified Islamic finance scholar to review your contract.
- If the 30% entity is confirmed to be haram, consider limiting your role and compensation to the halal side, or exiting that portion entirely.
In summary, income linked to the compliant 70% is halal, while the 30% requires verification. If it is haram, distance yourself from it. If it is permissible, or if you can limit your compensation accordingly, you may proceed with confidence. May Allah grant you Barakah and open clear, halal doors.
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