Date : 08-03-2020

Question :

The company where we work established what it called "fines fund" where certain amounts are deducted from staff salaries as penalty for violating the company`s by-laws, such as absence from work, coming late and safety abuses. The money is used for the social welfare of the staff members in line with what the committee in charge of the Fund sees fit. Some members suggested initiating Umrah trips, but some argued that the money in the Fund could have been taken unjustly since the fee of three days is deducted against absence for one day and some employees are fined for violating safety measures while others aren’t. In light of this, what is the ruling of Sharia on initiating these trips from the money deposited in this Fund?

The Answer :

Praise be to Allah, The Lord of the Worlds.

The work of staff members is governed by particular rules and regulations that aim to keep the work of a company running properly. In light of Sharia, both the staff and the company`s administration are required to abide by these rules and regulations because the contract serves as the law for the contracting parties. The evidence on is that the Messenger of Allah (PBUH) said, "The Muslims will be held to their conditions."{Sahih Bukhari}.

In conclusion, if these fines are deducted in line with the rules that regulate the company`s activities and stipulated in employment contracts then there is  nothing wrong with depositing them in  a special fund to be spent later without favoring certain staff members over others. Thus, it is permissible to use this money to cover the costs of Umrah trips. We advise those in charge of implementing the penalties to fear Allah, adhere to the agreed upon rules and uphold justice amongst staff members in this regard. And Allah, The Almighty knows best.