Question ID: 31354
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Respected Mufti Sahib,
As-Salaamualaykum. I praise Allah and send salutations upon His final messenger SAW and his entire family and upon all of his companions.
I will present the question in point form as there are various aspects:
1. Eleven years ago I was approached by my uncle-in-law to enter into a partnership with him. This would require me to manage the business.
2. Since I did not invest any money and he did, It was agreed: ??my money, your sweat?� and we agreed upon a 50% share for each of us.
3. We spoke to Ulama and I was informed that the profit would be split as follows: At the end of the year, my wages would be deducted from my half of the profit and he would receive his half. i.e. I would receive half, minus my wages and my wage would therefore be considered to be part of my profit. I was informed that this is Mudarabah. I still wonder how this works as, usually in any business, wages are considered to be part of the expense of a running enterprise. That should then mean then at the end, whatever profit remains, we divide by two. This is not how it happened. What is your ruling in this regard?
4. My understanding of a partnership in terms of the Shariah is that we are partners in good times and in bad times. We share in the profit and we share in the loss. Is this a correct understanding? Ive also always questioned myself asking if he had the right to continue this deal indefinitely even though he recovered his initial investment several times over.
5. In 2010, I was prepared to make a cash injection into the business so as to consider it a financial investment in the business and I was turned down.
6. During the last financial year, he asked me not to put money aside to share at the end of the year but to purchase stock instead. I did this. So the stock on the shelf is now worth far more than before.
7. In all this time, I was required to make some of my purchases from his main business, at a profit and benefit to him.
8. In February this year we took stock. The business did not show healthy profits. I guess this is the trend not only nationally, but internationally and especially in Newcastle where unemployment has risen sharply. As a result of the business not doing well, he informed me via the accountant that I am fired.
9. In terms of the agreement made according to the laws of Allah, where we consulted Ulama who bore witness that I am a partner in the business, can he fire me? My understanding being that he cant.
10. I refuse to be subject to what he has done and return to the business due to the mistrust I now have. What, if anything, is due to me? I ask this since there is accumulated stock on the shelves.
11. I was paid my entire salary at the end of March for March. I was ??fired?� on March 23, 2012. He also sent me the wages for April, as I requested this as money due to me. He informs me that I am going against the Shariah.
12. I have been advised to seek aid from the CCMA. What is your view on this and/ or the possibility of approaching this legally? I am without work/ income.
Your ruling will be appreciated. May Allah exalt you. May He forgive us and reward you immensely.
Was-Salaam,

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Asked on November 16, 2012 12:01 pm
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Private answer
1) In partnership there is allowance NOT wages.
2) Both share profit and loss.
3) If you bought stock from your salary, how did you survive and are you not shareholder in the stock.
Depending on the initial contract the terms of hiring/firing can be resolved.
5) You area has Ulema. Both agree on an Alim to mediate and follow respective ruling.
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Answered on November 16, 2012 12:01 pm