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:
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.
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.
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?
