Q: Theres a person who works at a school and decided to leave with a two week notice. The contract states 3 months notice period, which is not correct according to the labour law. The labour law states a months notice. However the board have decided that if the notice period is not served, the employee must pay them 3 months salary. The current month will not be paid and another 2 months the employee must pay them. Is this condition of release of an employee correct in the light of shariah?
A: The employee should fulfil the condition of the contract. If he did not fulfil the condition (of giving three months notice) and left after two weeks, he will not be entitled to receive a salary for the time he did not work. However, despite him not fulfilling the condition, it is not permissible for the school to charge him any amount of money for not fulfilling the condition. If they charge him, the amount charged will be haraam and will be regarded as riba.
And Allah Ta’ala (الله تعالى) knows best.
Answered by:
Mufti Zakaria Makada
Checked & Approved:
Mufti Ebrahim Salejee (Isipingo Beach)