Employment contract

Q: A father has a business and employs his son as a manager of the business. The father stipulates the salary of the son as follows: 

On a monthly basis the son will receive as salary, R2000 (for example), which will escalate 10% yearly and together with that the son will share 50% of the profits yearly with the father, after deducting business expenses. Is this permissible?


A: It is permissible, however the 50% share of the profits after deducting expenses should not be included in his salary. Instead it should be regarded as a bonus that he will receive from the side of the employer.

And Allah Ta’ala (الله تعالى) knows best.

ولا تصح حتى تكون المنافع (اي في الإجارة) معلومة والأجرة معلومة (الهداية 3/293)

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)