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Shafi'i Fiqh

Ruling when Staff Association Pays Tuition Fees on Behalf of its Members

A staff association pays tuition fees on behalf of its members through what is called "Ju`alah contract." This association concludes an agreement with some schools whereby it registers the children of its staff members, there, according to the following criteria: 1-The school grants a discount on the tuition fees to students registered through the association. 2- The association commits itself to paying all tuition fees on behalf of the students registering through it. 3-The value of the fees is collected from the salaries of the association`s staff members as one payment or by monthly installments without any increase. Moreover, the members get the full benefit of the tuition discount, even if they paid by installments, while the association receives a commission in exchange for every student it registers in the school. What is the ruling of Sharia on this?

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