Claiming compensation from employer for cancelling holiday

Oct 31, 2022 | Employment / Commission

Question:-

  1. I have been working at a medical practice for about 11 months. During September, I approached my boss about taking leave and told him that he should tell me whenever he wants me to go, as I didn’t have any specific dates that I needed to be off for. He said that I should take off on the first week of November. My wife is also working and we arranged for her to take the same time off so that we could spend our leave together. Once we confirmed the dates with both our bosses, we booked a holiday. However, in the last week of October, my boss came in and told me that I need to cancel my holiday and that I can’t take leave as he needs me around because he’s firing a co-worker. I told him that I already booked a holiday and that it was non-refundable. If  he needed me to cancel he would have to compensate me. He agreed to do so but still hasn’t, up until this current moment. I waited a few days after he told me this and when he hadn’t paid, I decided to sell the holiday so that I may recoup the money. My question is, if he does decide to pay me now, is it permissible for me to accept that money,  or is that money Haraam because I sold off the holiday?

Answer:-

You informed your employer that the holiday was non-refundable hence, you will lose your money if you were to cancel the holiday. It is on this basis that he agreed to compensate you as he was the means of the cancellation. Now that you have sold your holiday, you shouldn’t request any compensation from him, particularly if you have recovered your money in full. Yes, you may claim your losses if you incurred any in selling the holiday. Notwithstanding the above, if he willingly compensates you in full (after you inform him of the sale of the holiday) then, it will be fine for you to accept the funds.

ALLAH TA’ALA KNOWS BEST!

ANSWERED BY:

Mufti Mohammed Desai

Date: 05 Rabi-ul-Aakhir 1444 / 31 October 2022

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