Earning continuous commission from recruits

Jan 5, 2022 | Employment / Commission

Question:-

I am an agent for a health care and beauty products company. Whenever I recruit an agent for the company, then I also enjoy a certain percentage as commission from their sales, due to the agent falling under my team. How does the Shariah view such commission?

Answer:-

Our answer pertains particularly to whether earning a commission from recruits is permitted or not. We are in no way sanctioning or approving of the health care or beauty products been marketed by you.

If you recruit agents, who in turn recruit agents, and so on and so forth, then taking a percentage of their sales commission simply on the basis that they fall under your team is incorrect.

Yes, if you recruit agents and you then sell the products (if of a permissible nature) to them at a profit (that is after purchasing the goods from the company), or you pick up the products from the supplier and deliver it to them at a stipulated fee etc. then there is no harm in doing so. However, it will not be correct to take a commission from agents (without engaging in any work whatsoever) simply on the basis that they fall under your working team.

Another option would be for the marketing company to voluntarily gift you a certain amount of money as a gesture of goodwill for the sales been generated by your team members. You must bear in mind that this will be considered as a voluntarily act, hence the amount will be left totally to their discretion. To re-iterate, due to this being a voluntarily act, you have no claim whatsoever against the company, nor are you entitled to any compensation. If they wish to gift you they may do so, otherwise not.

These are some of the possible options that come to mind.

ALLAH TA’ALA KNOWS BEST!

 ANSWERED BY:

Mufti Mohammed Desai

Date: 02 Jumadal Ukhra 1443 / 05 January 2022

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