Employment related matters

Question:-

1. A person is working in a shop and has been given permission by the boss to purchase items on his behalf for the shop with the shop’s money. However, this person, on his day off, goes with his personal car, purchases items with his own money and then sells it to the shop which he works for, with a mark up. The boss is aware that he is making a profit from it, is this permissible?

2. Can the boss cut one employee’s salary and not the rest. The boss cuts the salary saying that the shop is not doing well financially. Is this fair that the boss cuts one employee’s salary and not the rest of the workers?

Answer:-

1. It seems from your query that the employee is appointed to purchase goods for the business with business funds. In other words, he is the buyer for the business and has been employed for this objective. Hence, it seems far-fetched that the employer will consent to the employee purchasing goods with personal funds and selling it to the business at a profit. By doing so, the employer is losing from all sides, as he is paying a salary to the employee for being the buyer, and furthermore he is purchasing goods from him at a higher price. It doesn’t make sense at all. The employee should therefore clarify the matter with the employer and if he explicitly consents to such transactions, then there is no harm in (the employee) doing so.

2. The employer cannot cut the salaries of his employees on the basis that the business is not doing well financially, particularly if the employees are present at duties for the full employment hours. Again, this seems far-fetched that an employer will cut the salary of just one employee because the business is not doing well, whilst the remaining employees receive their salaries in full. We assume that there is another side to these matters which is not being presented before us.

ALLAH TA’ALA KNOWS BEST!

ANSWERED BY:

Mufti Mohammed Desai

Date: 14 Rabi-ul-Awwal 1444 / 11 October 2022