Employee not fulfilling conditions of a contract

Q: A certain person who works at a school decided to leave with a two week notice. The contract states that a three month’s notice period must be given, which is not correct according to the labour law. The labour law states that one month’s notice must be given. However, the board has decided that if the notice period is not served, the employee must pay them three months salary. The current month will not be paid and the employee must pay them for the other two months. Is this condition correct in the light of Shari’ah?

A: The employee should fulfil the condition of the contract. If he did not fulfil the condition (of giving three months notice) and left after two weeks notice, he will only receive a salary for the period he worked. However, despite him not fulfilling the condition, it is not permissible for the school to charge him any amount of money for not fulfilling the condition. If they charge him, the amount charged will be haraam and will be regarded as riba.

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

 

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)