Business and Dealings

Penalty on Early Termination of Employment

Submitted by admin on Sat, 2012-02-25 17:08

Q: An employer enters into a one year contract of employment with a senior level employee with a specific and unambiguous clause that says:

TERMINATION OF EMPLOYMENT

Three calendar months notice period will apply if your employment is terminated at any stage. Should the notice period be shorter than 3 calendar months, then the defaulting party must pay the balance of the salary equating to the remainder of the notice period not served (eg: should the employee request to leave with a 1 month notice period, then the employee must pay the employer the salary amount for the balance of the 2 months).      

Penalty on late payment of school fees

Submitted by user on Sat, 2012-02-18 15:45

Q: My child attends an Islamic school. We received a note saying that if school fees are not paid by a certain date then an additional amount will be charged daily and the account will be handed over. Is this money that they will charge daily after the cut-off date permissible?

Stipulating the profits in proportion to the investment

Submitted by admin on Mon, 2012-02-13 17:02

Q: I would be grateful if you can guide me through my problem. I am currently staying in the UAE  (United Arab Emirates) and supporting my family (Parents, wife and two kids) who are also staying with me in the UAE as they cannot go back to Pakistan. My father is unemployed. My problem is that I have a limited income and everything is very expensive in the UAE. The house rents are also very high. In this situation I have got an offer from a businessman, that if I invest with him in the business he will give me 10% share of my investment every month. Understanding that his business is already well established and there are apparently no possible chances for any loss, please advise if this is halaal for me?

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