Hiring and Renting

Employees starting their own company

Q: My friends and I are planning to register a company which focuses on construction solutions. Presently, we are working in a company as employees and all of us are working in different sectors. Our employer has several businesses, and healthcare is one of them. For each machine installation, they hire a third party for construction and finishing works. My question is that we are the employees of the same company and now we want to open our own company to be the third party for their construction work. Can we take orders for construction jobs from our company without showing them that we own the third company? Will this be permissible?

Hiring a non-Muslim artisan instead of a Muslim

Q: There are two artisans I can deal with, one non-Muslim and another Muslim, the non-Muslim goes out of his way to give us excellent service, with good prices etc. the Muslim unfortunately does not offer excellent service we have chosen the non-Muslim but the thought crosses our mind that is it the correct thing to do. I mean ignoring Muslims and giving business to non-Muslims rather. I also give Dawat to him sometimes on the phone or maybe with paying on time etc. What is the respected Mufti Sahebs advice in this regard?

Rental based on percentage of turnover

Q: Is it permissible for the lessor to charge the lessee a rental based on his turnover in the case where they fix a ceiling for the maximum rental and they are both pleased with this type of agreement? Some people say that it is permissible, even though the rental is not fixed. They compare this to the case where one hires a rep to sell one’s merchandise and pays him a commission based on the sales he does. Just as his wage is not fixed, but is determined through his total sales, similarly determining the rental of a leased property through the turnover should be permissible. Is this view correct?

Fixing a ceiling in turnover clause rental agreement

Q: I read the fatwa regarding rental based on percentage of turnover being impermissible. I would like to query further that in the case where the landlord fixes a maximum amount for the rental, so that in the event of the turnover being a very large amount, the rental will not surpass the ceiling that has been fixed for the rental, will the ruling change in anyway? Most commercial properties work in this way and many tenants request this type of an agreement and are pleased with it.

Installing an ATM machine on one’s premises

Q: Your answer on installing an ATM refers : "since it is possible for one to withdraw interest bearing loans through this medium, it will not be permissible to install an ATM on one’s premises as one will be aiding in the sin of riba (interest)."

Question: 1) Will it not fall in the category of having a dual purpose as it is possible to withdraw halaal savings also. The property owner cannot be responsible for someone that uses the ATM for a wrong purpose similar to the sale of grapes?

2) If the illat is "the possibility of withdrawing interest bearing loans" then till point credit card machines should also be impermissible as a person whose account is already in overdraft is in fact paying by using "interest bearing loans " irrespective of using the budget or straight option of payment.

Lease agreements

Q: Please advise on lease agreements:

1. Is it necessary for a formal lease agreement contract to be in conformity with the Shariah? I understand that any faasid, baatil, or haraam conditions made compulsory by the Government will be excused.

2. Also, is it possible that on account of a lease agreement with faasid, baatil, or haraam conditions, the rent the lessor receives will be haraam money?