Adding a clause in a contract that if a person does not complete the work by a certain time then he will be fined and will not receive a salary
Q: I did a job in a company that gave me a project for a week with a guideline that if I complete this project within 7 days, they will pay my salary otherwise I'll have to pay some charges if I am not able to complete my task. Is this okay?
A: This type of contract is impermissible in shariah. In an ijaarah contract (employment contract) the salary of the employee is stipulated by either time or work. If it is stipulated by time, then upon the completion of the time the employee is worthy of receiving his wage. If it is stipulated by work, then upon the completion of the work he is worthy of receiving his wage. In the case where he is unable to complete the work, he should be paid in proportion to the work that he had carried out. Adding this clause in the contract that if he does not complete the work by a certain time then he will be fined and will not receive a salary, is an invalid clause in shariah and amounts to extortion and oppression.
And Allah Ta'ala (الله تعالى) knows best.
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