Charging the employee for early termination of employment

Q: I have an issue on which I need Islamic guidance. I was working in a company in Karachi whose head office is in another country. According to the company’s contract, if any employee leaves the job before completing two years, then he must pay the company two months’ salary. 

My intention was not to leave the company, but some individuals repeatedly placed accusations on me without any evidence or proof. They would write emails against me which created difficulties for me. Due to this mental stress and false accusations, I was forced to resign even though I did not want to. 

My question is: according to Shariah, is it obligatory on me to pay this amount? Because I did not leave the job by my own will or by deceiving the company, rather I was forced to resign due to their false allegations and inappropriate behavior.

A: This condition is an invalid condition. 

In an employment contract, it is incumbent upon both parties (the employer as well as the employee) to abide by the rules and regulations of the contract, provided it does not contradict any law of Shari’ah. If any condition or clause in the employment contract contravenes any law of Shari’ah, then fulfilling the condition will be impermissible, irrespective of whether it relates to the employer or the employee. 

The clause of "charging the employee two months' salary if he leaves the job before completing two years" is an invalid condition in Islam. Hence, it is impermissible for them to charge the employee this amount. If they charge him this penalty, they will be sinful and this will be regarded as riba (interest).

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

 

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)