Business and Dealings

Q:

1. Could you please explain the rulings regarding Banking with Islamic Banks (Absa Islamic, Albaraka, Etc). A friend of mine said to me it is all a scam and the Scholars involved are there to make a quick buck, and I should regard the profits as interest? Is this correct and what is your advice and explanation if possible, as i would like to take it up these banks for an explanation?
2. Similarly, what is the ruling regarding investing in Equities with scholars on their board (Albaraka Futregrowth, Oasis Cresent, Etc.?)

Q: Is credit insurance permissible i.e. to secure high risk debtors against payment default, there are companies such as Credit Guarantee that take a percentage of the invoice value of the particular debtor with the agreement that should the debtor default on its payment to the company, then Credit Guarantee would make good the payment to the company.

Q: Generally, in what avenues can interest money be spent? Is it also permissible to pay traffic fines with interest money?

Q: We do not charge interest on overdue accounts, but we find that because of this, both Muslim and non-Muslim companies take advantage and delay the payment of their accounts. Is it permissible to charge interest on their overdue accounts because of this? If it is permissible then what should be done with the interest money? If not, then what is the alternative?

Q: I'm in my 2nd year, studying accounting. I read the following hadith the other day: Allah's Messenger (sallallahu alaihi wasallam) cursed the recipient of usury (interest), and its giver, and one who records it, and the two witnesses; and he (sallallahu alaihi wasallam) said, "They are all equal (in sin and penalty)" as narrated by Hazrat Jaabir bin Abdullah (radhiyallahu anhu). I am now worried, as an accountant will record interest when doing accounts. What should I do?

Q: I cannot support my family for last 4 years because of health issues. I require a job that is relaxed indoors. Cannot go to school due to lack of funds. I have been offered a position as an insurance agent (they are paying for course) selling auto insurance which is mandatory in Toronto, Canada. I only provide a quote for coverage but not binding. The insurance company does the binding/transaction. Will this be a halal option for me?

Q: My question is that do we receive interests from conventional banks or is it dividend?  As far as i know, conventional banks use our money to invest and the profit received is shared among clients. Now, the money may have been invested in companies which we do not know if they are "halaal" or not.  But the question remains that is the money received is called dividend or interest?

Q: I work for the auditor general. The organization is responsible for the audits of all government departments, municipalities and government boards. The company requires me to be part of the audit of the KZN gambling board. Will I be sinful for participating in the audit?

Q: We operate a car wash, and from time to time, some damage is caused to the vehicles of customers. Obviously, the workers do not have sufficient money to pay for the damages they cause and we end up paying for them. Will it be permissible for us to take out a 3rd party policy for such cases since we are not at all responsible for these damages?

Q: I, as an employer would like to include the following conditions in my employment contract for my staff:

1. All staff are to be committed to work for one full year. The employment contract is a compulsory one year contract from the beginning of the year till the end of the year, 12 months.
2. With regards to termination of employment for the following year, the employee is obliged to give three months written notice before the end of the current year.
3. Should the need arise for any staff to be dismissed during the current year of employment due to any irregularities, this can be put into immediate effect.

I would appreciate you to expound on them being acceptable in Shariah, with proofs of Quran and Hadith.