Q: I work for the local council through an employment agency (A) who put me forward as a candidate to the local council. I submit my weekly time sheets to the employment agency (A) who submit it to my manager at the council for approval. Once approved, the time sheets are sent through to employment agency (A’s) umbrella company (B) who pay my wages weekly. On a separate note, I submit my weekly travel and food expenses to umbrella company (B) who reimburse me. I assume the set up is that the council pay both the umbrella company (B) and the employment agency (A) a lump sum from which they deduct their fee and then umbrella company (B) pay the remainder as my wages. Now someone has told me that the the fee that (A) & (B) deduct is riba and therefore my wages too are Haraam? So the question is: are my wages Haraam?
A: We do not see how the element of riba (usury/interest) features in this.
Hence, if your work is of a permissible nature then your wage is permissible.
And Allah Ta’ala Knows Best
Aadiel Moosagie (Mufti)
[email protected]
www.councilofulama.co.za