The Majlis Archive

Finance - Banking - Business The Majlis Vol 23 No 06, p.3

Most businesses close from mid December and re-open in the new year.

Question

Most businesses close from mid December and re-open in the new year. The employee however gets paid a full salary for December. Although it is by mutual agreement between the employer and employee, what is the view on this from both a fatwa and taqwa perspective. Should the employee take a full salary despite having worked only a portion of the month. Would it be best for the employee to calculate the amount due to him on a pro-rata basis in terms of the amount of days he worked for that month. In addition thereto, what entitlement does the employee have to an annual year end bonus?

Answer

Full pay for December is part of the work contract, and so is holiday pay. This is the accepted norm unless specifically excluded from the contract. Hence, it is permissible. Taqwa is another dimension. If it appears that the employer pays the extra reluctantly – he pays only because the law requires him to pay for the full month, then it is best to accept pro rata. However, if the employer is happy and refuses to make any deduction, then even according to taqwa it will be valid to accept 'pay' for the full month. The worker has no right to claim a bonus. This is a pure gift and is left to the discretion of the employer. It is haraam to make a demand on any 'promised' bonus.

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The Majlis Vol 23 No 06
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