What is the verdict of the Learned Scholars of the Sacred Shariah regarding the following issue; in our country there is a Union which handles the affairs of the employees, if anyone wants to become its member then they have to contribute a monthly fee, the benefit will be this that if its member becomes jobless, then this union will give the person 80% of the person’s income until the person gets a job. Is it permissible to become a member?
Questioner: Ali from Sweden
بسم اللہ الرحمن الرحیم
الجواب بعون الملک الوھاب اللھم ھدایۃ الحق والصواب
If the union is Muslim-owned, or Muslims have a share in it or any one of its owners are Muslim then to make such a dealing with such a union is interest and Harām. This is because the contributions from the members which will be accumulated in the union will be a loan according to Sharī’ah, and in this way receiving 80% of one’s income on losing one’s job will be a benefit conditioned on the loan. A benefit conditioned upon a loan is interest, it is Harām and whoever did such an act so repentance becomes necessary upon him.
Just as it related in a Hadīth Sharīf,
“كُلُّ قَرْضٍ جَرَّ مَنْفَعَةً فَهُوَ رِبًا”
“Every loan that draws benefit is interest.”
[al-Jām’i al-Saghīr li al-Suyūtī, vol 2, pg 283, Hadīth no 4334]
If the union belongs to Harbī Kuffār [non-Muslims that are not residing under an Islamic government], then to make such a transaction with them which is prohibited between Muslims without an intention of taking interest money is not impermissible. But the condition is this that a Muslim should not be at loss, but benefit through such a transaction. However in the scenario described here, there is also a possibility of loss as one’s first employment may not terminate during one’s entire lifetime, and having not sat a single day unemployed at home, the monthly amount given to the union will have been squandered, gone to waste and there will be loss for a Muslim. For this reason it is best in every way to refrain from such membership.
To take the wealth of a Harbī Kāfir via an ‘Aqd Fāsid [a flawed transaction] with the condition that it is beneficial for a Muslim is permissible.
Just as it is stated in Bahār-e-Sharī’at that it is not prohibited to gain a Harbī Kāfir’s wealth through ‘Aqd-e-Fāsid i.e. that business transaction which is prohibited between two Muslims. If it is done with a Harbī Kāfir then it is not prohibited but the condition is this that it should be beneficial for a Muslim.
[Bahār-e-Sharī’at, vol 2, part 11, pg 775]
واللہ تعالی اعلم ورسولہ اعلم صلی اللہ علیہ وآلہ وسلم
کتبہ ابو الحسن محمد قاسم ضیاء قادری
Answered by Mufti Qasim Zia al-Qadri
Translated by Mohamed Raza Qadri
Read the original Urdu answer here – [Q-ID0317] Can I become a member of a work Union which will pay me if I lose my job?
Also see –
[Q-ID0262] I want to loan money to someone, but want some benefit from it, what can I do?
[Q-ID0261] How can any extra money be taken for a Loan without taking interest?
[Q-ID0260] Is it permissible to take out a mortgage in England?
[Q-ID0228] What is the Islamic ruling on taking out a Life Insurance policy in the UK?
