Question Summary:
Can a salary/wage be structured in a way that its based upon a few conditions and not just a basic salary?

Question Detail:

I have a question regarding salary structures and if the following method will be accepted according to the islamic priciples. Can a salary/wage be structured in a way that its based upon a few conditions and not just a basic salary?

It is divided into 4 sectors that carry out the month end wage
for example :
1. R1000 as a basic salary

bonuses/gift/incentive from the company if the following is cariied out in good order will be paid at the companies discretion :
2. R1000 for punctuality if you at work at 8 am daily (not a min) after
3. R1000 for 100 % attendance
4. R1000 for behavior (no arguements at work)

If any of the above conditions (time/attendance/behavior) are not fulfilled or there is no improvement from the staff with regards to latecomming then the basic will be reduced by R500 monthly until they improve or show commitment at the end of the month the employee could leave with R4000 or less , depending on the companies discretion and the employees attitude .

If there are staff who persist on latecoming by 15 to 30mins daily can the R1000 for punctuality be deducted completely? is this method correct?
 

Answer :

Assalāmu `alaikum Warahmatullāhi Wabrakatuh,
The structure has two components.
A) Salary
b) Gift
The first component is an obligation and has a legal right. When an employee provides a service, the employee is obliged to pay him the agreed salary. The employee has a legal right and claim to his salary.^[1]
The second component is a gift. A gift is voluntary gesture and has no legal right. If the donor offers the gift, it is his kindness. If he does not offer a gift, there is no claim against him.The structure in reference is a combination of an obligation and a voluntary act. ^[2]
If the basic salary is R1000, the employee is entitled to the R1000 at the end of the month. The employer has to pay the employee.If the employer refuses to pay; the employee has a legal claim against the employer.
Points 2, 3, and 4 of the structure are gifts based on performance, punctuality, attendance and behavior. The employer is morally bound to reward the employee. He is however not legally required to do so as it is a gift. ^[3]
The structure may be implemented.However; the employer as well as the employee should know the implications of the first and second component to avoid any misunderstandings and disputes. If it is possible the employee may regard points 2, 3, and 4 as a salary structure which is suspended on his performance. This may lead to him claiming a right at the end of the month if he fulfills the requirements mentioned in 2, 3, and4.
The deduction of the salary for late coming should be calculated according to time. For example if o ne is earning R10 000 for 20 days a month Monday to Friday at 8 hours per day. He is thus earning R500 day at a rate of R62.50 an hour. His salary should be deducted accordingly.
And Allah Ta'ala Knows Best,
Muftī Ebrahim Desai
Daruliftaa
35 Candella Rd, Durban, South Africa
www.daruliftaa.net