Question Summary:
Employment Agency

Question Detail:

I have a 2 part question first I will explain where I am coming from. I have heard in the past that running an employment agency is haram because for example: the agency appoints person A to carry out work for person B, at the end of that week person A had carried out 40 hours of work for which then person B will pay a rate of 10 pounds per hour worked by person A to the employment agency for which in return the agency will then pay person A a rate of 7pounds per hour pocketing the remainder. My understanding of this is was that the pocketing of the remainder would be classed as interest (RIBA) however I wasn't 100% certain so my question is A. Is it permissible to run an employment agency? B. Is it permissible to work through an employment agency?

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
In order for us to issue a ruling, clarify the relationship between the agency and B. Explain the details of the contract between them and also between A and the agency.
And Allah Ta’āla Knows Best
Arshad Ali
Student Darul Iftaa
Trinidad
Checked and Approved by,
Mufti Ebrahim Desai.
http://www.daruliftaa.net/