working in a company with core business halal but sometimes they take interest based loans
Question
A company sometimes takes loan from banks with interest. But its core business in halal like construction, clothes, furniture, wood etc. Is it permissible to work there–1. in finance or accounting department 2. any other department. Also, is it true that if 50% or more of their business is without haram and we aren’t directly involved in haram side we assume that we get our salary from the halal portion. What alternatives do i have as someone who has studied accounting and finance?
Jazakallah
Answer
Wa‘alaykum as-salām wa raḥmatullāhi wa barakātuhu,
Your question touches on several key aspects of Islamic finance and the corresponding rulings based on the nature of your work. I will address each point in detail:
- Two Distinct Issues:
- The nature of the work you perform: Whether the work itself is permissible.
- The source of your income: Whether the income derived from the work is Ḥalāl.
It is possible for the income to be permissible, but the work itself could be sinful if it involves assisting in haram activities. Both aspects must be considered.
- Working in the Finance or Accounting Department: Working directly in the finance or accounting department of a company that engages in interest-based transactions can be problematic. Any involvement in Ribā (interest) is impermissible. This includes roles that involve recording, managing, or facilitating interest-based loans.
Jābir (may Allāh be pleased with him) said: “The Messenger of Allah (ṣallAllāhu ‘alayhi wa sallam) cursed the one who consumes Ribā (interest) and the one who pays it, the one who writes it down, and the two who witness it, and he said: ‘They are all the same.'” (Ṣaḥīḥ Muslim, 1598).
Thus, if your employment involves calculating interest or assisting with such transactions, it is highly abominable (Makrūh Taḥrīmī) and one would be sinful for such work.
- Working in Other Departments: Working in departments that do not directly involve interest-based transactions, such as construction, clothing, furniture, wood, general auditing, preparing financial reports, submitting taxes, etc., is generally permissible. If your role does not require you to engage with interest-based activities, the work itself will be permissible and the income will be Ḥalāl.
- The 50% Rule: The “50% rule” is correct and applies separately to the work that one conducts. In principle, if the majority of the company’s income comes from impermissible sources, it is not permissible for you to receive any remuneration from them. However, if the majority of the company’s income comes from permissible sources, your salary is considered permissible.
- Alternatives for Someone with an Accounting and Finance Background: Given your background, you have several alternatives:
- Sharī‘ah Compliant Companies: Work for companies that operate in accordance with Sharī‘ah principles and do not engage in interest.
- Consultancy: Offer your expertise to businesses looking to ensure their financial practices are Shariah-compliant.
- Self-employment: Start your own accounting or financial consulting business, allowing you to manage your finances ethically.
- Non-Profit Organizations: Many non-profits, especially those aligning with Islamic values, require skilled finance and accounting professionals.
Conclusion: Working in an environment where you are not directly involved in Ḥarām activities is generally permissible. Due to the sensitive nature of interest-based transactions, especially in finance or accounting roles, it is advisable to seek employment where you can fully ensure compliance with Islamic principles. Consult with a knowledgeable scholar and provide detailed information about your job for personalized advice and an accurate ruling for your specific work.
And Allah subhanahu wa ta’ala knows best.