Is it permissible, Islamically, to demand the return of a full financial grant along with a penalty, based on an employment contract whose agreed-upon duration was not completed due to unforeseen circumstances?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
A fixed-term contract must be fulfilled because it is a binding contract. If the employee does not complete the term without a valid excuse, some scholars are of the view that he is not entitled to any compensation for the work he has done, similar to someone who was hired to carry a book but refused before delivering it, or to dig a piece of land but refused before completing the digging. Based on this, the company has the right to demand that you return the amount. As for the fine, it is a penalty clause.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/140595
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 140595
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy