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Is the money I received as compensation for my unlawful dismissal from work considered halal or haram?

1 min readAlso available in العربية

The reference for the ruling on compensation reverts to the contract between you and the company. If the contract does not stipulate compensation, but labor law does, or custom dictates it, then custom is a valid arbitrator. If neither the contract, nor the law, nor custom stipulates this compensation, then there is no legitimate basis for its entitlement, unless the termination of the contract was unlawful. The unilateral termination of a rental contract with an excuse is a matter of scholarly disagreement and requires judicial resolution. However, terminating it without an excuse is impermissible, and the contract period must be completed, and the employee is entitled to their full wage throughout the period as long as they are making themselves available for work.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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