Is it permissible for an employer to withhold half of an employee's monthly salary as a guarantee of their remaining with them for one year, with the confiscation of the withheld amount should the employee leave the job before the year is up?
The 'ijarah' (leasing/hiring) contract is a binding agreement. The worker is obligated to complete the work, and the employer is obligated to pay the full wage. It is not permissible for the employer to withhold the employee's salary. It is permissible to agree on taking half of the first month's wage as a pledge (security) to guarantee the worker's commitment. However, according to the resolution of the Fiqh Academy, the employer is not entitled to take more than the actual damage incurred due to the worker's breach of contract.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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