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Does the working partner have the right to claim wages for work and marketing in a company based on a verbal agreement, equal capital, and an even split of profits and losses, after the emergence of almost unrecoverable debts that led to a dispute between the two partners?

1 min readAlso available in العربية

The aforementioned company is permissible and combines elements of both partnership (sharika) and Mudaraba (profit-sharing). Profits in such a company are distributed based on capital contribution, with an agreed-upon increase for the working partner in exchange for their labor. It is not permissible for the working partner to receive a salary in addition to a percentage of the profit, according to the preponderant opinion. If there is no agreement on profit distribution, then each partner receives profit commensurate with their capital if there is profit, and the working partner receives a wage equivalent to what is customary for such work.

Regarding bad debts, the Mudarib (working partner) is not liable unless there is transgression or negligence.

By virtue of an absolute Mudaraba contract, the Mudarib is authorized to perform acts customary among merchants, such as mortgaging, leasing, and purchasing. They are also authorized to perform acts that could conceivably be associated with the venture if they are told "act according to your judgment," such as investing the money in another Mudaraba or partnership, or mixing the Mudaraba capital with their own funds. However, the Mudarib is not authorized to incur debt, issue promissory notes (safatij), emancipate, enter into a contract of manumission (kitaba), grant gifts, or give charity, unless explicitly stated in the agreement.

Disputes may only be resolved through the judgment of a Sharia judge or through Sharia arbitration.

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

Read the full answer on Ftawy