Is it permissible to double the amount of money an employee uses for their personal needs from the company's trust without permission, and then to give it away as charity by way of punishment?
It is not permissible for an employee to use entrusted money for personal purposes, as this constitutes a breach of trust. The company owner is not allowed to punish the employee with a financial fine, because punitive financial penalties (ta'zeer bil-mal) are the prerogative of judges. Therefore, he must find another way to deter them, and taking money from them and then donating it does not absolve him of sin. Ibn Hazm said: "No one's money becomes lawful without a definitive text or a firm consensus, and it is not permissible for anyone to impose a fine that neither the Qur'an nor the Messenger of Allah, peace and blessings be upon him, has imposed." In the fatwas of the Permanent Committee, it states: "This action is impermissible because it is a punitive financial penalty imposed by someone who does not have the legal right to do so; rather, this matter rests with the judges."
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
Read the full answer on Ftawyhttps://ftawy.com/en/questions/20487