Is the severance package awarded by the judge to the dismissed employee considered a fine?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Whoever judges the gratuity (compensation for contract termination) with any ruling can explain their reasoning, whether it is a discretionary punishment and fine, or if it is due to the worker.
If it is compensation for moral damage, the preponderant opinion is that it is forbidden and impermissible to take it.
However, if it is due to the worker as part of his salary or as a penalty clause — which is the preponderant opinion — then there is no harm in taking it, and it is due to the worker.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/99718
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 99718
- 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