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The question

Is it considered unjust not to give a share of the profits to a partner after he has been excluded from the management of the factory—which was established and financed by the investor—especially given his argument that industrial projects take time to generate profits?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

It is permissible to combine a percentage and a fixed wage for an employee, although the more cautious approach is to have only a fixed wage. However, if the employee is a mudarib partner (one who invests labor in a profit-sharing venture), he is not entitled to a monthly salary, but only to the agreed-upon percentage of the profits. An employee may be dismissed if there is no agreement on a specific term of employment, provided he is given what is due to him from the salary and percentage. However, if there is an agreement on a specific term, it is not permissible to terminate it except upon its expiration, based on the saying of the Prophet (peace be upon him): "Muslims are bound by their conditions."

Furthermore, contracts are permissible contracts that either party has the right to terminate. However, if the termination results in harm to the other party, compensation must be provided. An example of this is when the project's profits do not materialize until after a certain period, and the contract is terminated before that time; in such a case, compensation for the expected profit is obligatory.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
17500
Imported
Translation status
Source text, unreviewed
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