Is it permissible to take a sum of money from an employee, as agreed upon in the contract concluded between the two parties, in the event of him suddenly leaving work or not completing the period agreed upon in the contract?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
What is known as a penalty clause (or liquidated damages clause) varies in ruling depending on its condition. It is permissible to stipulate it in contracts where the obligation is not a debt, as in the case mentioned in the question. However, in contracts where the original obligation is a debt, it is not permissible.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/103611
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- Ftawy
- Original fatwa ID
- 103611
- 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.
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- Read the full answer on Ftawy