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The question

What is the ruling on compensating employees for delayed salaries at a rate of 1% for each day of delay, and what is the optimal way to dispose of it?

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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 not permissible to stipulate an increase on a fixed financial right owed in exchange for delayed payment, because it is a form of usury, as stated by the Fiqh academies. What the creditor pays to the lawyer to protect his money cannot be imposed on the debtor, as that falls under the usury of Jahiliyyah, which is an increase in exchange for delay, and this is a void and invalid condition.

Summarized from the full answer at Ftawy · imported

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Source platform
Ftawy
Original fatwa ID
168791
Imported
Translation status
Source text, unreviewed
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