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The question

Is it permissible for one of two partners in a business venture to receive a salary for managing the project, in addition to splitting the profits equally?

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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 for a partner to undertake the management of a project or another task, such as accounting, under a separate contract for a wage. However, it is not permissible for this to be part of the partnership contract, as it could lead to guaranteeing his capital and exempting him from bearing losses. It is stated in "Shariah Standards" that it is not permissible to allocate a specific wage in the partnership contract for a partner who is employed in management, but it is permissible to increase his share of the profits beyond his capital contribution. It is permissible to assign one of the partners the aforementioned tasks under a separate contract, such that he can be dismissed without amending or dissolving the partnership contract. In this case, it is permissible to allocate a specific wage for him, because he is not acting in his capacity as a partner but as a special employee. Dr. Abdullah bin Ibrahim Al-Nasser holds the view that combining the roles of an employee and a partner is permissible শরীয়াহ-wise, and that necessity dictates this independence between the roles of the partner and the manager.

Summarized from the full answer at Ftawy · imported

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Source platform
Ftawy
Original fatwa ID
17749
Imported
Translation status
Source text, unreviewed
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