Question

Wants to start a recruitment franchise business

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Question

Assalamulaeyikum wr wbr. I have a question related to business. I am planning to take the franchise business of recruitement. - My team will get the recruitment requirement from franchisor, & we will source resume, shortlist candidate, schedule interview & get them join. Once employee join then after 90 days we will get our placement fee out of which we will give 20% to franchisor. Jobs that we will be recruiting are for banking, finance, Insurance, Manufacturing, Technology, HR etc. Need your advice whether this business will be halal & it's earning will be halal.

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Accepted Answer

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.

In principle, it is permissible to work as a mediator between employers and applicants and this is a kind of brokerage which is permissible on the condition that this is in what is Islamically permissible. So, it is not permissible to recruit employees in banks that deal with Riba (interest and/or usury) and in commercial insurance companies.

As regards the money that is given to the authority that gives the franchise in return for the services that it provides in order to complete the requirements of recruitment as you mentioned in the question, then this is permissible if the mentioned commission is a known amount. However, if it is a percentage of what will be earned, then it is an unknown amount and this is not permissible according to the view of the majority of the scholars .

Allaah Knows best.

Fatwa

Wants to start a recruitment franchise business

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Related Fatwa

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Ruling on a technician or business owner working with banks, temples, hotels, etc.

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Benefitting from income earned from a job that involves selling both permissible and forbidden items, such as pork

Ruling on using former employer's contract template in business

Working in a Company which Markets Machinery with Dual Use in Halal and Haram Activities

Ruling on ill-gotten money due to cheating

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