AAOIFI Shariah Standards

Ju’alah: Appendix B - The Shariah Basis for the Standard

Permissibility of Ju'alah


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Ju’alah contract is permissible according to the majority of the Fuqaha on the basis of the Qur`an, the Sunnah, Ijma’ (consensus of Fuqaha) and Ijtihad (reasoning).

Shariah Status of Ju'alah

The basis for the principle that Ju’alah is not binding for the offeror is that accrual of the compensation is contingent upon a condition, thus, it resembles bequest, which is not binding. The basis for Ju’alah being non-binding for the worker is that the work to be done is uncertain, thus, it resembles Mudarabah, which is not binding.

« Appendix A - Brief History of the Preparation of the Standard Commercial Papers: Scope & Shariah Ruling »


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