The World Federation One Stop Fiqh

Ruling 2229

A worker is considered to be non-liable (amīn). Therefore, in case the property perishes or becomes defective, he is not responsible (ḍāmin) unless he acts beyond the boundaries of the contract or is negligent in safeguarding the property. Similarly, he is not responsible if a loss is incurred; in fact, all losses are borne by the owner. If the owner wishes to stipulate a condition that any loss incurred is not to be borne only by him, then this condition can be expressed in three ways:

  1. he stipulates as part of the contract that the worker will be partner to any losses incurred just as he is partner to any profits made. In this case, the condition is invalid but the transaction is valid (ṣaḥīḥ);

  2. it is stipulated that all losses are to be borne by the worker. In this case, the condition is valid but all profits will also be his, and none of them will belong to the owner;

  3. it is stipulated that if there is a loss to the capital, the worker will recompense all or a specified portion of it from his own wealth and will give it to the owner. This condition is valid, and the worker is obliged to act according to it.