I have employed a few farmers on my agriculture land and entred into a contract with them that 90% of the produce would be mine and the rest would be shared with them. They agreed and worked. It means ninety rupees are mine and ten rupees would be distributed among them. They are living on my land without proper houses. I made a scheme for them that I have made houses for them and now receiving rent from them. Please note that in this way the 10% money which was distributed among them the approximately 5% of it again comes back to me. I am a good citizen and pay all the taxes and zakat to the government. My children are studying aboard. I live an honorable and respectful life in the society without any difficulty. I met with one of my old friend and told about my life. He argued with me that my earnings are not according to the teachings of Islam. I asked how and why it is against the Islamic teachings, he gave me following reasons.
1. Allah has created this land for the benefits of all human beings no one can claim its ownership. You can only own land for its administration or you should do labor (farming) with other farmers and take your share of labor from its produce. He argues that the farmers are laboring and getting only 10% wages and that is not according to their labor. He says that I enjoy 90% because I own the land. He claims that it is not moral and is against the teaching and the Sunnah of Prophets and Prophet’s Companions.
2. Shelter is the fundamental right of every human being and it is the responsibility of every Muslim to provide shelter to their brothers and sisters. You should give up the ownership of houses for your brothers. But you made a scheme so that you could take the part of their earnings which they earn by laboring into the fields. You cannot claim the ownership of these rented houses because you are not in need of them and these are over an above your needs. You will not find any example from the Sunnah of Prophets and their true Companions that they had given any commodity on rent or possess anything which is in excess of their needs. In this way your are doing the same things which Pharaoh had done by taking the ownership of the land which is in excess of your needs and requirement. You should also consider that you become a 95% owner of the rizq (provision) of that land. And socio-economic difference between you and your brothers (farmers) is so wide that they become your slaves, because you are the owner of this land. You should consider that the wealth and honor which you are enjoying is all from Allah or it is your intellect and wisdom by that way you are earning or accumulating wealth?
3. You should also know that rent income and interest income are two faces of one coin. Both incomes are unearned for you, means you do not work to earn that money. You have money that is why you have assets e.g. houses. You just convert the nature of money from for current asset to fixed asset. Cash is a liquid asset that can be converted into any commodity. Please consider the example of water, water is liquid and if water is prohibited for any reason for someone than how can ice be valid for him. So your all earning should have labor for it, because Ujrat is of human labor and not for his assets whether living or non living. That is a main reason that all Prophets and their true Companions earn by laboring and not just letting their assets on rent, why because rent is riba and riba is haram in Islam of Muhammad, Jesus, Moses, Abraham and Adam. Please guide whether what my friend said to me is correct? If it is correct than why unearned income and rent income is considered Halal?
Answer
It is very encouraging to see that a person in your conditions is so concerned about the permissibility of his business from religious point of view. May we have more business people like you.
There are two ways you can look at your business:
1. From Shariah point of view. Based on my understanding of your explanation of your business, I do not see any thing Haram you are doing. You have a clear cut contract with your labour and you are simply acting according to this contract. You do not force (I presume) any one to sign the contract with you and it is their choice whether to accept it or not. There is no problem here. As for the claim that rent and Riba are the same please read this article by Mr. Moiz Amjad:
2. From ethical and moral point of view the story will be different. A business arrangement might be legally Halal and permissible yet not quite inline with morals. Whether the conditions and the premises of the contract are moral or not is not for me to judge because I am not aware of all the details and backgrounds and have not seen it for myself. From the outset, it seems to me that perhaps it is fairer if you let the farmers stay in the houses prepared for them for free. You can consider this as a service that you (as employer) have to provide to your labour for free so that they can work within your terms and conditions (just as an organisation provides free car park for its employees). I am sure not receiving that 5% will not affect your life/business a lot but you would agree with me that saving that 5% (i.e. half of the payment) for the labours can mean a lot to them.
