Can One Work as the Manager of a Car Finance Company? Which Jobs are Halal and Haram in the West?

Fatwa ID: 03989

Answered by: Maulana Mujahid Hussain 

 

Question

I live in a non-Muslim country and am working as the manager of a vehicle finance company. Does Islam give permission to work in such type of company?

 

بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم

In the name of Allah, the Most Gracious, the Most Merciful

 

Answer:

The issue with such a job is the HP and PCP agreements. In most cases, the person wanting to finance the car borrows the money from the bank and has to pay it back with interest and it’s your job as a vehicle finance manager to arrange such a transaction. This Transaction is based upon Ribaa and is not allowed.

It is my understanding that Audi, BMW, and Mercedes offer HP and PCP agreements without the involvement of a loan, rather, the price of the car is simply divided into monthly instalments. Of course, paying for a car monthly costs more than a single full payment but both transactions are Halal. This would mean that the HP and PCP agreements offered by these three companies are Halal. That would mean working for these three companies is Halal, provided my understanding and knowledge is correct.

 

Which types of jobs are Halal in the West and which are Haram?

 

  • 1. Any jobs that result in you carrying out, encouraging, or protecting haram are not allowed. If this Haram act happens to be amongst the major sins, then the matter becomes more serious. 

 

Examples of doing Haram include working as a prostitute, owning a gambling company, or one that produces alcohol or any company producing Haram material such as pornography. Also, a job that results in you being evolved in bribes and corruption.

Examples of encouraging Haram include the advertisement for any haram items such as promoting alcohol or a gambling company, working in the financial sector which results in you to encourage interest (Riba) or any job in which you have to encourage customers to do haram acts or buy haram items.

Examples of protecting Haram include a security job for a pub, club, or providing legal or digital protection for any haram company.

 

  • 2. Working for a company, business, or a retailer where the main or most actions are haram even though you may not be carrying out,  encouraging, or protecting Haram.

Examples of this include, working as a cashier for a bank[1] or an accountant for a pork company. Here even though you do not engage in riba, eat pork, nor do you encourage riba or the eating of pork, you are nevertheless adding and promoting sins in a general sense, as well as labeling yourself with a Haram. 

 

Allah (s.w.t) says:

وَتَعَاوَنُوا عَلَى الْبِرِّ وَالتَّقْوَىٰ ۖ وَلَا تَعَاوَنُوا عَلَى الْإِثْمِ وَالْعُدْوَانِ ۚ وَاتَّقُوا اللَّهَ ۖ إِنَّ اللَّهَ شَدِيدُ الْعِقَابِ – 5:2 

“And cooperate in righteousness and piety, but do not cooperate in sin and aggression. And fear Allah; indeed, Allah is severe in punishment”.

 

  • 3. Jobs where you are not doing the above two (i.e. carrying out,  encouraging, or protecting Haram and you are not working for a company, business, or a retailer where the main or most actions are haram but are handling haram items, are Halal.

Examples include working at Asda, Tesco, or most major retails and working as a postman. Here you may have to handle Haram items at such places or as a postman you know some of the letters you are delivering will contain Haram. However, most of your work deals with Halal items. Plus you are not carrying out, encouraging, or protecting Haram acts or items. So, this job is ok.

 

  • 4. Jobs in which there is no connection to Haram are of course Halal.

Examples including working for electric, gas, and water company. Likewise, working at a Halal food place or working in a furniture place.

 

  • 5. The best types of jobs are ones that have no connection to Haram and enable one to pray Salah in the Masjid with the congregation.

Examples include working as a freelance carpenter, electrician, driving instructor, and providing any service where you dictate timings to clients such as a tuition teacher.

 

 

Only Allah knows best

Written by Maulana Mujahid Hussain

Checked and approved by Mufti Mohammed Tosir Miah 

Darul Ifta Birmingham

 

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