Wants to start a recruitment franchise business

10-8-2012 | IslamWeb

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.

---

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.