Many corporate
companies use the services of a recruitment company to find staff. The
corporate company provides the specifications of the vacancy to the recruitment
company. The recruitment company then suggests candidates that it knows. If it
does not have a candidate that matches the specifications it advertises the
position to get candidates. If the corporate company is happy with the
candidate provided it pays the recruitment company. As payment for this
service, the recruitment company is normally paid a percentage (eg. 10%) of the
yearly salary of the person who is then employed by the corporate company. Is
this permissible? Also, if the salary that the candidate will be paid is not
known upfront, will it be permissible?

Answer: 

Our understanding of the enquired scenario is that a corporate company hires a recruit company, who suggests suitable candidates for the job. Once the candidate has been hired as an employee by the corporate company, the recruitment company is given its payment for the rendered service. A fixed percentage (for example 10%) of the hired employee’s yearly salary is given to the recruitment company as a once-off payment for this service. If this is the method, then it will be permissible as this will be regarded as a payment of a commission agent. (Shaami Vol. 6 Pg. 47). Also, if the salary of the candidate/employee in unknown upfront, however, the percentage that the recruitment company will receive is fixed, it will also be permissible. (Islam aur jadeed ma'aashi masaa'il Vol. 4 Pg. 123) 

AND ALLAH TA'AALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST

ANSWERED BY: Zaid Mahammad

CHECKED AND APPROVED BY:  Mufti Muhammed Saeed Motara Saheb D.B. 

Islamic Date:7 Rabi'ul Awwal 1440 - English Date: 15 November 2018