Returning company files after termination of contract
Category:
Business Dealings & Money Matters
According to Madhhab:
Hanafi
Reference:
1440-291
Question:
1. An employee has an
open contract, i.e. no time limit for the contract is stipulated. The employee
is no more working for the employer, and this was mutually understood. Is there
a need to formally terminate the contract, like in writing?
2. A person was working for an organisation. He was skilled at designing (on
the computer) so he designed things for the organisation, for example, a
letterhead, logo, calendar, etc. All of this was not part of his contract. It
was done out of his goodwill, for the benefit of the organisation. And he was
not paid for this. Moreover, he used his personal computer for this. He is no
more working for the organisation. Does he need to hand over these files to the
organisation? Can he withhold the files, if asked to hand them over?
open contract, i.e. no time limit for the contract is stipulated. The employee
is no more working for the employer, and this was mutually understood. Is there
a need to formally terminate the contract, like in writing?
2. A person was working for an organisation. He was skilled at designing (on
the computer) so he designed things for the organisation, for example, a
letterhead, logo, calendar, etc. All of this was not part of his contract. It
was done out of his goodwill, for the benefit of the organisation. And he was
not paid for this. Moreover, he used his personal computer for this. He is no
more working for the organisation. Does he need to hand over these files to the
organisation? Can he withhold the files, if asked to hand them over?
Answer:
1. In the queried scenario, it is highly possible that things could be misinterpreted. One party could easily state that there isn’t any proof that he terminated employment at the company or state that he never indicated towards termination of employment and the matter has therefore been misunderstood. Hence, due to the employee not submitting a formal resignation some complications could arise.
We therefore advise that there should be a formal written resignation from the employee and a letter of acknowledgement from the side of the employer.
2. As for the items designed by him, there is no need to return them to the company and these designs can be used by him as templates for other similar work at a later stage. This is on the basis that copyright is not recognized in Shariah. However, letter heads with the details of the company should be returned to the company as he will not be able to use the company letterhead and details due to terminating his employment with the company.
And Allah Ta'aala knows best
ANSWERED BY: Mufti Mohammed Desai
CHECKED AND APPROVED BY: Mufti Muhammed Saeed Motara Saheb D.B
Date: 28 Jumadal Ula 1440 - English Date: 04 February 2019