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1. Trade
Definition: the act of receiving something in exchange for a possession or an item and handing over its ownership to another person.
- Agricultural and industrial products reach people through trade.
- The trader is the link between the producer and the consumer.
- So Islam has permitted trade and has praised the trader's service.
Hadith (Tirmidhi) – meaning: "The trustworthy, honest traders will be (in the Hereafter) with the prophets and the martyrs (shuhada')."
Why is trade complicated?
- Some people are confused and cannot tell trade apart from interest.
- Others do not know the conditions for it to be halal and think only of making a profit.
- So Islamic legal scholars have explained the laws of trade on the basis of the Quran and the Sunnah; it is a duty for a Muslim trader to know them and act on them.
'Umar's (RA) warning
No one should trade in our market except those who understand the laws of trade; otherwise, willingly or not, they may end up consuming interest. (meaning)
2. The three pillars of trade and their conditions
Pillar 1: The buyer and the seller
- Must be mature (past puberty)
- Must be of sound mind
- Must know the details of the transaction
Pillar 2: The item being traded
- Must belong to the seller
- Must be able to be handed over to the buyer
- Must be in stock (in hand)
- Must be clean (pure) and useful according to the Islamic Shari'ah
Pillar 3: Ijab and qabul (إيجاب – قبول) – offer and acceptance
| Term | Meaning |
|---|---|
| Ijab | The seller stating that he has sold the item |
| Qabul | The buyer stating that he has accepted it |
- This may take place verbally, in writing, or by other methods in common use.
Memory tip: Persons – item – agreement (buyer/seller – item – ijab/qabul).
3. What is forbidden in trade (8)
- Unnecessary oaths
- Cheating in measure and weight
- Hoarding
- Unfair pricing
- Adulteration
- Lying
- Deception
- Breaking the general laws
4. Benefits of keeping to Islamic principles (5)
- Buying and selling becomes worship.
- Good relations are kept between buyers and sellers.
- The business becomes stable.
- Protection from false accusations.
- Freedom from haram dealings.
5. Service occupations
Service occupation: providing a service to someone and receiving the proper wage for it.
- A service worker's capital is his knowledge, skill, time and effort.
- Providing services according to one's knowledge and skill and earning an income from it is a practice Islam permits.
The two kinds of service occupation
| Kind | Examples |
|---|---|
| a) Professional (knowledge-based) | Teaching, nursing, clerical work, qadi (judge) |
| b) Manual (physical labour) | Minor staff work, office support work, security (guard) work |
Islam does not measure status by occupation
- Some jobs may bring more social status and pay; but Islam does not measure a person's status by the work he does.
- Hadith – meaning: "For one of you to take his rope, gather firewood, carry it on his back and sell it is better than begging from people."
Work that suits one's ability
- Every person has special abilities from Allah; it is best to recognise them and do work that suits them.
- Islam does not allow taking up unsuitable work for the sake of status or pay.
The incident of Abu Dharr al-Ghifari (RA) (Muslim)
- "O Messenger of Allah! Will you not appoint me to a position?"
- The Prophet ﷺ patted his shoulder: "Abu Dharr! You are weak, and a position is a trust (amanah). On the Day of Judgement it will be regret and sorrow, except for one who takes it rightfully and fulfils its duties properly." (meaning)
Three kinds of judges (Tirmidhi)
| Kind | Place |
|---|---|
| One who understood the truth and judged by it | Paradise |
| One who understood the truth and judged against it | Hell |
| One who judged without knowledge | Hell |
Those who do not seek work suited to the different abilities Allah gave them misuse Allah's blessing.
6. The rights and duties of a service worker
Rights
- A service occupation is in exchange for a wage.
- Service workers must be treated with respect; their services must not be wasted, their rights must be protected, and they must be paid the right wage at the right time.
- Hadith – meaning: "Give the worker his wage before his sweat dries."
- Their contribution to a country's economic development is huge.
Duties
- The chief duty is to provide the service in line with the wage received and the agreements made.
- (4:58) – meaning: Allah commands that when you judge between people you judge with justice (without bias). → Those who provide the service of justice must do it properly.
- One who expects more pay but gives less service earns only Allah's curse.
- If every service worker regards his work as a trust (amanah) and acts with trustworthiness and honesty, it becomes worship.
Quick revision
- Trade = handing over ownership in exchange for something; the trader = the link between producer and consumer.
- The honest trader is with the prophets and martyrs (Tirmidhi).
- 'Umar (RA): those without knowledge of its laws must not trade in the market.
- 3 pillars: buyer/seller (mature, sane, informed), item (owned, deliverable, in stock, clean and useful), ijab–qabul.
- 8 forbidden things: unnecessary oaths, false measures, hoarding, unfair prices, adulteration, lies, deception, breaking the law.
- Service occupations, 2 kinds: professional and manual.
- "A position is a trust" – Abu Dharr (Muslim); 3 kinds of judges (Tirmidhi); wage before the sweat dries; 4:58.