SS 34 – Hiring of Persons

This Standard aims to indicate the Shari’ah rulings on hiring of persons in its two distinct forms which include: hiring in the sense of obtaining the services of a private employee ( services of a private employee (Ajir Khas Ajir Khas), as well as hiring in the sense of ), as well as hiring in the sense of obtaining the services of a shared employee ( obtaining the services of a shared employee (Ajir Mushtarak Ajir Mushtarak). The service ). The service could also be either a defined task, or a future service which needs to be specified through detailed terms of reference. The standard also covers the relevant controls that Islamic financial institutions (Institution/Institutions)

should observe when the institution is the employee and when it is the employer.

The word (Institution/Institutions) is used here to refer, in short, to Islamic financial institutions including Islamic Banks.

Scope of the Standard

This standard covers hiring of the service/work of persons between the institution and other institutions or individuals. The standard covers the cases when the institution is the employee and when it is the employer. However, the standard does not cover other contracts such as Mudarabah, investment agency, Musaqat, Muzara’ah, Mugharasah, and Istisna’a. 2. Definition of the Term “Hiring of Persons” It refers to the contract through which a service/work of a natural or a legal person is obtained against a specific amount of pay. The service thus ob- tained could be specific or a future one that needs to be specified through detailed terms of reference, such as educational, health and consultancy services. 3. Pledge to Hire a Service