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Violating work contract by taking another job

Question

Dear Shaykh. I got a new job with a company. Previously, I was working in a wholesale shop. After having joined this company, I still work part time at that shop. However, in my employment contract with this company, it is stated that I am not allowed to do any part-time job, any business, or any other thing which provides any financial gain. I promised my previous employer that I will continue to work for them until they find a new person for the job. Since then, however, I have grown comfortable with doing two jobs, and they are satisfied with me and have stopped looking for a replacement. Please, also note that I did not receive an employment contract at the time of joining the company, but only one month later. My question is: according to the Sharia, can someone restrict your earnings via a contract? Am I sinning by doing that second job? Also, I have plans to start my own business while doing my day job, is it permissible for me to do so? Please also note that this company is paying me only 15,000 PKR (around 150 USD) per month, and I earn 10,000 PKR (around 100 USD) from my second job, if I leave that second job, I will encounter financial problems. Please guide me on this issue. May Allaah reward you with good.

Answer

All perfect praise be to Allah, The Lord of the worlds. I testify that there is none worthy of worship except Allah and that Muhammad, sallallahu ‘alayhi wa sallam, is His slave and Messenger.

The basic principle is that it is an obligation to abide by the terms of the contract. Allah, The Exalted, says (what means): {O you who have believed, fulfill (all) contracts.} [Quran 5:1]

As for conditions such as the one in your employment contract, they are problematic and require examination, especially given that there is an extensively wide range of contemporary contracts of diverse natures and terms. On the other hand, there is the issue of coercion, which makes the employee sign a contract without being fully satisfied with its terms. Therefore, the scholars held different views on such terms and the obligation to abide by them. It can thus be said that there is very likely no harm for the employee to violate the condition that he must not work on any other job outside the working hours provided that his other job does not affect the job that is subject to the contract, especially if he needs the other job.

Allah knows best.

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