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Fulfilling employer's condition not to do private work outside working hours

Question

Assalaamu alyakum. My uncle is an architect; he draws houses. His company told him that if he wants to work for them, he has to sign a contract that says that he cannot do private work on the side, like on weekends (as they want all work in the area to come to them so they get more money). My uncle signed it, but he does not follow it; he has started a small company in which he does design work for Muslims and other people for cheap on the weekends and when he has free time. He does this to help people out and to earn more money. This does not affect his work or performance for the main company which he works for. Now, my issue is the following: he wants me to work for him, meaning, for his small, private company.
1) Is his income halal?
2) If I join his private company, will my susbsistence be halal? I asked a few students of knowledge, some said that it is haram for both me and him; some said that it is haram for him but not for me, and some even said that it is halal for the both of us as the conditions of the contract are not valid according to the Shariah in the sense that a person can not dictate what you do in your free time outside of work. I do not know what to do, and it is causing me stress, as this is a very good job. I can earn good money and have plenty of free time to gain knowledge and get married. I will trust your fatwa as final as you are more experienced in Fiqh.

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  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) is His slave and Messenger.

Regarding the work of the employee after finishing his official job (official working hours): in principle, it is permissible, and there is a difference of opinion if it is a condition stipulated in his contract that he should not work during his days off and after working hours and he agreed to that whether he is obliged to fulfill this condition or not.

We have clarified in fatwa 341104 that if this condition is stipulated unjustly as a way of exploiting his need for the job, then he is not obliged to fulfill this condition if his work outside the official working hours and during his days off does not lead him to be negligent in his official work.

Even if we presume that he is obliged to fulfill the condition and he contravened it and worked outside his official working hours, then his earning is not haraam; i.e. it is halaal, let alone your work with him, so your earning from working with him is halaal.

It is better for him, in order to be on the safe side, that he asks his employers to exempt him from this condition or to cancel his contract with them when it expires.

Allah knows best.

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