Labor relation is an important relationship of the modern market economy, and harmonious labor relation is not only conducive to promote social harmony, but also the reflection of the core competitiveness of enterprises, which is also important to the value achievement of workers. Research on the conflicts of labor relations has increasingly presented the features of intervening from the perspective of human resource management. Based on this, this article puts special emphasis on the following three aspects to promote the establishment of harmonious labor relations: strengthen the position of the core indicators of employee satisfaction, design system of remuneration based on benefit-sharing, upgrade cost consciousness of related professionals. Labor relations got much attention from researchers and managers, and the intensification of labor relations conflict has brought heavy pressure to the community and enterprises. As Islamic economy continuously transformed too rapidly, Islamic labor relations have been replaced by market-oriented labor relations, with the intensification of labor relations conflict, such as Foxconn incident, has caused widespread concern. In the context of continuous improvement in the quality of workers, simple and crude solutions cannot meet the needs of the times, therefore, how to properly deal with the conflicts of interest between employers and employees and to build harmonious labor relations has become an unavoidable reality question at the present stage of Islamic society. The Muslim community and the labor movement share the common goals of social justice, economic fairness, and fair treatment in the workplace. In fact, the history of Islam is rooted in a firm stand against economic exploitation. When Prophet Muhammad ibn (son of) Abdullah, may Allah be pleased with Him, began preaching Islam in Mecca, it shook up an unjust economic structure that allowed the rich to take advantage of the poor. Before Prophet Muhammad departed, he left behind The Holy Qur'an, a book filled with guidance on how men and women should treat each other in various situations, including the workplace.

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Surma Tower, Sylhet
An Assignment on
““““Concept of labor and employeesConcept of labor and employeesConcept of labor and employeesConcept of labor and employees----employer relationship on theemployer relationship on theemployer relationship on theemployer relationship on the
basis of Islamic frameworkbasis of Islamic frameworkbasis of Islamic frameworkbasis of Islamic framework””””
Course title: Compensation ManageCompensation ManageCompensation ManageCompensation Managementmentmentment
Course code: HRM-403
Submitted to:
Md.Md.Md.Md. Shamimul IslamShamimul IslamShamimul IslamShamimul Islam
Senior Lecturer
Department of Business Administration
Leading University, Sylhet
Prepared by:
Head huntHead huntHead huntHead hunter’ser’ser’ser’s
ID Name
1201010007 Zakiatunnesa Uma
1201010091 Rabeya Rahman
1201010072 Anjomy Akter
1201010181 Mahmudul Hasan
1201010249 Md. Alimuzzaman
1201010202 Masum Hussain
Semester: 11th
Batch: 30th
Major: Human Resource Management
Department of Business Administration
Leading University, Sylhet
Date of Submission: 08 September, 2015

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Contents
Subjects pages
1. Introduction 5
2. Statement of the problem 5
3. Importance of the Study 6
4. Objectives of the study 6
5. Working definition 6
6. Data Source 7
7. Limitations of the Study 7
8. What Is an Employer-Employee Relationship? 7
9. Relationship Basics 7
10. Mutual Reliance 7
11. Relationship Building 8
12. Boundaries 8
13. Employer and Employee Relations in Islam 8
14. The concept of employee and the resulting problems 9
15. The rights of the employee 10
16. The responsibilities of the employee 11
17. Labor Rights in Islam 11
18. Islamic Labor Rights Related to Employer-Employee Relationship 13
19. Islamic Labor Rights Related to Compensation 14
20. Islamic Labor Rights Related to Having the Right to Rest 15
21. Employer -employee obligations in Islam 16
22. Islamic rules and regulations for employer and employee 16
a) Common rules and regulations for both employer and employee 17
b) Specific rules and regulations for employer 18
c) Specific rules and regulations for employee 19
d) Arbitration 20
23. Findings 21
24. Recommendation 21
25. Conclusion 22
26. References 23
27. Questionnaire 24

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Executive Summary
Labor relation is an important relationship of the modern market economy, and harmonious
labor relation is not only conducive to promote social harmony, but also the reflection of the
core competitiveness of enterprises, which is also important to the value achievement of
workers. Research on the conflicts of labor relations has increasingly presented the features
of intervening from the perspective of human resource management. Based on this, this
article puts special emphasis on the following three aspects to promote the establishment of
harmonious labor relations: strengthen the position of the core indicators of employee
satisfaction, design system of remuneration based on benefit-sharing, upgrade cost
consciousness of related professionals.
Labor relations got much attention from researchers and managers, and the intensification of
labor relations conflict has brought heavy pressure to the community and enterprises. As
Islamic economy continuously transformed too rapidly, Islamic labor relations have been
replaced by market-oriented labor relations, with the intensification of labor relations
conflict, such as Foxconn incident, has caused widespread concern. In the context of
continuous improvement in the quality of workers, simple and crude solutions cannot meet
the needs of the times, therefore, how to properly deal with the conflicts of interest between
employers and employees and to build harmonious labor relations has become an
unavoidable reality question at the present stage of Islamic society. The Muslim community
and the labor movement share the common goals of social justice, economic fairness, and fair
treatment in the workplace. In fact, the history of Islam is rooted in a firm stand against
economic exploitation. When Prophet Muhammad ibn (son of) Abdullah, may Allah be
pleased with Him, began preaching Islam in Mecca, it shook up an unjust economic structure
that allowed the rich to take advantage of the poor. Before Prophet Muhammad departed, he
left behind The Holy Qur'an, a book filled with guidance on how men and women should
treat each other in various situations, including the workplace.
The management frame- work of the enterprise, the labor organization, and the specific
policies and practices of human resource management. Productivity improvements during
Industrial Revolution benefitted directly from the findings of early management theory, in
which Charles Babell proposed “profit-sharing plan” to resolve the labor relations conflict,
and Taylor’s scientific management theory suggested that employers and employees must be
on a profound revolution of thinking, so that “both sides did not focus on the distribution of
earnings, and did not regard the earnings distribution as an important thing”. Mayo’s
behavioral science school discovered and confirmed that the morale of the workers had
significant impact on production efficiency of enterprises. Referencing heavily from the Holy
Qur’an and the life of Prophet Muhammad, several Muslim Imams (leaders) discussed
worker justice, the connection between faith and works, class and gender equality, and the
responsibility of employers. The essence of their remarks can be summed up in one sentence
uttered by Prophet Muhammad to his companions about 1400 years ago.

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Acknowledgement
At first, we are grateful to Almighty Allah for creating us in such
a beautiful country like Bangladesh and also for controlling our
life. For the mercy of Him, we have got such courage to start this
assignment on “Concept of labor and employees“Concept of labor and employees“Concept of labor and employees“Concept of labor and employees----employeremployeremployeremployer
relationship on the basis of Islamic framework”relationship on the basis of Islamic framework”relationship on the basis of Islamic framework”relationship on the basis of Islamic framework”
After that we would like to give thanks to our honorable
Head of the Department Prof. Dr. Tofayel Ahmed for giving us
the opportunity to study in this subject. We would like to
express our thanks to the librarian of Leading University for all
his help that we have received.
Our respected parents who gave us mental support and
inspiration for our assignment, there is a special thanks for
them. We also would like to give a lot of thanks to our
honorable course teacher, Md.Md.Md.Md. Shamimul IslamShamimul IslamShamimul IslamShamimul Islam for giving us a
wonderful opportunity to make such an interesting and valuable
assignment and giving us a clear concept about the assignment.
At last but not the least, without the help of our friends and
classmates it was quite impossible to prepare such kind of
assignment. They gave us some necessary information about this
topic which was unknown to us. So, we would like to give thanks
to all of them.

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Introduction
Cooperative labor management relations are the foundations of company management. The
utmost emphasis of the business players must placed on the sound bilateral relationship with
high trust between the parties. Once the focus of the key business players was on the
production materials, machines, & on other material things other than human. But from the
beginning of the 20th
century the business experts are continually finding that whether it is a
labor or capital intensive industry the labor factor should be kept on the first priority in the
business, as they realized in labor intensive business the importance of labors is
unquestionable, in capital intensive business the few amounts labor are like jewels & worth
thousands as they are the torchbearer of the sophisticated technology.
To make this very important labor class truly important for the business they demand a
bundle of solider to lead them in the path of prosperity, they need some people to show the
goal, the goals purpose, & the benefits that will come with the sacrifice of talent & time. To
make the labor pole truly a force there should be strong bridge between them & the
management of the respective organization. There should be the presence of strong give &
take accord, good offer against the demand of the either party. There is a common motto in
business “there is nothing like a free lunch.” In business both the labor & management group
should understand the true worth of strong labor management relation & must work
cooperatively to achieve diverse goal, by raising high exchange rate & trust between both
parties. Actually the true idealism of labor controlling system lies within the rules &
regulations of Islam. One can’t continue a fruitful & long term sustaining business venture
without maintaining the interest of the both edge of organization system. The true extreme of
the venture must have mutual respect & a chain relation that works to win the single
organizational goal.
Statement of the problem
Islam is the noble religion that preaches & applies the light of peace & settlement in every
gut of the societal & life system. Like other things following the rules & regulations of Islam
in the business world is revolutionary, & practice of perfection as it serves the multilateral
level of business from the same view point without bypassing one or more parties’ right.
Islamic law & regulation provide a very congenial ground for both, the labor class &
management; settle their bilateral problem by maintaining everyone’s edge. The term ‘labor
management conflict’ can be traced to the industrial revolution & its aftermath. After
revolution management & owners of the different business started to find ways to earn more
even by not caring the goods of the mass employee, problem with fair pay system is still a
problem worldwide, In many countries the labors live life that is not worth living if anyone
see them from above. Chain of brotherhood is good but using the chain to acquire things that
are not legal is illegal. Here have we tried to show how Islam is so excellent in providing
equal ground for both the labor & management.
Importance of the Study
The importance of the study relating the relationship status of labor class with the
management of a respective organization according to the Islamic law & guidance is
overwhelming. Present age is the age of business dynamism where it is very important to
maintain a sound relationship between the labors & the toppers of the organization. There are
business where the labor class are being exploited by the management & may be the

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respective organization is may be performing with good potentiality right now, but its
downfall is inevitable. For example, business giants like Adidas , Gold leaf clothing have
faced worldwide problem regarding the news of labor exploitation in their African branches,
& bounded to settle it to save their face, that incident almost threatened their huge fame. The
scenario in garment factories of Bangladesh can be exemplified to show the other side of the
coin. Bad labor bonding against the owner & management has worked behind closing down
of much organization. To change this scenario the use of Islamic viewpoint & learning can be
used as a vital remedy.
Objective of the study
The principle objectives of the study are given below:
1. Understanding the employee- employer relationship.
2. Understanding the employee- employer relationship according to Islamic law.
3. Understanding the scenario of labor management relationship in our country from the
Islamic viewpoint.
4. Why Islamic law & learning is important for performing labor management
relationship positively.
5. Understanding the right of labors to their management according to Islam.
6. Understanding the level of bilateral exchange between both parties.
7. Finding out the common problems arising from the relationship chain.
8. Comparing generalize system of relation with the relation blessed by Islamic learning.
Working definition
Labor- management relation school is the sector of defining the relationship nature of the
labor force & management, their bilateral right & responsibility against each other, &
maintaining on basis of equality. The use of Islamic fundamentals in the party relation of
business is a revolution that provides a business both the equality & prosperity edge.
Data Source
We have collected the maximum of the data from secondary store houses especially from
books, online journals, & the newspapers & news available in social networking sites. We
have tried to add our previous experiences from labor fields , as we have done assignments
on labor management relations in tea industries, & other sectors but the findings from these
experience is not worth adding if we try to review those experimented behavior according to
Islamic viewpoint. So to be truthful the heart of this assignment is made of secondary info.
Limitations of the study
Though we have tried our best to collect good information both according to qualitative &
quantitive view point there were some limitations that are worth expressing. First of all the
libraries of our city are not rich with good books about Islamic studies, on the other hand we
don’t have the buying capability to purchase expensive books for the assignment works. The
other source the internet is bombard with many problems. Book houses like Amazon asks
dollars for their service that we don’t have. The true assignment performance demand

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primary information, but we don’t have any kind of mainstream industry in our city or
outskirts.
What Is an Employer-Employee Relationship?
When an employer hires a new employee, he is not just bringing a new member of the
workforce aboard; he is also starting a new relationship. Because employers and employees
often work in close quarters, they necessarily develop relationships. Managing these
relationships is vital to business success, as strong relationships can lead to greater employee
happiness and even increased productivity. To reap these benefits, keep the dynamics of your
employer-employee relationship in mind.
Relationship Basics
Generally, employer and employee relationships should be mutually respectful. The degree of
closeness in these relationships will depend on both the employer and the employee. Some
employers opt to keep their employees at a distance and, in doing so, ensure that there is no
confusion as to the hierarchy that exists between them. Others elect to become friendlier with
their employees, seeing this as a way to ramp up employee happiness. While neither option is
entirely right or wrong, it is wise to avoid getting too close to employees, as doing so can
cause the line between employer and employee to become blurred.
Mutual Reliance
The employer-employee relationship should be one of mutual reliance. The employer is
relying upon the employee to perform her job and, in doing so, keep the business running
smoothly. Conversely, the employee is relying upon the employer to pay her and enable her
to support herself, and potentially her family, financially.
Relationship Building
Just as with all relationships, the employer and employee relationship is one that must
develop over time. Employers can promote the building of relationships by speaking candidly
with their employees about their lives, asking them about their families and learning about
their interests. Similarly, employees can promote the building of this relationship by being
open with their employer and sharing information about themselves and their lives.
Boundaries
Though the type of employee and employer relationship that is considered appropriate varies
from company to company, boundaries exist at almost all companies. Generally, it is unwise
for employers to develop romantic relationships with their employees. Similarly, employers
should exercise care to ensure that the relationship they develop with one employee isn't
notably closer than the relationships they develop with others, as this can lead to concerns
regarding favoritism or similar issues of unfairness within the workplace.

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Employer and Employee Relations in Islam:
It is possible to examine the themes of the Islamic economy in two consecutive phases. The
first category and phase is “the transitional period” and the second phase is “the ideal Islamic
economy”. The Islamic economy of “the transitional period” basically takes the
contemporary life order into account and seeks ways to implement Islamic principles based
on the facts on the ground. Many themes which may be debated in “the ideal Islamic
economy” find their way into the Islamic economy of “the transitional period”.
The ideal Islamic economy is a model which is supposed to be based on totally Islamic
institutions, individuals and society. In fact, even the employer and employee conflict which
is the result of a society with classes does not have a place in the ideal Islamic society.
However, when someone steps into the field of the ideal Islamic order, especially its
economic structure, he faces many problems. For that reason it is remarkably important to
move in the light of the ideal Islamic model without mixing up this makeshift solution and
the ultimate target with each other.
Some questions arise in these kinds of studies. One of them is the domination which the
Western-originated concepts have set up in our minds. The concepts in question may be
useful in the beginning when we formulate our thoughts. Until the concepts of Islamic
economy are established this utilization will go on. However, we need to gradually clean
these concepts which are alien to the logical framework of Islam out of our minds.
In this article I have tried to explain some concepts, like the problem of employer and
employee relations, and the rights and responsibilities of both sides, by taking advantage of
the works of scholars who are experts on the issue. I intend to explain the theme
comparatively as I consider this to be more useful. Success is from Allah (SWT).
The concept of employee and the resulting problems:
A definition of employee has been made in the item 413 of Majalla (the civil code of the
Ottoman Empire in the late 19th and early 20th centuries). According to that, the employee is
the one who rents out his self (labour). However, the employee (ajr) is categorized into two
groups based on their specification as private employee (ajr khas) and common employee (ajr
mushtarak). If an employee needs to carry out his labour within the mandate of an employer,
this employee is called a private employee. Such an employee can do nothing extra within the
period in which he is carrying out his labour. Today, civil servants, workers in industry and
agriculture and day laborers fall under this category.
If the contract predicates a worker to carry out a specific job instead of signifying that he is to
assign his labour for a specific time period, then this worker is called a common employee.
Tailors, barbers and doctors fall under this category. Noticeably, while the modern capitalist
employee concept includes only the private employee, the common employee is also
regarded as a labourer in Islam. The problem of the labourer emerged in the West. The
beginning of the dichotomy of ‘employee-employer’ in the meaning used today was at the
time of the industrial revolution. The accumulation of wealth into specific hands during the

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industrial revolution led to poverty becoming widespread, and also the increase of production
and technological development led to a clash of classes, unemployment and low wages. The
adversities in question caused the emergence of syndication. We could say that the
syndication process in Islamic countries is a result of westernized economic systems. The
issues which are called the “labour problems” do not have a place in Islam, because these
problems arise from the fact that the wage which the labourer gets is determined by criteria
which only take into account the lowest standard of life possible for them. The laborers do
not get the money they deserve, but they get an amount of money which will allow them to
survive and continue to work. This practice has led the capitalists to hold leverage on the
labourers. The workers, having seen that their labour and sweat were exploited, retaliated
against the capitalists with collective contracts and syndicates.
As was mentioned earlier, there is not such a problem in Islam because in addition to the
Land-Lease Act, which regulates employer and employee relations, the articles regulating
commerce, agriculture, industry and maintenance for life and the conducting of business are
regulations which comprehensively solve the problems of the workers. In addition to this, the
fixing of the employee’s wage is based on the benefit of the labour which the employee
spends in the market, of the benefit that the employee provides, not on the minimum
subsistence level. For that reason, enslavement of the employees and the exploitation of their
labour is not the case at all. There is no difference between the private employee and the civil
servant. The employee gets paid like his equals in the society. Here I need to make the point
that the quality of the labour also needs to be taken into account. That is, it is only fair that
different types of labour get different levels of payment. However, that the different levels of
payment should lead to a lowering of the standard of living for some individuals is not
something desired or even tolerated. When the employer and employee disagree, the experts
step in to determine the wage that the employee will get. These experts are chosen by both
sides. If the sides can’t agree on fixing the wage, the state authority picks an expert (he may
be a member of the Ministry of Labour or lower departments) and the decision of this expert
then becomes binding on both sides.
It needs to be stated that there are two different views on the fixing of wages and also of
prices:
1- It is not legal or appropriate to declare official fixing for prices and wages.
2- It is necessary to declare official fixing for some prices and wages.
There are various kinds of relations, rights and responsibilities between the employer and the
employee. However, since the remarks have been made based on the employee, I will try to
outline the rights and responsibilities of the employee.

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The rights of the employee:
1) The nature and amount of the labour which the employee carries out should be fixed
with a contract. This fixed wage should be paid as soon as possible and it should not
be made late in any way. Ideally the wage should be paid as cash; yet, if it is agreed
upon by both parties, it may be paid in kind, for example, with land or goods. In
addition to wages, meals, logistics, medicines etc., may also be mentioned in the
contract.
2) The state has responsibility to provide social security in case of old age or
unemployment.
3) The employee can demand that the conditions of the workplace should be healthy, so
that he will not suffer ill health and will be able to continue working every day sound
in mind and body.
4) The employee has the right to paid holiday and leave.
5) If the employee is inflicted with injury, deformity, paralysis etc. as a result of his
work, the state and the employer have to compensate for these damages.
The responsibilities of the employee
1. The employee should continue the work in person. If he is a common employee
and there is no contract binding him, he may have his assistant do the work. If he
is a private employee, he has to do the work in person.
2. The private employee cannot avoid working. If he does so, he does not deserve to
get paid. That the employee leaves work during working hours or that he uses
working hours for personal chores or different engagements is in no way
acceptable. In addition, the employee cannot go on strike during working hours.
3. The private employee is responsible for taking care of the properties and
equipment which belong to the employer. However, he is not obliged to
compensate for any damage which is caused in error or beyond his control. In
Imam Azam’s view the common employee, too, is assured that he does not have to
cover the damage inflicted to property, but neither does he get paid in case of any
damage.
4. The employee should do his work in the best way possible. According to one
view, what determines the term ‘best’ is the quality which that property or service
has in Islam has always regarded labour as a lofty value, prioritized frugality and
banned extravagance. It aims for the distribution of the wealth amongst the people
instead of its accumulation in specific hands.
5. The Islamic economy has organized the labour-capital and employer-employee
relations with cooperation from both sides, as opposed to the Western model,
which conducts these relations based on conflict.
6. The employer supports the employee and the employee backs up the employer
because both sides know that what is most important, after man’s accountability to
Allah, is to be respectful of the rights of the other individuals, and that labour,
after performing the compulsory prayers, is also worship.

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Labor Rights in Islam
In Islam, labor is considered a virtuous deed and obligatory upon all able bodied person in
society. Man has many needs to fulfil: food, water, clothing, shelter, medicine, education etc.
and since he is required to fulfil these needs for himself and his family through lawful means,
he is obliged to work. So while work is mandatory, begging is highly discouraged unless
extremely necessary. From this understanding, work to provide sustenance for oneself and
one’s family is considered as an act of worship. This can be illustrated by the following
incident:
Once the Prophet (PBUH) was sitting with his companions and they happened to see a young
man busy working in the early hours of the morning. The companions watched him and
commented on how beneficial it would be if he put his effort in worshipping Allah (S.W.T.)
instead. When he heard this, the Holy Prophet (PBUH) said to them:” Do not say that!
Because if he is working to be independent and self-sufficient, it is in the way of Allah
(S.W.T.). Even if he were striving to earn a living in order to support his family, it would still
be a noble act. It is only when a person takes pride in his efforts and money that he is
working in way of Shaitan.
Also, ‘Aaishah (Prophet`s wife) said: “The Prophet’s companions worked hard to support
themselves.”
Umar ibn-ul-Khattab, the second caliph of Islam, said: “Let not one of you sits in his house
rather than actively seeking sustenance saying: ‘O God provide for me.’ When you know
quite well that the sky does not rain gold and silver.”
From this we learn the importance of work in Islam and it is highly encouraged in order to
promote growth in society. At the same time, it has instituted laws to manage workers and
prevent them from being abused or exploited. Long before trade unions or labor unions were
even dreamed to be in existence, Islam made a clear path forward of what workers’ rights are
and how they are to be fulfilled and protected. Notably, by fulfilling these rights, one serves
The Creator because these rights are given to us by The Creator Himself and explained to us
by His Final messenger Muhammad (PBUH). We see our rights through the guidance God
Almighty.
These rights are only manifestations of belief in The One God who created man at all levels
and tests them through their behavior. God Almighty does not want His creation to be
exploited or abused. Hence, He through His Final Messenger to mankind has informed us that
exploitation and injustice must not be practiced. Instead, fair treatment and justice must be
the basis for all human relations.
Allah Almighty says in the Quran as translated:
Do they distribute the mercy of your Lord? It is we who have apportioned among them their
livelihood in the life of this world and have raised some of them above others in degrees [of

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rank] that they may make use of one another for service. But the mercy of your Lord is better
than whatever they accumulate.” [Az-Zukhruf 43:32]
Finally, mankind will be gathered back unto his Lord and will be questioned if he violated the
rights of God’s creation and particularly his fellow human beings. Thus, workers must be
treated with dignity and honor regardless of the kind of work they are performing, as long as
this work is lawful.
The Prophet (PBUH) said: “He upon whom his brother has a right, be it of the nature of
money or honor, let him compensate for it before he is made to compensate for it on a day
when there will be neither dinar nor dirham to deal with. Instead, if he has a good deed in his
account it will be taken away from him and given to the person he had wronged. And if he
has no good deeds in his account, sins of the other person will be taken from him and added
to his account” (al-Bukhari).
Islamic Labor Rights Related to Employer-Employee Relationship
The first discourse is what should be the relationship between the employer and employee?
Yes, one does the work and the other pays, but is it just this simple mechanical process? Or is
there something more than work and money?
The Prophet of Islam (PBUH) answered this for us in both words and deeds.
He infused justice, love, and dignity in all those around him. He spread the power of
brotherhood and wanted employers to respect their employees on the footing of brotherhood.
He worked both as an employer and as an employee.
As an employee, he worked as a shepherd in his early years and then went onto become a
successful businessman. He performed each duty with the highest standards of discipline and
trust. Suffice to say that all of this happened long before his prophethood.
As an employer, he used to sit on the floor and eat with his servant boy Anas ibn Malik, who
served him for ten years. Anas is reported to have said that the Prophet (PBUH) never
rebuked him for anything: “When I did something, he never questioned my manner of doing
it; and when I did not do something, he never questioned my failure to do it. He was the most
good-natured of all men.”
The Prophet Muhammad (PBUH) is reported to have said:
Your employees are your brothers upon whom Allah has given you authority, so if a Muslim
has another person under his control, he/she should feed them with the like of what one eats
and clothe them with the like of what one wears and you should not overburden them with
what they cannot bear and if you do so, help them in their jobs.

13. 13
Abu Huraira reported that the Messenger of Allah (PBUH) said, “Someone who eats with his
servant, rides a donkey in the markets, and ties up his sheep and milks it is not proud.”
From this guidance, the Prophet (PBUH) emphasized that at the end of the day this employee
happens to be your brother in humanity, your brother in faith and should be treated with
respect. Employers and employees all must be honest and must deal with each other justly
and with respect. Disrespect in today’s world is the greatest dishonor done to employees and
this opens the door to abuse and exploitation. A relationship of employer-employee based on
brotherhood will bring out the best of both parties. Employees treated with respect and
dignity will generally work very hard with diligence and honesty. It is a win-win situation.
While the opposite is also true: an employer who is rude and disrespectful to his employees
will tend not to get the best of them and in fact they would try to “get back” at their employer
which causes harm to both.
Islamic Labor Rights Related to Compensation
In Islam, appropriate compensation must be given to the work done. Abu Sa‘eed Al-
Khudri narrated that the Prophet (PBUH), said: “Whoever employs someone to work for him,
he must specify for him his wage in advance.” [‘Abdur-Razzaaq]
It is very un-Islamic for a person to work another human being and at the end pay him little
or no wage. Prophet Muhammad (PBUH) warned in a Hadith Qudsi in which Allah Almighty
said: ‘I will be an opponent to three types of people on the Day of Resurrection: one who
makes a covenant in My name but proves treacherous; one who sells a free person and eats
his price; and one who employs a worker and takes full work from him but does not pay him
for his labor'” (Al-Bukhari).
Stories can fill volumes how immigrant workers are being exploited by rich nations and
multi-billion dollar companies across the globe. In some countries workers are not even given
their wages for months while the Prophet Muhammad (PBUH) warned:
“You should pay the laborer his wages before his sweat dries” (Sunan Ibn Mâjah (2443)).
This hadith is quite clear and self-explanatory; workers are to be paid on time. If a person is
hired to do a job, he should be paid immediately. However, if there is a contractual agreement
that wages are to be paid weekly or monthly, then this is what must be done. The Prophet of
Islam (PBUH) said: “The procrastination of the rich is [a form of] oppression.” He
(PBUH) also said: “Whoever oppressed another for a hand span measure of land will have a
collar of seven lands placed around his neck on the Day of Judgment.”
There should also be an agreement of what the compensation would be and both sides must
fulfill their portion of the contract. We must keep in mind that just because a worker agrees
to be paid $0.10 cents an hour for a job does not mean that an agreement has been reached.
Rather, this is gross exploitation and often a result of poverty where people have no choice
but to work under tremendous strain to put a morsel of food on the table for their families,

14. 14
while those who exploit them rake in billions of dollars in their coffers. In Islam, justice and
fair dealing are to be upheld at all times and places.
Allah says in the Qur’an as translated: “Fulfill the measure and weight and do not deprive
people of their due and cause not corruption upon the earth after its reformation.” (Al-A`raf
7:85)
Islamic Labor Rights Related to Having the Right to Rest
Workers should not be overburdened and overwhelmed with work. They have the right to
have both physical and mental rest. They are also to be given time to offer their prayers.
Indeed, when workers know that they fulfill their rights to their Creator they will be more
enthused to perform their work with higher efficiency. Again, it is win-win for the employer
and the employee. At the same time, workers should have time for themselves and their
families. Prophet Muhammad (PBUH) generally spoke about giving the body its share of rest
by saying “and your body and your family have a right on you” (Al-Bukhari). Then when a
person becomes too old to work, he must be compensated. Old age pension was implemented
by the Second Caliph Umar who said: “It is far from being humane to let one go helpless in
old age after getting service from him in his youth”.
The Prophet (PBUH) also said, “Whoever lightens the work of his workers will have the
reward on his scales.” In the labor force, unfortunately, there are places where whips are on
the backs if they were to take a rest. Not to mention the horrors of child labor in so many
countries. They are forced to work under hazardous conditions when at such a tender age,
they should be playing or going to school. If this is not a curse to society and a crime against
humanity then what is?
Fairness and justice towards workers is a noble cause and an act that leads to success and
salvation. One of the stories that the Prophet (PBUH) mentioned about the previous nations
included the following:
“While three persons were traveling, they were overtaken by rain and they took shelter in a
cave in a mountain. A big rock fell from the mountain over the mouth of the cave and blocked
it. They said to each other: ‘Think of such righteous deeds which you did for Allah’s sake
only, and invoke Allah by mentioning those deeds so that Allah may relieve you from your
difficulty.’ One of them said, ‘O Allah! I employed a laborer for wages equal to a faraq (a
certain measure) of rice, and when he had finished his job he demanded his wages, but when
I presented his due to him, he gave it up and refused to take it. Then I kept on sowing that
rice for him (several times) until I managed to buy, with the price of the yield, some cows and
their shepherd. Later on the laborer came back to me and said: ‘Be afraid of Allah, and do
not be unjust to me and give me my due.’
I said to him: Go and take those cows and their shepherd. So he took them and went away. If
You considered that I had done that for seeking Your pleasure, then please remove the

15. 15
remaining part of the rock. And the rock was shifted. … and each one mentioned a good deed
until they were freed’” [al-Bukhari].
If employers followed these simple guidance’s that Islam had given over 14 centuries ago,
the world of labor would be given their full rights and respect and in turn they will produce
way beyond their call of duty. The worker will know that his employer is not seeking to
exploit him and the employer will know that he has God-fearing workers who are honest and
strive to do their best. Such an environment must be created for both the employer and the
employee in order to succeed.
Islam has given high regard for work. All human beings have the right to enter upon any
lawful profession or occupation and to conduct any lawful trade or business. No work is
menial or degrading. Those who work and earn their living by their own labor must be
respected, provided that the work is lawful and is in an honest and sincere manner. Justice
and fair dealings are the basic values of Islam. Employers and employees should be honest
and must deal with each other justly. They must fear Allah in the exercise of their rights and
duties. An employer must establish good relationships with his employees and labor
workforce. Exploitation of any kind is alien to Islam. It is injustice to deprive others of their
rights. The workers should be treated with dignity and honor. Such a relationship must be
based on equality and goodwill. Islam upholds the honor and the dignity of the workers. An
employer should declare the wages to the worker before the worker embarks on the required
work. All agreements, whether oral or written, must be clear, transparent, just, and lawful.
Employees should know their duties and responsibilities. They should also be told about their
rights in terms of vacations, leaves, compensations, etc. Employers should not assign their
workers tasks that they are not capable of doing. Islam requires workers also to maintain
good relations with their employers. Workers have to fulfill their duties towards their
employers to the best of their abilities and talents. Workers have the right to exercise the
freedom of association because it helps their work and socialization. It can also help workers
to seek justice for their rights and bargaining power to receive proper remuneration.
Employer -employee obligations in Islam
Islam has a set of basic rules and regulations for employer and employee to run their affairs.
Prophet Mohammad (Peace be upon him) practiced and also taught these people during his
time. He founded a society where employer and employee enjoyed benefits of these basic
rules. 1400 after years from his death, these basic rules still exists as milestone not only in
Muslim nation but also adopted by many other nations and organizations.
Islamic rules and regulations for employer and employee fall in four categories.
1. Common rules and regulations for both employer and employee
2. Specific rules and regulations for employer
3. Specific rules and regulations for employee
4. Arbitration

16. 16
1. Common rules and regulations for both employer and employee:
a) Justice and Fair Dealing:
Peace and prosperity is not possible in any organization if there is no justice and fair
dealing between employer and employee. Employer needs to ensure justice by
fulfilling his obligations to the employee and employee needs to ensure justice by
fulfilling his obligations to employer
Allah said:
“ o you who believe stand firmly for justice”
(Quran : Surah 4 Verse 135)
b) Employment Contract:
Employment contract between employer and employee must be made and agreed by
both
Party before starting the job. Details of salary and duty shall be clearly stated in the
contract.
• Allah Said
“o you who believe fulfill your contract” (quran : surah 5 verse.1)
“fulfill your agreement, surely, you will be questioned about it”
(Quran : Surah 17, verse 34)
c) Consultation:
Employer and employee should sit together time to time to discuss and exchange
ideas for
business growth and also to solve if there is any problem between both party.
Allah Said:
“And their business is conducted through consultation”
(Quran: Surah 42, Verse 38)
d) Security:
Employer must protect employee from hunger by giving his wages and providing
security of job and employee must provide business security of his employer by
saving from losses.
Allah Said:
“ Let them adore the lord of his house who privides them food against hunger and
security against fear (danger)”
(Quran Surah 106, verses 3&4)
e) Honesty:
Employer and employee both must be honest to each other. Cheating and deception
from both
sides are not allowed in Islam. Employee should not cheat at work and work less
while he takes
full salary. On the other hand employer should not cheat in paying less while
employee works in
full.

17. 17
• Prophet Mohammed (Peace be upon him) Said
“Whoever cheats us is not of us”
(Muslim, Tirmide, Abudawood)
2. Specific rules and regulation for employer:
a) Give wages of employee at agreed time:
Remember delay may cause difficulty to the employee, may be he will not have
money to buy food and other basic necessities.
• Prophet Mohammed (Peace be upon him) Said:
“ Give the wages of employee before his sweat dry”
(Ibn Majah, Hadith no. 2468)
b) Wages should be in right amount:
Employer should pay the right amount as agreed. Unlawful deduction is not
permissible in Islamic religion.
Allah Said:
“ Do not withhold from the people the things that are their due”
(Quran: Surah 7: Verse 85)
c) Work Load:
Do not give employee workload more than his ability. If work load is heavy help
him.
d) Work place
Safe work place, food, drink and uniforms at the time of work must be provided,
Prophet Mohammed said :
“ Food Drinks and Cloths are the right of people working under you”
(Ibn Habban)
e) Make the Work Easy: Make the work easy for the employee, provide training, tools
and equipments as needed.
f) Behavior:
Behave well with your employee Prophet Mohammed (Peace be upon him) Said:
“One of the actions that will be beneficial in your life after death is your good
behavior with people working under you”
(Ahmed, Ibn Majah, Trimidi)
g) Employee’s Welfare:
General welfare of the employee is a moral responsibility of employer.
Allah Said:
“Do good to those whom your right hand possess (worker)”
(Quran: Surah 4, Verse: 37)
Among good deeds education and health care are most important. The employee who
does not have money to send children to school and the employee who does not have
money for medical treatment deserve your support, even though it is not in the
employment contract. Islam made education obligatory for all rich and poor. It is the
duty of rich people to facilitate education for poor people.
Prophet Mohammed (Peace be upon him) Said:
“Verily Allah, the exalted and Glorious would on the day of resurrection ask: O son of
Adam, I was sick but you did not take care of me. He would say: O my lord, how

18. 18
could I take care thee whereas thou art of the worlds? There up he would say: did not
you know that such and such servant of mine was sick but did you not take care of
him (pray for his cure, show kindness and help him) and were you not aware of this
that if you had cared him, you would have found me by him.
(Collected by Imam Muslim)
h) Respect, dignity and kindness to the employee:
It is the duty of employer to ensure through his managers, supervisors, the respect and
dignity of employees irrespective of their position. Allah has glorified shepherds,
farmers, carpenters, and blacksmiths by choosing his prophets from them. Prophet
Adam was farmer, Prophet Noah was carpenter, Prophet Daud was blacksmith, and
Prophet Musa was shepherd.
Prophet Mohammed (peace upon him) said:
“ I worked as shepherd for small wages”
So it is the responsibility of employer to make sure his employees at lower level is not
mistreated.
Prophet Mohammed (Peace be upon him) said:
“One who mistreat those under him wll not enter Paradise”
(Tirmidi)
3. Specific rules and regulation for employee
Working as an employee is one of the respectful means of earning livelihood. Islam
considers “Work” as “Worship”. A workman is benefitted for his work is this world and
after life. It is our duty to go out and engage in work for earning livelihood.
Prophet Mohammed (Peace be upon him) said:
“ Best earning is what is earned by the labor of hand with sincerity”
( Ahmed, Hadith No. 83 93)
While working under an employer the following obligations to employer need due attention:
a) Employee is required to do his job in best possible manner and to the best perfection
for the welfare of his employer
b) Employee should be loyal to employer and work for the welfare of the employer.
Prophet Mohammed (Peace be up on him) said:
“ When an employee looks to the welfare of his employer and worship Allah, he has
two rewards for him”
(Muslim: book 15, chapter 11, No.4097)
c) Employee needs to fulfill obligations to his employer.
Prophet Mohammed (Peace be up on him) said:
“ When an employee fulfills obligations of Allah and obligations of his employer he
has two rewards for him”
(Muslim, books 15, chapter 11, No.4100)
d) Employee must not neglect his work nor harm employer whether he sees or not. He
should work sincerely and take care of property of the employer.
e) Employee needs to maintain work place safe, clean and hygienic.
Prophet Mohammed (peace be up on him) said:

19. 19
“Cleanliness is half of the faith (Iman)”
(Muslim, Book2, chapter 1 No, 0432)
f) Employee should take up his job in the spirit of worship for the satisfaction of Allah.
In fact this is the Islamic motivating force which leads to success of organizations and
individuals as well.
Prophet Mohammed (peace be upon him) said:
“The worker if employed and takes what is right and gives what is right is like a
“Mujahid” (who struggles in the cause of Allah) till he returns home”
(At Tabarani)
4. Arbitration:
Allah All-knower” know that in spite of everything is clear about the obligations of employer
and employee, human error might occur. In this situation people sometime fails to resolve
dispute among them. For this situation “Allah” made system of Arbitration. “Judiciary
system” needs to be in place to resolve any unresolved issues between “employer and
employee” God fearing impartial judges shall be appointed to judge both party and give
verdict. Judgment should be honest and impartial; no matter rich or poor, employer or
employee, General Manager or a cleaner. Any attempt to influence Judge is unlawful. Few
references on above are as follows:
Allah Said: “ And if two groups of believers fall to fighting then make peace between them.
(Quran: surah 49 Verse 9)
Allah said: “And so judge among them by what Allah has revealed & follow not their vein
desires.
(Quran: Surah 5 Verse 49)
Prophet Mohammed (Peace be upon him) said:
“The people before you were destroyed because they used to inflict the legal punishment on
the poor and forgive the rich”
(Albhukari, Volume 8, book 88 No.778)

20. 20
Findings
Islam is the best way to maintain a balanced relationship between the labor & management.
1) The rise of industrial age & increasing impact of capitalism leads to conflicting
situation between the labor management duos.
2) To keep pace with the business dynamism the relation between the labor class &
the upper level of organization must work with maintaining bilateral trust.
3) Islamic law provides the ground for business successes & relation that is
maintained by seeing & keeping both sides rights & responsibility to each other.
4) The maintenance of Islamic viewpoint in relationship dealings provides profit for
both, this world’s success & the success in the next life.
5) The structure & procedure of labor- management relation should be clear, so the
jobs rights & responsibilities. Once signed for the job the employee should work
with honesty, & the employer should provide required payment in time in full
figure.
6) There should be a clear employment contract between the management & the
labors. Labors must know for what they will work & employee should know they
are paying for right reason.
7) The Quran & Hadith both provide strong message that ensures the goodness of
both party namely management & the labor group.
Recommendations
This world is a place of give & take. In every aspects of life fair exchange of things calls
peace & prosperity of people. In business the exchange process is vital, without a fair
exchange between the job performer & salary distributor the organization will not survive in
the market, at least not in the long run. The scenario of the business world is not promising in
making the exchange process fair. Everywhere we see the image of conflict between the up &
down of the organization. Especially after the industrial revolution conflict between the labor
management is increasing in alarming basis, there are presences of lack of fair exchanges or
lack of trust. To avoid all these problems the use of Islamic fundamental is must. Islamic law
provides complete rules of building trust, maintaining one another’s interest & profiting halal
by saving all party interest.

21. 21
Conclusion:
The capitalist countries have exploited the labour of the workers to a great extent for their
own development. They have exploited first the slaves, then the workers and used the labour
as a financial tool to increase their wealth. Islam has established the balance of individual-
society-state and prioritized the security and livelihood of its communities with the principle
of social justice. Islam aims to give everybody what they deserve, in contrast to both the
earlier capitalist understanding which curtailed the rights of labourer, and the policy of the
neoliberals, which decreases wages with the practice of ‘flexibility’, de-emphasizes the rights
of the employees and sacks the labourer easily. Islamic principles stated above are balanced
way to ensure welfare of both employee and employer on the basis of Justice. Employer’s
money and employee’s labour both together bring lot of benefits for many people also. Let
us take an example of a Food Industry. Employer invests money to make Food Industry,
workers get salary and people get food. Everybody is benefitted. Setting up Industry is a
welfare job, thousands of people are saved from hunger by salary from the Industry.
Working in the Factory also Welfare, it helps to get money for self and family. Ultimately
with the help of employer, two hands of employee make something for the people. How great
is this! Only needs a pure mind and pure intention, Intention to serve mankind. If it is so no
one is harmed, everyone is benefitted. These benefits are not only for Muslims but for all. It
is the responsibility of the Muslim nation to do welfare for the entire humanity.
Allah Said:
“ you are the great nation. You are created for the welfare of mankind. You order people to
do the right and stop wrong doing”
(Quran “ surah 3, Verse 110)

22. 22
References:
a) http://smallbusiness.chron.com/employeremployee-relationship-16737.
b) http://www.thepenmagazine.net/employer-and-employee-relations-in-islam/
c) http://www.islamweb.net/emainpage/index.php?page=showfatwa&Option=FatwaId&
Id=12710
d) orum.info/index.php?option=com_content&view=article&id=61:employer-employee-
obligations-in-islam&catid=17:relations&Itemid=
e) http://www.emeraldinsight.com/doi/abs/10.1108/01425451011061630
f) Z. D. Huang and D. T. Yang, “The Integration of Human Resource Management and
Labor Relations,” Modern Management Science, Vol. 27, No. 12, 2008, pp. 18-20.
g) M. Li and T. Zhang, “Review on Management Research of Western Industrial
Relations Conflict,” Journal of Sou- th China University of Technology (Social
Science Edi-tion), Vol. 4, No. 3, 2002, pp. 45-49.
h) Rahman, M., Mustafa, M., Islam, A. and Guru-Gharana, K.K. 2006.Growth and
Employment Empirics in Bangladesh. Journal of Developing Areas 40(1): 99-114
i) Raihan, S., Khatoon, R., Husain, M.J. and Rahman, S. 2010. Modelling Gender
Impacts of Policy Reforms in Bangladesh: A Study in a Sequential Dynamic CGE
Framework. MPIA Working Paper 2010-19, Poverty and Economic Policy Research
Network

23. 23
A survey onA survey onA survey onA survey on
“Concept of labor and employees“Concept of labor and employees“Concept of labor and employees“Concept of labor and employees----employer relationshipemployer relationshipemployer relationshipemployer relationship
on the basis of Islamic framework”on the basis of Islamic framework”on the basis of Islamic framework”on the basis of Islamic framework”
(For the employer)
Name:
Gender:
Age:
Marital status:
Designation:
Name of the organization:
Type of the organization:
1. How much mutual reliance exists in your organization?
a) Poor b) Little c) Average d) High
2. How much emphasis does your organization give upon the relationship building
between employers and employees?
a) Never b) Seldom c) Always d) Sometime
3. What steps have you taken for employee’s welfare?
Ans:-
4. Are your employees loyal to the organization?
a) Yes b) No
5. How do you deal with the fraud and dishonest workers?
Ans:-
6. How much security does your organization give to the employees?
a) No security b) Few c) Good d) Very good
7. Have you the medical facilities for the injured employees?
a) Yes b) No
8. What steps have you taken for the career development of the workers?
Ans:-
9. Does your organization follow the rules and regulations of ILO?
a) Yes b) No
10. How do you treat with the employees in the work place?
Ans:-

24. 24
A survey onA survey onA survey onA survey on
“Concept of labor and employees“Concept of labor and employees“Concept of labor and employees“Concept of labor and employees----employer relationshipemployer relationshipemployer relationshipemployer relationship
on the basis of Islamic framework”on the basis of Islamic framework”on the basis of Islamic framework”on the basis of Islamic framework”
(For the employee)
Name:
Gender:
Age:
Marital status:
Designation:
Name of the organization:
Type of the organization:
1. To what extend do your organization provide working environment in the workplace?
a) Good b) Moderate c) Excellent d) None
2. Do you get salaries/wages in due time?
a) Yes b) No
3. Do you have agreement with the owner regarding employment?
Ans:-
4. Does your organization offer fair leave to the employees?
a) Yes b) No
5. How does your employer give work load to the workers?
Ans :-
6. How much commitment does your employer maintain with employees?
a) Nothing b) Little c) Average d)Enormous
7. How does your employer behave with employees?
Ans:-
8. Does your employer give fair judgment to the employees?
a) Yes b) No
9. Does your employer consult with employees regarding any decisions about them?
a) Yes b) No
10. What steps have your employer taken for employee’s welfare?
Ans:-