IJARAH

NURULHUDA BINTI ISMAIL

NORASMANIZA BINTI SAMAT

NURHIDAYU BINTI ABDUL RAHIM

NURAFIYA BINTI ABDULLA

NURUL ATIKA BINTI MOHD ANUAR

Content Definition Basic principles

Pillars & condition Rules in hiring Law of Ijarah Payment of wages & rents Responsibility salary & wages Goods renting a rental Termination of Ijarah Ijarah return

Syari’ah rules Illustration Party involve Key issues

Rental payment based on interest Penalty interest default Insurance and maintenance issue Shari’a board issue Registration of ownership Master agreement

Definition Istilah- بيع المنفعة it means 'to give something on rent'. the term 'Ijarah' is used for two different

situationsI. relates to the usufructs of assets and

propertiesII. Services of human beings

Ulama Hanafiyah : ‘aqdun ‘alal manaafi’i bi ‘audhin,”

Ulama Syafi’iyah : “Akad of the benefit that contain a

particular purpose and able to receive a replacement or certain substitute”

(Muhammad asy-Syarbini, Mughni al-Muhtaj, Juz 2, hal. 332)

Ulama Malikiyah “Menjadikan milik suatu kemanfaatan

yang mubah dalam waktu tertentu dengan pengganti”.

Basic Principles: Pillars & Condition Mu’jir & musta’jir :-

Ulama hanafiah aqid can think rationally and mumaiyyiz

Ulama malikiyah baligh and should ask permitted from

parents Ulama hanabilah dan syafi’iyah

aqid should mukallaf

Ijab kabul Ujrah (payment)

payment in terms fixed asset know by both parties

payment that same as Ma’qud ‘alaih is not allowed

pay according the agreement

Ma’qud ‘alaih (object/benefit) Objects is possession by lessor Given after akad Objects specification must be

clearly stated Stated of duration of utilization Utilization ijarah objects should be

not forbidden by shariah No reject objects

return the object ijarah if unable to pay rent

maintain and use the appropriate object in the agreed ijarah

not sublease and / or transfer ijarah object to other parties

Basic Principles: Rules In Hiringo Explaination types of jobso Explanation about work houro Can’t rent other person to do his/her

compulsory tasko No discrimination/ make use the workers

Basic Principles: Law Of Ijarah

Lease law Wage-hiring law

Basic Principles: Payment Of Wages & Rents

The right to receive wages musta'jir is as follows:

"Give the employee the wages before the sweat dries." (Narrated by Ibn Majah)

If renting goods, money paid when the contract hire rental happen

Basic Principles: Responsibility of the Employees

Maliki When the nature of the job imprint on goods any

damage is the responsibility of the employee. Abu Yusuf & Muhammad bin Hasan asy-

Syaibani Worker was partially responsible for the damage,

whether intentional or not unless there is something beyond boundary occur.

Imam Abu Hanifah dan Syafi’I If the damage was not due to foul play and

negligence of the employee's compensation is not required.

Basic Principles: Goods Renting A Rental (menyewakan barang sewaan)

Musta'jir enabled sublease rental items to others in terms of use of the goods in accordance with the use of the promised when the contract.

Basic Principles: Termination Of Ijarah Ijarah be fasakh (void) if there is the following:

The occurrence of defects in the leased goods that occurs on the hands musta'jir

The destruction of the leased item Damaged goods is renting back (ma'jur alaih) The expiration of the prescribed period and the

completion of the work

Basic Principles: Ijarah Return If ijarah has ended, musta'jir need to return

the rental items. If can be transferred, it must hand over to the

owner and if the form of rental is' iqar (fixed).

Party Involve Two parties involve in Ijara :

A lessor(the owner of the leased asset) A lessee(the party who reaps the services of the

leased asset) Ownership right

Ownership liabilities & usage liabilities Leased asset as a trust Impairment lost not cost by the lessee Operation maintenance Can’t transfer to third party without permission from

lessor

Illustration

1. Identify the machine/

goods.

2. The bank buy the

equipment from the dealer

3. The bank gives lease of machinery / equipment to the

customer at an agreed monthly price for a specified period

4. the customer pays a monthly

lease

5. The customer returns the machine /

equipment at the expiration date.

Bank

Machine/ equipment

Customer

Syari’a Rules In Ijarah• And said one of them (the two women): "O my

father! Hire him! Verily, the best of men for you to hire is the strong, the trustworthy”.

• The Prophet (SAW) said: "Pay the hired worker his wages before his sweat dries off". (Sunan Ibn Majah)

Syari’a Rules In Ijarah • The Prophet (SAW) is reported to have said:

"He who hires a person should inform him of his fee.” (Al-Sunan Al-Kubra li Al-Baihaqi)

• Abdullah ibn Umar narrates, “Allah's Apostle gave the land of Khaibar to the Jews to work on and cultivate and take half of its yield.” Ibn 'Umar added, "The land was used to be rented for a certain portion (of its yield)." (Sahih Al-Bukhari)

Syari’a Rules In Ijarah • The Prophet (SAW) is reported to have said:

"He who hires a person should inform him of his fee.” (Al-Sunan Al-Kubra li Al-Baihaqi)

• Abdullah ibn Umar narrates, “Allah's Apostle gave the land of Khaibar to the Jews to work on and cultivate and take half of its yield.” Ibn 'Umar added, "The land was used to be rented for a certain portion (of its yield)." (Sahih Al-Bukhari)

Key Issue: Rental Payment Based On Interest

Lease rental could not be directly expressed by referrence to interest rates

In leasing transactions the lessor is providing an asset

In an Ijara lease the amount and timing of the lease payments should be agreed in advance

Key Issue: Penalty Interest Default Western conventional leases- provide for

default interest on late payment Islamic leases- providing some form of

discount formula

Key Issue: Insurance and maintenance issue

In an Ijara lease the responsibility for maintaining and insuring the leased asset remains that of the lessor throughout

Maintenance obligations

Key Issue: Shari’a Board Issue Role of the shari’a board

To monitor the workings of the Islamic financing institution

Key Issue: Registration of ownership Leased asset is registered in the name of

lessor If there are barriers, maybe registered in the

name of the leassee

Key Issue: Master agreement This agreement detailing the term & condition Master agreement is considered as wa’d

(promise)