Egypt’s Dar al-Ifta explained that the ruling depends on the nature of the transportation allowance and whether it is a fixed payment or reimbursement for actual expenses.
If an employer provides a fixed transportation allowance instead of providing a vehicle to transport an employee between home and the workplace, and the employer does not require the allowance to be spent on a specific means of transportation, the employee may dispose of the money as permitted, including saving part of it.
This applies as long as the employer has not imposed a specific condition governing how the allowance must be spent.
Can an Employee Save Part of a Transportation Allowance?
An employee may save part of a fixed transportation allowance when the payment is granted as a fixed entitlement and is not tied to specific transportation expenses.
In this situation, the employee may use or save part of the allowance, provided that doing so does not violate the employment terms or regulations governing the payment.
Ruling on Transportation Allowances Based on Actual Expenses
A different ruling applies when transportation reimbursement is variable and calculated according to actual expenses incurred by the employee while carrying out work-related duties.
In this case, the employee may not claim more than the amount actually spent.
The employee is entrusted with accurately reporting expenses and may not provide inflated or false figures to obtain additional money.
Can an Employee Claim More Than the Actual Travel Cost?
An employee may not claim expenses exceeding the amount actually paid when the employer’s system is based on reimbursing genuine expenses.
If an employee reports expenses that were not actually incurred or deliberately inflates the amount to receive additional money, the employee has misrepresented the expenses and taken money without entitlement.
The employee should repent and return the money to the rightful owner through a feasible method.
What If Returning the Money at Once Is Difficult?
If returning the entire amount at one time causes serious difficulty, the employee should seek a practical way to restore the money to the employer.
The essential principle is to return money obtained without entitlement rather than treating it as personal income.
Ruling on Using Company Information for Personal Benefit
Dar al-Ifta also explained that employees are entrusted with information they receive through their work.
Accordingly, an employee should not use confidential or company-specific information for personal benefit without the company’s knowledge or authorization.
Employees are responsible for protecting what has been entrusted to them, and using workplace information outside the scope of their duties for personal gain without permission may constitute a breach of trust.
Ruling on Investing Company Funds Without Authorization
An employee may not take company funds and invest or otherwise use them for personal profit without the knowledge or authorization of the owners.
Company money may only be handled within the authority granted by the employer and according to the rules and regulations governing the workplace.
The Quran states:
“O believers! Do not betray Allah and the Messenger, nor betray your trusts knowingly.” [Al-Anfal: 27]
If an employee has benefited from company funds without authorization, the money must be returned to its rightful owner.
Employees Are Entrusted With Company Property
An employee is entrusted with the work assigned to them, as well as the tools, equipment and property provided by the employer for carrying out that work.
Therefore, company money, equipment and resources should not be used for personal purposes unless the employer has authorized such use or the applicable workplace rules expressly permit it.
The key distinction is between a fixed allowance that belongs to the employee and reimbursement that is tied to actual expenses. In all cases, employees should comply with workplace conditions and avoid using entrusted resources for unauthorized personal benefit.
Can an employee save part of a transportation allowance?
Yes, if the allowance is fixed, is not tied to actual transportation expenses or a specific means of transport, and the employer has not restricted how it may be used.
Can an employee claim more than the actual transportation expenses?
No, when the allowance is based on reimbursement of actual expenses. The employee is responsible for reporting the amount genuinely spent.
Can an employee use company information for personal benefit?
An employee should not use company information obtained through their work for personal benefit without the company’s knowledge or authorization.
Can an employee invest company funds without permission?
No. Company funds may not be invested or used for personal profit without authorization from the employer or rightful owner.
Can employees use workplace equipment for personal purposes?
Workplace equipment should be used for assigned duties unless personal use has been authorized or is expressly permitted by the applicable workplace rules.
