Liable Fixed Wages
প্রশ্ন · Question
Assalamu alaikum, who bears the difference in currency if the debtor
delayed the repayment of the debt to the creditor without excuse for
ten years, for example, whether the debt is a wage or loan?
উত্তর · Answer
Wa Alaikum Assalam wa Rahmatullahi wa Barakatuh, liable fixed
wages is like a debt, whoever owes a debt to another person, he must
fulfil it according to the terms agreed between themselves. If the
debtor delays in the payment of the debt, then it is considered: If he is
in hardship, the creditor must respite him until his financial conditions
improve and he is able to repay the debt, as the Almighty said,
((وَإِنْ كَانَ ذُو عُشَّْةٍ فَنَظِرَةٌ إِلََ مَيْشََّةٍ ))
And if someone is in hardship, then [let there be] postponement
until [a time of] ease." [Al-Baqara: 280]
But if the debtor is capable to fulfil his debt but refrains from paying it,
he is forced to fulfil the debt, and if he does not then he would be
punished, according to what Abu Dawood and Ibn Majah narrated
from 'Amr bin Sharid from his father that the Messenger of Allah ﷺ
said:
«يُّ الْوَاجِدِ يُحِلُّ عِرْضَهُ وَعُقُوبَتَهُ
لََ»
"If one who can afford it delays repayment, his honor and
punishment become permissible". The meaning of "Lai Alwajd" in the
Hadith is any procrastination of the rich, the meaning of his honor is
permissible is to complain of him and rebuke him verbally, and the
meaning of his punishment is his imprisonment and detention.
As for the currency difference, i.e. if its value dropped or increased
compared to gold and silver during transactions in the market; does
the creditor or debtor bear the difference... There are different views
for this issue, and the preponderant view for me is that the repayment
of the debt should be with the same currency and the same amount,
which has been proved in the liabilities in order to avoid usury (Riba)
when taking increased amount. This is as long as the currency is in
circulation and is officially recognized by the body that issued it.
And if the creditor wants to save his money from decrease, then let
him lend it in gold or a strong currency that retains its value...
And we ask Allah to honor this Ummah with the establishment of the
Khilafah "Caliphate" Rashidah, so the currency will be in gold and
silver, carrying its value within itself. So that the financial life stabilizes
and people enjoy in their lives and secure their money, and Allah
Almighty is Powerful and Exalted in Might.
Your brother,
Abu Yasin