Praise be to Allaah.
What some companies give to their employees of accommodation
to live in falls into two categories:
The right to use it and benefit
from it belongs to the employee, so he has the right to live in the house or
to rent it out to someone else or to rent out part of it. The basic
principle concerning that is that the one who has the right to use something
is permitted to benefit from it himself or to let someone else benefit from
it who will use it in the same manner.
Where there is permission to
live in it only, and he does not have the right to make use of it. In that
case the employee does not have the right to rent out the house or part of
it. This is like the accommodation that is provided by the university to its
students; they have the right to make live in it but they do not possess the
right to benefit from it, and if a student does not need the accommodation
he does not have the right to rent it out to someone else.
Based on that, if neither of the two possibilities is stated
in the contract, then it is essential to ask the company. If they allow him
to rent out the accommodation or to let someone else live with him, then
there is nothing wrong with it; but if they do not allow that, then you do
not have the right to let someone else live with you.
The scholars of the Standing Committee for Issuing Fatwas
were asked: Most of the companies allow employees some benefits, one of
which is that the company will give the employee the choice between taking
accommodation to live in with his family or an equivalent amount of cash,
which accompanies call the accommodation allowance. The company system
prevents use of the accommodation except by the employee himself. It has
become common among employees who get accommodation to rent out the
accommodation to people who do not work for the company. What is the ruling
on this money in this case; is it halaal or haraam wealth? We hope that you
can explain the matter because it happens a great deal. May Allaah bless
you. Please note that this action is against company rules and may result in
If the company system states that the accommodation is only
for the employee himself to live in and that he does not have the right to
rent it out to others, and he has agreed to that, then it is not permissible
for the one who takes accommodation from the company to rent it out to
someone else, because this is contrary to the conditions stipulated between
the employee and the company. And Allaah is the source of strength. May
Allaah send blessings and peace upon our Prophet Muhammad and his family and
Companions. End quote.
Fataawa al-Lajnah al-Daa’imah,
And Allaah knows best.