The ruling on Employees collecting Money
Question :
A group of the teachers collect a sum of money at the end of each month from their salaries and it is given to a specific person among them. Then, the next month it is given to another person and so forth until all of them have taken their share. Some people call this a Jam'iyyah (club, organization). So, what is the ruling of the Islamic law concerning that?
Answer:
There is no harm in that. It is a loan that does not have any stipulation of increased benefit for anyone. The Senior Scholars Board looked into that and decided by a majority decision that this is permissible due to what it contains of benefit for everyone without any harm. And Allâh is the Giver of success.
Source:
Ash-Shaykh Ibn Baz
Fatawa Islamiyah, Vol. 3 Page 419
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