The Two Types of Ijarah
Ijarah ‘ala al-A’yan (asset rental): one party transfers the right to use (manfa’a) an asset to another party for a specified period and consideration. The ownership of the asset remains with the lessor; only the benefit transfers. Examples: house rental, land lease, vehicle hire.
Requirements:
- Asset must be capable of delivering benefit without being consumed in use (distinguishing it from sale of a consumable)
- The benefit must be lawful
- Duration and rent must be specified
Ijarah ‘ala al-Amal (labor hire): one party hires another’s services for a task or period. The skilled artisan, doctor, teacher, or day laborer all operate under this contract.
Requirements:
- The work must be specified (either by description or outcome)
- The wage must be specified
- The work must be lawful
The Worker’s Rights
The Prophet: “Give the worker his wage before his sweat dries.” (A’tu al-ajira ajrahu qabla an yajiffa ‘arquh.)
Islamic labor law arising from this hadith:
- Prompt payment: wages are due upon completion of the task or at the agreed interval — not to be delayed without consent
- Specified wages: a contract with unspecified wages is invalid; the worker is entitled to prevailing market rate (ajr al-mithl) in that case
- Right to refuse unsafe work: scholars discuss the worker’s right to decline work that would harm them disproportionately
- No double-bearing of risk: if the asset is destroyed without negligence during the rental, the lessor cannot charge rent for the period the asset was unusable
The Ijarah Muntahia Bil-Tamlik (Hire-Purchase)
A contemporary Islamic finance structure used extensively in Bohra and Ismaili community institutions: the lessor hires the asset to the lessee with an agreement that ownership transfers at the end of the rental period (either by gift or final purchase). This structure allows property financing without riba (interest).
See also: Fiqh Al Wasiyyah, Fiqh Al Mawarith, Fiqh Al Sadaqa, Waqf, Understanding Walayah, Dai Al Mutlaq