AAOIFI Shari'ah Standard No. 34

Hiring of Persons — practice questions

إجارة الأشخاص

21 questions in the bankMultiple choice

Sample questions from the AAOIFI Test question bank on Shari'ah Standard No. 34. Pick an answer to check it and read the explanation.

Sample questions

Question 1 of 3

Under Shari’ah Standard No. (34), how does liability for damage differ between a private employee and a shared employee?

Show answer and explanation

Correct answer: D. Clauses 4/3 to 4/6: A private employee works for and under the supervision of a single employer and may not work for others at the same time without permission; he is not responsible for damage unless due to his transgression, negligence or breach of a stipulated condition. A shared employee works for several persons and is responsible for damage to what he works on unless it is caused by an unavoidable factor. An investment agent, by contrast, is liable only for transgression or negligence.

Question 2 of 3

If a client withdraws from his pledge to hire the Institution’s services, what may the Institution deduct from the guarantee amount he paid?

Show answer and explanation

Correct answer: A. Clauses 3/1 and 3/2: A framework agreement may govern hiring between the Institution and the client, with a separate contract for each operation. The Institution may require the client who pledges to hire its services to pay a guarantee of seriousness; on withdrawal, the deduction must not exceed the actual harm caused. The amount may be held as an undisposed deposit, invested for the client through Mudarabah or investment agency, frozen in the client’s current account, or treated on contracting as a prepaid instalment (see Clause 2/3 of Shari’ah Standard No. (9)).

Question 3 of 3

An employee hired as a private employee under a one-year contract reports for work ten days after the start date specified in the contract. The parties have not agreed any compensatory period. What is the position?

Show answer and explanation

Correct answer: B. Clauses 4/7 to 4/9: The hiring contract is binding. For a private employee, the start of the hiring period must be specified, beginning at signing unless a future date is agreed (deferred hiring). If he fails to report on the specified date, he is entitled to no pay for the period between the specified and actual start dates, and the employer may terminate the contract, unless the parties agree on a compensatory period at the end of the contract.

Practise all 21 questions on Standard 34

Plus a timed mock exam, a smart mistakes bank and 1,278 questions across 59 AAOIFI Shari'ah standards.

Start practisingAbout AAOIFI Test →