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N.B. Rulings are given in accordance with the Hanafi school of thought

Fatwa - Travel cost reimbursement from employer

Q: "I work in an office. We are allowed some perquisites, for example Taxi Travelling Costs. If I have to travel then my company will pay me the taxi charges for the distance travelled. My question is that, if my company allows me to use the taxi facility but I use public transport (buses) and claim taxi fare from my office, is it allowed for me or is the amount Haram for me? If I sacrifice my luxury (taxi travel), and suffer hardships for travelling by bus, am I allowed to claim the taxi charges (allowed by my office)?"

A:

 

Generally a company would compensate an employee for actual costs that he has incurred to give effect to his duties. Based on this, in principle it would not be acceptable to claim the taxi fare when one has in reality incurred the cost of travelling by bus. However, if one negotiates this transparently with the company, or claiming the taxi fare is clearly allowed by the company even if one has not travelled by taxi, as a matter of company policy, then one could claim the taxi fare, even if one has travelled by bus.

NB: Such company policy should be clear and unambiguous and claiming such amount should not entail the slightest bit of deception or misrepresentation.

And Allah Ta'ala Knows Best

Mufti Shafiq Jakhura
Iftaa Department, Darul Ihsan Islamic Services Centre

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