Worker's Compensation

By Mufti Ebrahim Desai
Posted: 3 Jamad-ul-Awwal 1423, 14 July 2002

Q.) My name is Ali ibn Abdul Rahman Sowaid. I live in Sydney, Australia. I am writing on behalf of another brother in Islam. He is concerned with the following issue:

His wife suffered a back injury at work after slipping and hitting the floor. Consequently she is unable to continue with her work. Under Australian law she is entitled to compensation. Meaning that the employer pays her the money that she would have earned if she was still able to work. Thus, pain and suffering, and the cause of financial distress (including the cost of medicine and lost wages) are tallied and she is given that amount in money.

She was offered a settlement of money, however there solicitor said that they are being routed and that they should go to the law courts. Workers compensations takes two forms, they offer a settlement outside of court (first option) and the person claiming the compensation can take it or they can turn to the courts were the judge will decide the amount of money to be paid out. (second option)

What we need to Know is whether it is against the teachings of Islam to take workers compensations? Also should we take the first offer or is OK to go to court? May Allah, the Great reward you.

A.) If the employer and employee are bound by the worker's compensation agreement in their contractual agreement, the employee may use that facility to claim for losses due to injuries. The person may choose any route, settlement out of court or even go to court. And Allah Ta'ala Knows Best