Splitting Commission Earned

In the enquired scenario, if this fixed percentage was mutually agreed upon as a commission for Zaid on the basis of initially introducing Bakr to the company, it would be permissible for Zaid to receive this commission. If Bakr thereafter transacts with the company on his own, then Zaid will not be entitled to any commission on the subsequent transactions for which Bakr makes an effort and does all the work.

However, if they both mutually agreed that Zaid would get 40% of the commission on every subsequent transaction that is concluded with the company, then it will be permissible for Bakr to give Zaid (as a gift) the agreed percentage of commission and for Zaid to accept it. But this will be dependent on mutual agreement, with Bakr willingly accepting such an arrangement and the 40% of the commission given to Zaid upon every subsequent transaction will be considered to be a gift from Bakr to Zaid and not an entitlement, because Zaid cannot be entitled to receive payment for work that he did not do. Bakr will be working and making all the effort in concluding all subsequent transactions and not Zaid. Since seeing that this is a gift, whenever Bakr wishes he can terminate giving this 40% gift and Zaid cannot then demand it from him.

One other method that we would suggest is that Zaid should continue placing orders by himself and thereafter he should hire Bakr to sell the products to retail outlets in lieu of a commission in the form of a fixed percentage or a fixed amount. In this way, each time Bakr sells the products to the retail outlets, he will be entitled (as a commission agent/employee of Zaid) to the agreed upon commission (whether it be a fixed amount or a fixed percentage).