Islamic Finance Law from A-Z

Rendering a service against reward; literally, wages, pay, stipend or reward for a job. Legally, it refers to doing any job or providing any service for achieving an objective which is not sure to be achieved for someone against a prize, fee or commission. Achievement of the end result is necessary for entitlement to the fee or prize. The determination of the required end result of the transaction is considered to be sufficient to make it permissible. Ju‘alah is a relevant and useful transaction in events that cannot be accomplished through Ijarah, such as bringing back lost property from an uncertain location, because an Ijarah contract requires that the work and the wage must be known and specified without any hazard.