Original Question: Is it halal to work under a Trade Operations department for company which export or import halal goods, however the company uses letter of credit with riba to export or import their goods?

Answer:

Working in a Trade Operations department is generally permissible when the company’s main business is lawful and your own duties relate to facilitating the import or export of halal goods. The fact that the company uses an interest-based letter of credit does not automatically make every department, employee, or salary unlawful. However, it is not permissible to directly structure, approve, draft, record, or execute the riba-based financing arrangement. The ruling therefore depends on the nature and extent of your personal involvement.

This is because of the following reasons.

Allah mentions in the Quran:

وَأَحَلَّ ٱللَّهُ ٱلْبَيْعَ وَحَرَّمَ ٱلرِّبَوٰا۟

“Allah has permitted trade and has forbidden riba.” — Surah al-Baqarah (2:275)

Riba is unequivocally prohibited. The Prophet ﷺ also cursed the one who consumes riba, the one who pays it, the one who records it, and its two witnesses, and stated that they are alike in sin (Sahih Muslim). This hadith shows that direct assistance in completing a riba transaction is itself prohibited, even where a person is not the ultimate recipient of the interest.

How this ruling is applied in this case:

1.The nature of the company

If the company’s principal activity is lawful, such as importing and exporting halal goods, working for the company is not automatically prohibited merely because it also uses a conventional financing facility. The unlawful element must be distinguished from the company’s otherwise lawful commercial activity.

2. The nature of the letter of credit

A letter of credit is not necessarily prohibited in itself. The Shariah concern arises when it contains an interest-bearing loan, financing charge, or another contractual feature amounting to riba. Administrative fees charged for genuine services are not treated in the same way as interest, provided they are not calculated as a return on the amount or duration of the financing.

3. The employee’s actual job scope

A job title such as “Trade Operations” is not sufficient by itself to determine the ruling. What matters is the work actually performed. Tasks that facilitate the lawful movement of halal goods are different from tasks that bring the interest-based financing contract into existence or enable its execution.

4. The degree of direct involvement

The closer the employee’s work is to preparing, approving, documenting, calculating, or executing the riba element, the stronger the prohibition. Remote, incidental, or unavoidable exposure is not treated in the same manner as direct and essential participation. Nevertheless, an employee should take reasonable steps to remove or reduce any involvement where possible.

Why indirect lawful work may remain permissible

Classical jurists distinguished between performing lawful work for a person or institution whose wealth may contain unlawful elements, and personally carrying out the unlawful act. Ibn Qudamah states:

وَلَوْ أَجَرَ مُسْلِمٌ نَفْسَهُ لِذِمِّيٍّ، لِعَمَلٍ فِي ذِمَّتِهِ، صَحَّ؛ لِأَنَّ عَلِيًّا، رَضِيَ اللَّهُ عَنْهُ، أَجَرَ نَفْسَهُ مِنْ يَهُودِيٍّ، يَسْتَقِي لَهُ كُلَّ دَلْوٍ بِتَمْرَةٍ، وَأَتَى بِذَلِكَ النَّبِيَّ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ فَأَكَلَهُ.

“If a Muslim hires himself out to a non-Muslim for work owed by contract, it is valid. This is because ʿAli (may Allah be pleased with him) hired himself to a Jew, drawing water for a date for each bucket, and he brought it to the Prophet ﷺ, who ate from it.”  (Al-Mughni by Ibn Qudamah)

The relevance of this passage is not that unlawful transactions are excused. Rather, it demonstrates that a worker’s income is assessed according to the specific work performed. Lawful, clearly defined labour does not become unlawful merely because the employer or wider business also has questionable dealings. By contrast, work that directly creates, records, or completes a prohibited transaction remains impermissible.

This is also consistent with the contemporary guidance of the Iftaa’ Department of Jordan concerning trading companies: roles not directly connected to prohibited activities remain permissible. The issue is therefore not mere employment within the company, but the employee’s actual contribution to the unlawful activity.

What should you do?

1. Review both your formal job description and your actual day-to-day workflow.
2. Identify whether you prepare, approve, calculate, sign, witness, record, or transmit instructions that directly give effect to the interest-bearing financing.
3. Where such duties are occasional, request that they be reassigned or separated from your role.
4. Where direct involvement is central and unavoidable, seek an internal transfer or a more permissible position.
5. If an immediate change would cause genuine and serious hardship, reduce the prohibited involvement as much as reasonably possible while actively working towards an alternative.

The Prophet pbuh mentioned:

فَإِذَا نَهَيْتُكُمْ عَنْ شَىْءٍ فَاجْتَنِبُوهُ، وَإِذَا أَمَرْتُكُمْ بِأَمْرٍ فَأْتُوا مِنْهُ مَا اسْتَطَعْتُمْ

“If I forbid you to do something, then keep away from it; and if I command you to do something, then do it as much as you can.” (Sahih al-Bukhari, 7288)

This hadith requires a person to avoid the prohibited act while also recognising that practical obligations are carried out according to one’s genuine ability and circumstances. It should not be used to normalise direct involvement in riba, but it supports a responsible transition where immediate change is genuinely difficult.

Conclusion

Your employment in Trade Operations is generally permissible if the company’s underlying trade is halal and your primary responsibilities concern lawful operational matters such as logistics, shipping, inventory, customs, or product documentation. The company’s use of an interest-based letter of credit does not, by itself, make every employee’s salary haram.

However, you should avoid the work that requires you to personally draft, approve, calculate, sign, witness, record, or execute the interest-bearing element of the letter of credit. If your involvement is indirect or incidental, take reasonable steps to minimise it. If direct involvement forms a substantial and unavoidable part of your role, you should seek reassignment or transition to a more permissible position according to your ability and circumstances.

Because Trade Operations roles differ between companies, the most accurate ruling requires reviewing your actual job description and workflow. You may therefore present these details to a qualified local scholar for a case-specific assessment.

And Allah knows best.

Key references

• The Qur’an, Surah al-Baqarah, 2:275.
• Sahih Muslim, no. 1598.
• Sahih al-Bukhari, no. 7288.
• Ibn Qudamah, Al-Mughni.
• Iftaa’ Department of Jordan, “Ruling of Islamic Law on Working for Trading Companies.