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Corporations and Partnerships with Respect to Ribbit: Difference between revisions

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====Wages for an Iska Worker====
====Wages for an Iska Worker====
=====Fixed Wages=====
# If they stipulate in advance it is sufficient to pay the iska agent a small wage.<ref>Shulchan Aruch Y.D. 177:3</ref> Some hold that any amount above a [[pruta]] is sufficient, while others hold that it is a [[dinar]], which is closer to $3.<ref>Chelkat Binyamin 177:55 cits that the Birkei Yosef holds that a dinar is necessary while the Prisha, Bet Meir, and Chavot Daat think that it could be less than a dinar.</ref> Some say that it must be an amount that is recognizably a wage and not a token payment.<ref>Bet Yosef 177:2 citing Smag, Chelkat Binyamin 177:55 citing Darkei Teshuva from Bet Dovid</ref> The common practice is to give $1.<ref>Igrot Moshe 3:39, Chelkat Binyamin 177:55, [http://bethdin.org/wp-content/uploads/2015/07/ShtarIska.pdf Heter Iska of the Bet Din of America], [https://www.star-k.org/images/db//hetter-iska.pdf Heter Iska of Star-K]</ref>
# If they stipulate in advance it is sufficient to pay the iska agent a small wage.<ref>Shulchan Aruch Y.D. 177:3</ref> Some hold that any amount above a [[pruta]] is sufficient, while others hold that it is a [[dinar]], which is closer to $3.<ref>Chelkat Binyamin 177:55 cits that the Birkei Yosef holds that a dinar is necessary while the Prisha, Bet Meir, and Chavot Daat think that it could be less than a dinar.</ref> Some say that it must be an amount that is recognizably a wage and not a token payment.<ref>Bet Yosef 177:2 citing Smag, Chelkat Binyamin 177:55 citing Darkei Teshuva from Bet Dovid</ref> The common practice is to give $1.<ref>Igrot Moshe 3:39, Chelkat Binyamin 177:55, [http://bethdin.org/wp-content/uploads/2015/07/ShtarIska.pdf Heter Iska of the Bet Din of America], [https://www.star-k.org/images/db//hetter-iska.pdf Heter Iska of Star-K]</ref>
#The wages are first taken from the profits and then the rest is split according to their stipulation such as splitting it evenly. If there are no profits the wages are first taken from the capital and then considering that there is now insufficient funds to return the capital it is considered a loss. Therefore, the terms and conditions for losses and the percentages that they stipulated to accept for losses apply to the amount of the wages.<ref>Shach 177:53, Shulchan Aruch Y.D. 177:28</ref>
=====Paid by Commission=====
# If one stipulates that the agent only needs to give a certain amount of profits to the investor and all other profits are waived and given to the agent this can be considered wages for the agent.<ref>Shach 177:9, Chelka Binyamin (Kuntres Heter Iska n. 8) based on Rambam Sheluchin Vshutfin 6:4. See also Shulchan Aruch Y.D. 177:3.</ref> However, it must be stipulated that these are wages for his work and not simply that the investor waives his rights to them.<ref>Chelkat Binyamin 177:54 citing Chavot Daat</ref>
# If they stipulate that the agent can keep the greater percent of gains than he accepts of the losses and it turns out that there are no gains then he doesn't receive any wage. It isn't considered interest since his wage was the opportunity he had to make money had he made gains.<ref>Shulchan Aruch Y.D. 177:28</ref>
=====Other Benefits=====
# Some say that if there's a benefit that the agent has in fact that because he has more money from the iska it isn't necessary to pay him. That is, an iska is essentially a part loan and part investment and the part that is a loan belongs to the agent. If the agent would not have been able to invest his loan loan without the extra money of the investment part, such as with half of the money he doesn't meet a certain type of investment vehicle threshold, then the fact that he has a complete iska with the investment part as well is considered his wages.<ref>Taz 177:9</ref> Most others disagree.<ref>Chelkat Binyamin 177:28 based on Chavot Daat, Shaarei Deah, and Sherit Chaim</ref>
# Some say that if there's a benefit that the agent has in fact that because he has more money from the iska it isn't necessary to pay him. That is, an iska is essentially a part loan and part investment and the part that is a loan belongs to the agent. If the agent would not have been able to invest his loan loan without the extra money of the investment part, such as with half of the money he doesn't meet a certain type of investment vehicle threshold, then the fact that he has a complete iska with the investment part as well is considered his wages.<ref>Taz 177:9</ref> Most others disagree.<ref>Chelkat Binyamin 177:28 based on Chavot Daat, Shaarei Deah, and Sherit Chaim</ref>
# If one stipulates that the agent only needs to give a certain amount of profits to the investor and all other profits are waived and given to the agent this can be considered wages for the agent.<ref>Shach 177:9, Chelka Binyamin (Kuntres Heter Iska n. 8) based on Rambam Sheluchin Vshutfin 6:4. See also Shulchan Aruch Y.D. 177:3.</ref> However, it must be stipulated that these are wages for his work and not simply that the investor waives his rights to them.<ref>Chelkat Binyamin 177:54 citing Chavot Daat</ref>
 
====When Wages are Not Specified====
====When Wages are Not Specified====
# If the investor didn't specify in advance the wage of the agent, the iska worker, he must pay him the minimum price a worker. In fact halacha defines this wage to be ascertained by asking a person how much would they take as a salary not to have to work at all. This price would vary depending on their job.<ref>Chelkat Binyamin 177:31 and Milvah Hashem 2:12:4 follow the opinion of Tosfot either because Shulchan Aruch didn't clarify and we can be lenient since it is only rabbinic or because it is the simplest explanation in the words of Shulchan Aruch and the Bet Yosef elaborated upon that opinion. Chavot Daat 177:3 also holds like that opinion.</ref>
# If the investor didn't specify in advance the wage of the agent, the iska worker, he must pay him the minimum price a worker. In fact halacha defines this wage to be ascertained by asking a person how much would they take as a salary not to have to work at all. This price would vary depending on their job.<ref>Chelkat Binyamin 177:31 and Milvah Hashem 2:12:4 follow the opinion of Tosfot either because Shulchan Aruch didn't clarify and we can be lenient since it is only rabbinic or because it is the simplest explanation in the words of Shulchan Aruch and the Bet Yosef elaborated upon that opinion. Chavot Daat 177:3 also holds like that opinion.</ref>
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