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Interest-Free Loan for Employees

Reuven is getting hired .
His compensation:
x amount of dollars or shekel a week;
10 days vacation a year
use of the company car for a week
an interest-free $100,000 loan

I am having an argument with someone if this is a ribbis shayloh.

I say–the loan is compensation for the work ; ribbis requires that the work be compensation for a loan(if I lend you $100,000 ,you will come work for me[so even if I pay you a fair wage,it is tovas hana’ah….])

My disputant says–it’s the same thing-he is lending him money because he is working for him.

Answer:

You appear to be right.

Ribbis is specifically giving recompense in exchange for a loan.

If the employee were to be working for free, in exchange for receiving a loan, there would be a problem of ribis mukdemes: The employee is paying money (or work, which is the equivalent) for getting a loan. However, the employee is receiving a full salary, and the employer appears to be offering a service of a free loan to all employees.

This is fine, and there is no problem of ribis.

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1 Comment

  1. First of all, the question here is Ribis Ketzutzo, not ribis Mukdemes, because it’s set all the beginning on condition that the worker commits to the job.
    Secondly, the answer is that in fact it’s ossur Min HaTorah because the worker wouldn’t of committed to him if not for receiving the loan. It’s part of his renumeration. The ribis is his commitment to work at a discount.

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