Is it permissible to combine partnership (shirka) and profit-sharing partnership (mudarabah) when one party contributes both capital and labor?

Primary text

It is valid to combine partnership and mudaraba where one party contributes capital and labor while the other contributes capital only. If two men have three thousand dirhams, one with a thousand and the other with two thousand, and the owner of the two thousand permits the owner of the thousand to deal with it such that the profit is split equally between them, the transaction is valid. In this case, the owner of the thousand receives one-third of the profit due to the value of his capital, and the remaining two-thirds profit is distributed between them: the owner of the two thousand receives three-fourths of that remainder, and the working partner receives one-fourth. This is because the agreement designated half the profit for the worker; setting this total profit into six shares, three go to the worker—two shares representing his capital contribution and one share earned by his labor regarding his partner's capital. The partner's capital is allocated four shares, of which the worker receives one, equaling one-fourth of the total profit.