Business Partnerships Between Jews and Non-Jews
The Shulchan Aruch rules that it is permitted for a Jew and a non-Jew to form a business partnership if they stipulate at the outset that the Shabbos work is totally under the non-Jew’s jurisdiction, i.e., that only he is responsible for the work on Shabbos and that he is the sole recipient of that day’s profits. In compensation, the Jewish partner will receive the profits of a corresponding weekday. Entering into such an agreement is permitted even l’chatchilah, as long as the details are recorded in a contract form and not made merely as a verbal agreement between the parties.[1]
Mishnah Berurah (note 6) adds that if at the end of the accounting period they are unable – or unwilling – to determine the respective profits and losses of each day, they may divide the profits and losses equally. It is important to stress that this leniency may be relied upon only in the exact situation described by Mishnah Berurah – that they were unable or unwilling to determine the daily profits when the time for accounting came. But if the business was set up in a manner in which it would be impossible to determine the profits and losses of each day, then it is evident that the entire agreement is a hoax and is not valid.[2]
A slightly different type of partnership permitted l’chatchilah, mentioned by Rama, is based on the principle that the non-Jewish partner carries no obligation to work on Shabbos. He may still elect, of his own free will, to work on Shabbos anyway. Once he does so, it is permitted for his Jewish partner to take an even share of the profits. This holds true even if the non-Jewish partner understands that the Jew will be displeased if he fails to work on Shabbos and might even break off the agreement. As long as he is not contractually obligated to work, it is permitted.[3]
But this type of partnership arrangement is only allowed if the non-Jewish partner does the work himself. If, however, a third-party non-Jewish employee is hired to do the work on Shabbos, and is paid with the joint funds of the partnership, he would essentially be working for the Jew as well. This is forbidden, unless the same employee who normally works during the week would work on Shabbos as well, and would not suffer a cut in his salary were he to refrain from working on Shabbos.[4]
One additional note: When a Jew and a non-Jew use one of the above partnerships agreements so that the business could remain open on Shabbos, it is important to make sure that the Jewish community is aware that the business is owned – at least partially – by a non-Jew. If the community is not aware of the non-Jew’s stake in the business, it is forbidden to rely on this arrangement for Shabbos.[5]
[1] Igros Moshe, O.C. 1:90.
[2] Igros Moshe, O.C. 1:90; 2:65. See Cheshev ha’Eifod 2:6 for a dissenting opinion.
[3] Igros Moshe, O.C. 1:90.
[4]Igros Moshe, O.C. 2:65; Shevet ha-Levi 5:26.
[5] Koveitz Teshuvos 3:37; Shevet ha-Levi 3:23. See Mishnah Berurah 245:10 and 15.