Partneship with a Non-Jew

Dear Rabbi, I am considering entering into a partnership with a non-Jew who will be working for the company on Shabbat. Are there any halachic guidelines on how I can make this arrangement permissible? I am eager to pursue this new venture but want to ensure it aligns with Jewish law

NOTE TO OUR READERS:   This response was provided after careful verification of specific criteria and a thorough understanding of the partnership and business practices of the particular business in question. While this information may serve as a general guideline, anyone interested in applying this advice to their specific circumstances should reach out to us directly with their detailed query. We will be happy to analyze your question and give 'be'ezrat Hashem' a solution for you as well.

This is a very important question, as it involves structuring the partnership in such a way that the non-Jewish partner can operate the business even on Shabbat without the Jewish partner being considered as violating Shabbat and Yom Tov. Below, I share an example of a partnership agreement. It is structured so that during Shabbat and Yom Tov, the company will be under the exclusive ownership of the non-Jew.

As an introduction to understanding this agreement, I would like to share with you a Halacha from Tractate Avodah Zarah 22a.

תלמוד בבלי מסכת עבודה זרה דף כב עמוד א

ישראל ועובד כוכבים שקיבלו שדה בשותפות, לא יאמר ישראל לעובד כוכבים טול חלקך בשבת ואני בחול, ואם התנו מתחלה - מותר, ואם באו לחשבון – אסור.

If a Jew and a non-Jew received a field to work on in partnership, and the labor was assigned to both of them, in return they will receive, let's say, 50 percent of the yield, which they will share between themselves. When they receive their produce in return for their work, the Jew should not say to the non-Jew, "You take the produce corresponding to your labor on Shabbat, and I will take my portion in exchange for my labor on a weekday."

Rashi explains, that this is because the work was assigned to both of them every day, and so when the Jew did not work on shabbat it is considered as the non-Jew was doing the work on his behalf.

However, the Talmud continues, that if they stipulated this condition from the beginning, “your day of work is on Shabbat, and I will work on a weekday" since the agreement was imposed before they accepted the field, it is permitted.

This is because the Jew was not imposed to work on shabbat, and therefore, all the profits from Shabbat belong exclusively to the gentile.

This Halacha is brought in the Shulchan Aruch Siman 245,1.

So far we have learned from the above that the agreement has to be set at the beginning of the partnership before any profit is earned.

Since it is difficult to estimate the exact earnings of the work of Shabbat then part of the written agreement is, that in a way of compromise the two parties can split the earnings equally. So in the end, both parties will receive the earnings corresponding to their ownership in the company.

It is important to note that this agreement is not only between the two owners of the company but also extends to the employees who work during Shabbat and Yom Tov; they will be working exclusively for the non-Jew.

-Example -

Partnership agreement with a non-Jew

This partnership agreement is made between the following individuals:

Between side: ________________________ who will be named as of now as “side A”

And side: ____________________________ who will be named as of now as “side B”

1. “Side A” possesses a fifty percent (50%) ownership in the company, and “Side B” possesses a fifty percent (50%) ownership in the company.
2. It is hereby agreed that the ownership of "Side A" in the company, shall be effective only during the weekdays and only the permissible dealings according to Jewish law. The ownership of “side B” in the company is on the days of Shabbat, Jewish festival days, Chol Hamoed, and activities forbidden by Jewish law.
   Since it is difficult to estimate the exact value of the profit that is gained on Shabbat, Jewish festival days, Chol Hamoed, and activities by Jewish law, it is therefore agreed upon by the partners in a way of compromise that the value of the profit that is gained on Shabbat, Jewish festival days, Chol Hamoed, and activities forbidden by Jewish law, shall constitute twenty percent (20%) of the total company value. This twenty percent (20%) shall be under the exclusive ownership of "Side B". Additionally, "Side B" shall hold exclusive ownership of an additional thirty percent (30%) of the company's value derived from its operations during weekdays.
3. It is agreed that the employees who work for the company during Shabbat, Yom Tov, and Chol Hamoed, will be working exclusively for “Side B” and are not considered employees of “Side A". Same too, the actions and activities forbidden by Jewish law, are exclusively done only for “side B”
4. maintenance operations and the like, should be carried out only during the weekdays, except for urgent and necessary operations that cannot be pushed off to the weekdays, which will then be taken care of by “side B”.

Tractate Avodah Zoroh 22a

Shulchan Aruch Siman 245,1.