Sharia Compliance in Wadiah Contract Innovation: An analysis of Bonus Practices and The Substantive Shift from Tabarru' to Commercial Orientation

Abstract

This study is motivated by the growing innovation of contracts in Islamic financial institutions, particularly wadiah-based products that have undergone practical transformation in response to modern market demands. This research aims to critically examine Sharia compliance in wadiah contract innovation, particularly recurring bonus distribution practices and their implications for the substantive transformation of wadiah from a trust-based (tabarru’) contract toward a more commercially oriented mechanism. Unlike previous studies that mainly focus on formal contractual compliance, this study highlights the ethical dimensions, customer perceptions, and maqāṣid al-sharī‘ah implications of wadiah innovation. Using a qualitative approach and library research method, this study examines academic literature, fatwas, and empirical studies related to the implementation of wadiah in Islamic financial institutions. The findings indicate that innovation in wadiah contracts, especially in the form of wadiah yad dhamanah, has shifted the contract from its original character as a tabarru’ or non-commercial contract toward a more commercial orientation. This shift is reflected in the repeated provision of bonuses, which may shape customer expectations of financial returns. Substantively, this condition has the potential to obscure the original essence of wadiah and create inconsistencies with the objectives of maqāṣid al-sharī‘ah, particularly in terms of transparency and fairness. Therefore, this study emphasizes that Sharia compliance should not be assessed solely from a legal-formal perspective, but should also include ethical considerations and the objectives of Islamic law. The study highlights the importance of strengthening Sharia supervision, improving product transparency, and enhancing customer education to preserve the integrity of contracts in Islamic financial practices.