It is said that the Jew Labeed ibn al-A’sam was able to able to obtain something from the Prophet (peace and blessings of Allaah be upon him) [for the purpose of witchcraft] by the help of a Jewish slave woman who used to enter the houses of the Prophet (peace and blessings of Allaah be upon him). Does this mean that it is permissible to employ the services of Jews?
What is the meaning of the expulsion of the Jews as narrated in the ahaadeeth? I hope that you could explain the presence of the Jews in Madeenah, as it is narrated that the Prophet (peace and blessings of Allaah be upon him) expelled them from the city?
The Jews have no right to enter the Arabian Peninsula
Question: 22633
Praise be to Allah, and peace and blessings be upon the Messenger of Allah and his family.
The Prophet (peace and blessings of Allaah be upon him) commanded that the Jews be expelled from the Arabian Peninsula, and said that no two religions should co-exist in the Arabian Peninsula. This is a shar’i ruling. It is not permissible for any mushrik to remain there. With regard to the presence of the Jews in Madeenah, Khaybar, etc., this was before the command to expel them, as is well known. The command to expel them came during the final illness of the Prophet (peace and blessings of Allaah be upon him), then ‘Umar (may Allaah be pleased with him) expelled them after that.
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Source:
Shaykh ‘Abd al-Kareem al-Khudayr