Is it permissible to demand financial civil compensation for material and psychological damages and defamation, after lab analyses cleared a case of inspection by the police and the placement of a water bottle suspected of being alcohol, which led to suspension from work?

Contemporary scholars differed regarding the permissibility of receiving financial compensation for moral damage, with most of them prohibiting it. The Islamic Fiqh Academy affirmed this. As for the earlier scholars, no statements from them on this issue have been found, but it was reported that some of them prohibited reconciliation between the slanderer and the slandered for money. However, regarding financial damage, it is permissible to seek compensation for it, and this includes actual financial damage and confirmed lost earnings. Psychological harm falls under moral damage.