Is money earned from working in a government job that oversees collecting rents from dwellings that the state has seized by law from their owners without their consent or adequate compensation permissible or forbidden? And is the state entitled to do that?

The Sharia (definition) has prohibited the unlawful acquisition of people's wealth, such as through theft, usurpation, and gambling. This is based on the Almighty's saying: (O you who have believed, do not consume one another’s wealth unjustly but only [in lawful] business by mutual consent). The Prophet, may Allah’s prayers and peace be upon him, warned that whoever unlawfully takes a handspan of land will have it encircled around his neck down to seven earths on the Day of Resurrection. He emphasized the sanctity of wealth and honor. This prohibition includes individuals and rulers. A Muslim must reject any rule that does not align with what Allah has revealed, and it is forbidden for him to assist in it in any way, such as residing in usurped dwellings or working to collect their rents.