The majority of Imams — including those of the four schools of fiqh as well as others — hold the opinion that a woman is not obliged to cover her face and hands. However, a group of scholars, the majority of whom belong to the Hanbali School, teach that a woman must cover her face and hands as well.
Elaborating more on this issue, we’d like to furnish you with the following fatwa issued by Sheikh Yusuf Al-Qaradawi: “Uncovering the face and the hands is the view adopted by the majority of scholars:
We are to assert here an agreed upon fact among the Muslim scholars that is the fact that the view of the permissibility of uncovering the face and the hands before foreign men is the one adopted by the majority of the jurists from the time of the Companions, Allah be pleased with them all.
The view of the Hanafis:
In the Hanafi book of Al-Ikhtiyar, we read: “One is not allowed to look at a free woman save for her face and hands once there is no fear of sin.” Abu Hanifah is reported as including the feet in the parts to be uncovered as this is needed for everyday dealings and for being recognized by others.
The author of Al-Ikhtiyar adds: “The evidence for this is the verse that reads: ‘that they should not display their beauty and ornaments except what (must ordinarily) appear thereof.’ (An-Noor:31)” The majority of the Companions say that this refers to the place where she applies Kohl and wears ring i.e. her face and hands.
The view of the Malikis:
In his book Aqrab Al-Masaalik ila Madhhab Malik, Ad-Dardir states: “The `Awrah (parts of the body which should not be exposed before others) for a free woman before a man other than her Mahram is all her bodily parts save for her face and hands as they are not considered `Awrah.”
The view of the Shafi`yyah:
Ash-Shirazy: the author of the book ‘Al-Madhhab’ wrote: “as for a free woman, all her body is ‘Awrah save for her face and hands.” An-Nawawi adds: “to the two elbows as Allah Almighty says: ‘that they should not display their beauty and ornaments except what (must ordinarily) appear thereof’ (An-Noor:31) Ibn `Abbas says: ‘this refers to her face and hands.’
The view of the Hanbalis:
As for the view of the Hanbali school, Ibn Qudamah in his book “Al-Mughni” wrote: “According to our school a woman is allowed to uncover her face while performing prayer. She is not permitted, however, to uncover any bodily part other than her face and hands.”
Malik, Al-Awza`i and Ash-Shafi`i said: “The whole body of a woman is to be covered save for her face and hands as Ibn `Abbas is quoted as saying that the verse: “that they should not display their beauty and ornaments except what (must ordinarily) appear thereof” (An-Noor: 31) refers to the face and the hands and the Prophet (peace and blessings be upon him) forbade a woman in the state of Ihram from putting on the face cover and the gloves. Should the face and the hands be `awrah, the Prophet would have commanded their covering. Furthermore, there is a need to uncover them while managing every day dealings.
Niqab is not an obligation (fard) according to the three Imams; Abu Hanifah, Malik and Ash-Shafi`i. According to Imam Ahmad, niqab (full Hijab that covers the face and the hands) is an obligation.
In light of the above, we conclude: a Muslim woman is required to cover all her body except her face and hands, according to the majority of scholars belonging to all schools. So, a woman can act according to the opinion that best suits her.
As for the hadith you mentioned narrated to Fatimah (may Allah be pleased with her), based on our research in the Islamic sources of Hadith, we found that the hadith is narrated to Um Salamah (may Allah be pleased with her) that she said: “I was with Maymunah at the Prophet (peace and blessings be upon him) when Ibn Um Maktum was coming by, so the Prophet (peace and blessings be upon him) said: ‘Be veiled in front of him.’ I said to the Prophet (peace and blessings be upon him): Isn’t he blind, he cannot see? He (peace and blessings be upon him) replied: ‘Are you two blind? Can’t you see him?!'” This hadith is narrated by Abu Dawud, At-Tirmidhi, and others. Scholars differ on the issue of its authenticity, and the late scholar Sheikh Al-Albani said that it is a weak narration.