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B-191977(JAB) 1 (1981-03-09)

handle is hein.gao/gaobabjzf0001 and id is 1 raw text is: /7)-7-27 GAO United States General Accounting Office Office of Washington, DC 20548 General Counsel .4 In Reply Referto: B-191977 (Z ~/' 7arch 9, 1081 4 Margery Waxman, General Counsel office of Personnel Management Washington, D.C. 20415 Dear Ms. Waxman: This is in response to your request for clarifica- tion of Victor M. Valdez, 58 Comp. Geri. 734 (B-191977, August 17, 1979). In that, decision we held that when it is discovered that an employee has been erroneously appointed, he is entitled to his unpaid compensation and to credit for good faith service for purposes of accrual of annual leave and payment of lump-sum annual leave upon separation, unless (1) the appointment was made in violation of an absolute statutory prohibition or (2) the employee was guilty of fraud or deliberately misrepresented or falsified a material matter.- j In our prior cases, an employee's entitlements depended on whether his appointment was void or void- able. Where an appointment was void but the inva- lidity did not result from an absolute statutory bar and there was a legally authorized and existing posi- tion, we considered the employee to be a de facto .A employee, entitled to retain compensation already re- ceived. In 52 Comp. Gen. 700 (1973),'.we extended our de facto rule to permit payment for the reasonable value of services to persons who served in good faith so as to allow such persons reimbursement for unpaid compensation. On the other hand when an employee served under a voidable appointment, we held that the de facto rule was not involved and he was entitled to earned compensation and all employee benefits in- cluding service credit.

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