One old trick is using parser for this purpose:
postgres=# select e'Telefon\u00ED kontakty';
?column?
-------------------
Telefoní kontakty
(1 row)
CREATE OR REPLACE FUNCTION public.unescape(text)
RETURNS text
LANGUAGE plpgsql
AS $function$
DECLARE result text;
BEGIN
EXECUTE format('SELECT e''%s''', $1) INTO result;
RETURN result;
END;
$function$
It works, but it is SQL injection vulnerable - so you should to sanitize input text first!
Here is less readable, but safe version - but you have to manually specify one char as escape symbol:
CREATE OR REPLACE FUNCTION public.unescape(text, text)
RETURNS text
LANGUAGE plpgsql
AS $function$
DECLARE result text;
BEGIN
EXECUTE format('SELECT U&%s UESCAPE %s',
quote_literal(replace($1, '\u','^')),
quote_literal($2)) INTO result;
RETURN result;
END;
$function$
Result
postgres=# select unescape('Odpov\u011Bdn\u00E1 osoba','^');
unescape
-----------------
Odpovědná osoba
(1 row)