SARS has dropped its opposition to the reinstatement of two staff members axed in 2017 for refusing to take part in the company's restructuring process.

Former employees Hope Mashilo and Tshebeletso Seremane have been asked to return to the tax agency ‘at their earliest availability’, roughly five years after they were dismissed, a Fin24 report says.

The decision comes 10 days after SARS publicly apologised and paid compensation to a dozen former staff members hounded out of the agency during the era of state capture.

SARS axed Mashilo and Seremane in 2017 for refusing to move to vaguely defined new jobs called ‘domain specialists’ established as part of a controversial restructuring proposed by consultancy Bain.

SARS Commissioner Edward Kieswetter acknowledged this week that the agency's actions five years ago had a ‘devastating and profound impact on the lives of Ms Mashilo and Ms Seremane and their families’.

‘SARS deeply regrets the hurt, pain and suffering visited on them and their families,’ he said.

The decision to reinstate Mashilo and Seremane is an about-turn for SARS, which previously argued in court that the two should not be reinstated. But the Johannesburg Labour Court twice found in favour of the two former employees.

In October, the court dismissed SARS' application for leave to appeal an earlier ruling ordering that Mashilo and Seremane be immediately reinstated.

Acting Labour Court Judge Smanga Sethene ruled that SARS provided ‘no compelling grounds’ for why they shouldn't return, describing parts of SARS' appeal bid as ‘startling and comical’.

Kieswetter, meanwhile, denied that the agency's past opposition to the reinstatement of the two employees meant he supported the actions taken by his predecessor, Tom Moyane.

Full Fin24 report