"SARS can confirm that the unfair labour practice dispute with regard to the suspension on 5 December 2014 was amicably resolved through conciliation at the Commission for Conciliation, Mediation and Arbitration (CCMA)," said SARS in a statement on Wednesday, 28 January.
Pillay was suspended after he was implicated in the findings of an investigation into claims of a rogue spy unit within SARS.
The December 2014 suspension was set aside by the Labour Court, however SARS said the CCMA resolution has no effect on his second suspension.
"Today's CCMA resolution has no effect on Mr Pillay's suspension of 21 January 2015 which is still effective pending an investigation into allegations of gross misconduct, acts of impropriety and bringing the organisation's name and reputation into disrepute. SARS advises that the aforesaid investigation is at an advanced stage," explained the revenue service.
The 21 January 2015 suspension was made after affording Pillay a reasonable and fair opportunity from the 19 December 2014 until 16 January 2015 to provide reasons as to why he should not be suspended.
"In this regard, SARS hereby unequivocally state that Pillay's suspension of 21 January 2015 is still effective despite today's CCMA resolution."
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