Glasgow City Council has agreed to pause plans to fire and rehire more than 23,000 members of staff.
The decision follows online talks between the council and three trade unions, chaired by Deputy First Minister Jenny Gilruth.
Negotiations between the council and the GMB, Unison and Unite unions will resume early next week to try to reach a new deal on pay.
Letters which had been due to be sent to staff informing them of the fire and rehire plans will not be issued.
The SNP-led council had threatened to sack thousands of members of staff and then rehire them on new contracts after negotiations with unions over equal pay proposals broke down.
The talks were about the council’s plans to replace a pay system found to discriminate against mostly women workers. The changes would see the majority of staff unaffected or better off, but they would cut pay for 11% of staff.
Gilruth said the Scottish government did not support fire and rehire schemes and had urged the council and trade unions to get back around the negotiating table.
She said: “Given the significance of this situation and the impact on staff, I wanted to bring all parties together to make clear that I expect negotiations between the council and unions to continue so that a collective agreement can be reached and bring an end to discriminatory pay practices.
“My expectation is that all parties act in line with the principles of fair work and continue to exhaust all avenues for collective agreement.”
On behalf of unions Unite, Unison and GMB, the Scottish Trades Unions Congress said: “We are pleased at the lifting of the threat of fire and rehire and that meaningful negotiations will take place next week.
“We also welcome the Scottish government’s clear statement that the practice of fire and rehire’ does not align with the principles and expected practice of fair work.”
