Gloucestershire County Council and Gloucestershire Health and Care Trust say reablement services will continue as normal.
Industrial action had been planned from 17 to 31 August, but has now been called off.
A joint spokesperson said the decision followed constructive talks between the county council, UNISON and ACAS.
They said the outcome reflected a shared commitment to finding a positive way forward and supporting staff.
The Community Reablement Service will continue to be led by the county council from 1 September, working with specialist community reablement providers.
