The South African Municipal Workers Union ( Samwu) says its striking members at the Rand West City Local Municipality, west of Johannesburg, will return to work on Tuesday.
This comes after the municipality obtained a court interdict ordering the workers to return to work.
Earlier, municipal manager Themba Goba announced that more than 700 striking employees would be receiving letters of dismissal for what he described as an illegal strike.
However, Samwu Secretary General Koena Ramotlou says employees have not received letters of dismissal.
The municipality claims the workers have been on an unprotected strike for over a month, crippling service delivery.
Workers belonging to unions Samwu and Independent Municipal and Allied Trade Union( Imatu) are demanding salary increases.