Fujitsu will also hold further discussions with PCS about pay progression and transparency of contracts in December.

Mark Serwotka, PCS general secretary, said: "This is a major deal for these private sector workers, particularly the lowest paid, who do essential work supporting our public services."While we have called off our strike, we send solidarity and support to members in Unite and call on the company to sit down with their representatives to resolve the issues."

Although PCS members will not be joining Unite on the strike on Monday, the union said it will write to Fujitsu calling on them to resolve the dispute, send a PCS delegation to Unite picket lines on the day, and carry out workplace collections for Unite's hardship fund.

Fujitsu said in a statement: "We are pleased to have reached an agreement with PCS which they will be recommending their members accept it and so they will not be going ahead with any of the industrial action they announced.

"We are disappointed the action by Unite is still scheduled to go ahead, however we are continuing our discussions and hope the dispute will be resolved."