Industrial action by some Huntingdonshire District Council staff has been called off as an agreement has now been reached with UNISON.
Industrial action for all UNISON members employed by the council, which included some of the council's waste collection crews and other services, was due to take place on Friday, 6 October.
But the agreement means the industrial dispute has ended and all council services will be operating as normal.
Residents are asked to put their refuse, recycling, and green bins out as usual.
Cllr Martin Hassall, Executive Councillor for Corporate and Shared Services, said: "We're pleased to have reached a resolution and that this dispute has been resolved without industrial action.
We thank the public for their patience and understanding as both parties have worked hard to come to an agreement.
"We are also pleased that this process has involved feedback from all staff, and this way of working will inform future pay awards as part of our ongoing workforce strategy."
UNISON Cambridgeshire County branch secretary, Rob Turner, said: "We are happy that the 5% pay award has been agreed as well as an additional day's leave.
"Staff will be pleased that they did not need to take industrial action to secure this result.
"As the recognised union at Huntingdonshire District Council, we hope for constructive and meaningful talks moving forward."