Bus drivers belonging to SIPTU and the National Bus and Rail Union were due to strike over plans by the company over the company's radical restructuring plan aimed at tackling a projected deficit this year of €31m.
The plan included significant work practices reforms, cuts in overtime and taking 120 buses off the road and firing 160 newly recruited drivers.
A compromise plan negotiated at the Labour Relations Commission was rejected by unions.
The Labour Court is to investigate the dispute on Tuesday and in the interim Dublin Bus has agreed to defer implementation of its original cost cutting strategy.
NBRU General Secretary Michael Faherty said the union had decided to call off its planned industrial action after receiving an invitation to attend the talks.
