Continental Tyres was on Thursday ordered to halt plans to retrench workers at its Port Elizabeth base.
This after the Labour Court ruled in favour of trade union Solidarity, which took the tyre manufacturer to court after it planned to cut 125 jobs.
The union successfully argued the employer did not follow correct retrenchment procedures.
Continental Tyres wanted to downsize following a month-long crippling strike, which resulted in the company reviewing its shift system.
Solidarity spokesperson Johan Kruger said the court ordered the retrenchment process be stopped.
The court also ordered the company to withdraw retrenchment notices.