Wilko store closures and staff redundancies are being put on hold while administrators consider new rescue bids for the budget retailer.
Following a meeting with PwC on Tuesday, GMB Union confirmed that Wilko would not lay off staff while other bids were being considered.
GMB National Secretary Andy Prendergast confirmed in a statement that employees' jobs would be safe for now: "All redundancies at Wilko have been suspended while the administrator considers further bids.
"Whilst this is a positive development, Wilko is not out of the woods by any means and this is a time of incredible stress and worry for the 12,500 workers who face losing their jobs."
The decision to pause any redundancies followed a £90 million bid from private equity firm M2 Capital for the business at the end of last week, which included a pledge to retain all employees' jobs for two years.
M2 Capital's last-minute bid is one of several being considered by administrators. It is also reported that billionaire HMV owner Doug Putman has also tabled a bit to rescue half of the Wilko's stores and thousands of staff. But the chances of that bid succeeding have been described as "unlikely" by sources in The Sun.
While closures and redundancies have been kicked to the side for now, some bidders have reported "difficulties" in the bidding process.
The union wrote to the business secretary Kemi Badenoch this week, explaining that some parties had described "difficulties" engaging with PwC as the administrator seeks to find a solution for the group, which entered administration earlier this month.
PwC said in a statement that it was working "relentlessly" to secure a sale of the retailer, with negotiations continuing with a number of parties.
Wilko called in administrators on 10 August, putting more than 12,000 jobs and 400 stores at risk. The chain is the largest retailer to collapse into administration since the convenience-store business McColl’s, which employed about 16,000 people, a year ago. That chain was rescued by supermarket Morrisons.
Wilko has been on a major cost-cutting exercise in recent months, agreeing a £40 million funding package in January with Hilco UK.