The charity, which provides jobs for disabled people, feared 16 staff would lose their jobs when the organisation missed out on contracts under the Department for Work and Pensions' Pathways to Work scheme. WorkDirections UK, which won contracts to carry out work previously done by the Shaw Trust, initially argued that Tupe regulations, which govern transfers of staff between organisations, should not apply.
This would have meant Shaw Trust staff would not be able to transfer automatically to the company.
But after talks with the Shaw Trust last week, WorkDirections said it was "more likely than not that a transfer of undertaking would apply in some cases".
WorkDirections UK is now in talks with the Shaw Trust to see how many of the 16 people concerned will be able to transfer to its workforce.
Catherine A'Bear, chief corporate affairs officer at the Shaw Trust, said WorkDirections UK's decision to recognise Tupe meant that the trust was "not looking at any redundancies". And the GMB union wants the Government to explain why it appointed a contractor that "challenges British workers' employment rights".