The Department of Community, Culture and Leisure says the new pay, terms and conditions for bus drivers will remain in place.
It follows the outcome of an Employment Tribunal which found the drivers were not unfairly sacked when the DCCL dismissed drivers from their old contracts last year and issued them with new ones.
Chief Executive of the DCCL, Colin Kniveton, says he's pleased the matter has been resolved before the dissolution of the department.
He commends the drivers for their professionalism and commitment to the public whilst the tribunal has been ongoing and adds that while tensions have been high in the past, he hopes this now brings an end to the dispute.
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