Staff represented by the Alberta Union of Provincial Employees were to go on strike Friday and the owners of Symphony Senior Living Aspen Ridge were to lock staff out.
Union president Guy Smith says both sides have agreed to postpone taking job action until Monday.
Smith says new contract talks are planned in the hope of reaching a deal to avoid affecting the seniors who live there.
Earlier this week Symphony said it was cancelling its contract with Alberta Health Services to fund 49 care beds at the facility.
The main issue in the dispute is staff salaries.