The Labour party has moved closer to ending its boycott of the Confederation of British Industry (CBI), in an early sign that steps to rehabilitate the crisis-hit UK lobby group may be working.

On Sunday, Labour confirmed the shadow business secretary, Jonathan Reynolds, had met the new CBI director general, Rain Newton-Smith, last week.

Labour and the Conservative party had cut ties with the CBI because of the sexual misconduct scandal first exposed by the Guardian. Dozens of women came forward, claiming to have experienced misconduct while working at the CBI. They included two women who said they were raped.

The lobby group’s future was cast into doubt after many of the UK’s most prominent businesses including Tesco, John Lewis and NatWest suspended or withdrew their membership following the revelations.

Two weeks ago the CBI’s new management won a crunch vote from its remaining members to continue after vowing to reform its culture and governance.

At the time, the prime minister, Rishi Sunak, said there were no immediate plans for the government to re-engage with the CBI, with Labour also saying it would also not resume discussions with the group.

However, two weeks later the picture has shifted. A report in the Financial Times over the weekend cited a Labour official as having described the meeting with Newton-Smith as “positive” and “warm”.

A party spokesperson said: “Jonathan and Rain met to discuss the changes the CBI are making. Labour have resumed staff-level contact and will continue to review political engagement as the CBI work to restore the confidence of their members.”

Other shadow ministers have reportedly not yet been given permission to engage with the lobby group.

This month Sunak shied away from questions over whether the government would re-engage, saying: “Matters at the CBI are for the CBI and for its members to work through.”