Wolt Agrees to Pay Israeli Couriers $9.5 Million in Settlement

Food delivery giant Wolt has reached a settlement in a class-action lawsuit, agreeing to pay over 34 million shekels (approximately $9.5 million) to its Israeli couriers. The lawsuit alleged that Wolt did not recognize its couriers as employees, despite claims of an employer-employee relationship.

The proposed settlement, pending approval by the National Labor Court, aims to provide financial security and protections for couriers without classifying them as salaried employees, thus preserving their flexibility as independent contractors. Key provisions include a one-time payment to couriers who have worked on the platform since its inception in Israel, a guaranteed minimum hourly wage, incentives for pension savings, personal accident insurance, and the right to a hearing before termination of their contract. The agreement also extends protections related to equal opportunity and rights for individuals with disabilities.

The settlement was reached through a lengthy mediation process overseen by retired Supreme Court Justice Yoram Danziger and retired National Labor Court Justice Michael Spitzer. Mediators noted that the terms were developed according to their recommendations and are considered fair and appropriate given the circumstances. The agreement does not include an admission of wrongdoing by Wolt.

The lawsuit, initially filed in 2020, argued that couriers are integral to Wolt's business and should be considered employees entitled to social benefits. Wolt, however, maintained that it is an international corporation providing a platform that connects service providers, couriers, and the public, emphasizing the flexibility and new employment opportunities its model offers. The company noted a significant waiting list of applicants, with many existing couriers reportedly opposing the lawsuit, fearing it could jeopardize the benefits of their independent status.

The National Labor Court will now review the settlement. If approved, further details regarding eligibility, calculation methods, and payment timelines will be released. The agreement seeks to balance the couriers' independent status with essential economic protections, addressing issues raised by the platform economy model.