Wolt Delivery Couriers Settle Lawsuit, Remain Independent Contractors

A class-action lawsuit filed by Wolt delivery couriers in Israel, seeking recognition as salaried employees rather than independent contractors, is set to conclude with a settlement agreement. The parties submitted the proposed settlement to the National Labor Court on Sunday, following mediation recommended by the court.

Under the terms of the agreement, the couriers will continue to operate as independent contractors but will receive a package of benefits. Wolt will pay a one-time sum of 34 million shekels (approximately $9.3 million) to couriers who made deliveries since the company began operating in Israel in 2018. This payment will be distributed based on a differential mechanism tied to each courier's activity on the platform.

Additionally, Wolt will provide couriers with a minimum hourly payment equivalent to the national minimum wage. The company will also reimburse 50% of pension savings contributions made by couriers, aiming to encourage retirement savings. Wolt will also cover personal accident insurance for couriers and grant them the right to be heard before their work is terminated.

The settlement includes provisions for road safety training for couriers and the implementation of relevant changes to laws concerning sexual harassment, equal employment opportunities, and equal rights for people with disabilities. This arrangement allows couriers to maintain their independent contractor status, offering flexibility in choosing when to work, which deliveries to accept, and the ability to combine Wolt work with other employment.

The agreement does not involve an admission of wrongdoing by either party and is contingent on approval from the National Labor Court. Following court approval, details regarding eligibility, calculation methods, timelines, and the process for receiving payments will be published. The original lawsuit was filed by Golan Hazanovich, represented by attorneys Yaakov Spigelman and Ido Amit, while Wolt was represented by the law firm Herzog, Fox & Neeman.