Wolt Reaches Landmark $34 Million Settlement with Delivery Couriers

Wolt has reached a dramatic settlement agreement in a class-action lawsuit concerning its delivery couriers in Israel, which has been submitted for approval to the National Labor Court. The proposed agreement, if approved, will provide couriers with a package of benefits and protections. These include a guaranteed minimum hourly wage, incentives for pension savings for independent contractors, personal accident insurance, the right to a hearing before termination of their contract, and the application of equal opportunity and disability rights laws.

As part of the settlement, Wolt is also expected to pay a one-time sum exceeding 34 million shekels (approximately $9.2 million USD) to couriers who have made deliveries since the company began operating in Israel in 2018. The settlement was filed by Wolt and the representative plaintiff, Golan Hazanovich, represented by attorneys Yaakov Spigelman and Amit Ido. Wolt was represented by attorneys Orly Gerbi, Yossi Ashkenazi, Moriah Tam-Hershushanim, and Grigori Danovitch.

The agreement was forged after extensive mediation, recommended by the National Labor Court, presided over by retired Supreme Court Justice Prof. Yoram Danziger and retired National Labor Court Judge Michael Spitzer. The mediators noted in their report that the terms were developed according to their recommendations and represent a fair and appropriate resolution considering all factors.

The settlement aims to create a balanced framework, preserving the couriers' independent contractor status while establishing a safety net. This includes ensuring that the average hourly earnings for deliveries will not fall below the minimum wage. Wolt will also match up to 50% of courier contributions to their pension savings, encouraging long-term financial security. Additional protections include personal accident insurance, the right to a hearing before contract termination, road safety training, and the application of relevant anti-harassment, equal opportunity, and disability rights laws.

The agreement maintains the flexibility inherent in the independent contractor model, allowing couriers to choose when and which deliveries to accept, and to work for other platforms simultaneously. The settlement does not involve an admission of wrongdoing by either party and will only take effect upon court approval. Both sides and the mediators believe this agreement offers significant benefits and protections while preserving courier independence and flexibility, addressing issues raised by the platform economy model.