Wolt to Pay Israeli Couriers $9.3 Million in Class-Action Settlement
Translated & summarized from Arutz Sheva by baba
Wolt has agreed to a class-action settlement paying approximately $9.3 million to 82,000 couriers in Israel. Couriers will receive financial compensation and improved benefits, but will remain classified as independent contractors.
The story in 5 lines · by baba
- Wolt will pay $9.3 million to 82,000 couriers in Israel.
- Couriers will receive financial compensation and new benefits.
- The settlement still requires court approval.
- Couriers will remain classified as independent contractors.
- The agreement ends a significant platform economy lawsuit.
A dramatic settlement has been reached in the class-action lawsuit against the delivery company Wolt, which will see the company pay approximately 34.3 million shekels (about $9.3 million USD) to around 82,000 couriers. The agreement, which still requires court approval, concludes a multi-year legal battle.
While the couriers will receive significant financial compensation, their employment status will not change. They will continue to be classified as independent contractors, not employees of Wolt. The payment will be distributed differentially based on the volume of deliveries each courier made since November 2018.
Beyond the monetary payout, Wolt has committed to several new benefits aimed at improving working conditions. These include a guaranteed minimum wage per hour of activity, a bonus to encourage pension savings, and expanded insurance coverage for injury, disability, or death during deliveries.
The settlement also introduces new protections for couriers, such as the right to a hearing before their contract is terminated. Additionally, principles of equality and prohibitions against sexual harassment and discrimination will be applied to the relationship between Wolt and its couriers.
Despite these improvements, a key clause in the agreement maintains the couriers' status as independent service providers, provided the flexibility and independence of their work are preserved. This settlement marks the end of a major case in the "platform economy" without altering the core employment model upon which Wolt's operations are based.
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