Wolt and Couriers Reach Landmark Hybrid Employment Deal

Delivery giant Wolt and courier Golan Hazanovich have reached a settlement agreement in a class-action lawsuit that aims to redefine the employment status of its delivery couriers. The proposed deal, submitted to the Labor Court, was brokered through mediation overseen by retired Supreme Court Justice Yoram Danziger and retired Labor Court Judge Michael Spitzer.

If approved, the agreement will distribute over 34 million shekels among long-serving couriers. More significantly, it establishes a novel "hybrid employment model." This model seeks to provide couriers with a degree of economic security and employee-like rights while preserving the core characteristic of their work: independence. This approach addresses the complexities introduced by the gig economy, where algorithms and apps function as the new employers.

The lawsuit, filed by Hazanovich five years ago, highlighted two key aspects of Wolt courier work. Firstly, couriers have significant control over their work, able to log off the app at any time, blurring the lines of who the employer is. Secondly, couriers are permitted to work for other companies, including competitors, simultaneously. Hazanovich himself worked as a locksmith and ran his own licensed business alongside his courier work.

The settlement proposes a minimum earnings guarantee, ensuring couriers receive at least minimum wage for hours worked. Wolt will also contribute to couriers' pension savings, potentially matching up to 50% of their contributions, and provide personal accident insurance. Additionally, couriers will have the right to a hearing before termination and receive professional training. These provisions move couriers closer to employee status, but the agreement stops short of full employment.

Crucially, the hybrid model retains courier flexibility to choose when to work, which deliveries to accept, and whether to engage in other work. This preserves their autonomy, a central tenet of the agreement, alongside Wolt's commitment to minimum employer-employee standards. Israeli law currently lacks such a middle ground, with courts historically adapting existing definitions rather than creating a new category. The settlement, if ratified, creates a distinct hybrid status, acknowledging the unique nature of platform-based work.