Wolt Agrees to Pay $34 Million in Israeli Courier Settlement

Food delivery platform Wolt has reached a precedent-setting settlement in Israel, agreeing to pay over 34 million shekels (approximately $9.2 million USD) in compensation to its couriers. The agreement, submitted for approval to the National Labor Court, also introduces new social protections for the riders who have worked on the platform since its launch in Israel in 2018. This resolution follows an extensive mediation process, with mediators deeming the compromise fair and balanced. The model maintains the couriers' status as independent contractors while establishing a financial safety net. Under the terms, Wolt guarantees that the average hourly earnings for time spent on deliveries will not fall below the national minimum wage. Additionally, Wolt will cover up to 50% of self-employed pension contributions for couriers under specific conditions, encouraging long-term savings. The package of protections includes mandatory accident insurance, the right to present their case before contract termination, road safety training, and the adaptive application of laws concerning equal opportunities, disability rights, and sexual harassment prevention. The 34 million shekel payout will be distributed based on the volume of work each courier completed. Crucially, couriers retain their flexibility, including the freedom to choose when to work, which orders to accept, and the ability to work for other platforms simultaneously. The settlement does not include any admission of guilt from Wolt and will only take effect upon official court approval. Detailed instructions regarding eligibility and payment timelines will be released subsequently.