Wolt to Pay Israeli Couriers $9.2 Million in Settlement
Translated & summarized from NEWSru Israel by baba
Delivery company Wolt will pay 34.3 million shekels to 82,000 Israeli couriers in a class-action settlement, ensuring minimum wage and providing insurance and pension incentives while maintaining their independent contractor status.
The story in 5 lines · by baba
- Wolt to pay $9.2 million to 82,000 Israeli couriers in settlement.
- Couriers remain independent contractors but will receive minimum wage.
- Settlement includes insurance coverage and pension contribution incentives.
- Payment amount varies based on total deliveries completed.
- Lawsuit questioned employer-employee relationship status.
Delivery company Wolt has agreed to pay 34.3 million shekels (approximately $9.2 million) in compensation to 82,000 couriers as part of a class-action lawsuit settlement. The agreement, reported by "Davar," also stipulates that Wolt will ensure couriers receive at least minimum wage, though they will not be recognized as employees. Wolt will also provide insurance, safety training, and incentives for pension contributions.
The lawsuit, initiated by former courier Golan Hazanovich, questioned whether the relationship between Wolt and its couriers constituted an employer-employee dynamic. Hazanovich argued that couriers were integral to Wolt's core operations and dependent on the company, thus deserving of social benefits like pension contributions, paid leave, and sick pay.
Wolt maintained that its couriers are independent contractors with control over their work schedules and volume, negating employment status. The proposed settlement, pending court approval, upholds the couriers' status as independent contractors.
Under the terms, couriers who worked for Wolt in Israel since its November 2018 launch will receive a one-time payment. The amount per delivery will vary based on the total number of deliveries completed, with couriers who made over 7,000 deliveries receiving 0.2 shekels per delivery. For instance, a courier with 2,500 deliveries would get 329 shekels, while one with 12,000 deliveries would receive 2,094 shekels.
The agreement also includes pension contribution incentives. Eligible couriers who contribute to their self-employed pension funds will receive a 50% match from Wolt, capped at the legally mandated contribution amount. Eligibility requires meeting certain conditions, including age, minimum work volume, and annual pension fund reporting.
Wolt will also provide insurance coverage, including up to 50,000 euros for accidental death, 75,000 euros for couriers with children who die, 50,000 euros for total permanent disability, and 25,000 euros for partial permanent disability due to severe injury, for the first three years of the program.
