Wolt Reaches Landmark $8.5 Million Settlement with Delivery Couriers
Translated & summarized from Kikar HaShabbat by baba
Wolt has agreed to pay NIS 34.3 million (approx. $8.5 million USD) to settle a class-action lawsuit by 82,000 couriers seeking employee status. The settlement maintains the independent contractor model but adds new benefits and protections for the couriers.
The story in 5 lines · by baba
- Wolt settles class-action lawsuit with 82,000 couriers for NIS 34.3 million.
- Couriers will remain independent contractors, not employees.
- Settlement guarantees minimum wage and provides new benefits.
- Agreement includes insurance, training, and right to hearing.
- National Labor Court must approve the settlement.
Food delivery company Wolt has reached a settlement agreement with its couriers in a class-action lawsuit that sought to recognize them as employees entitled to social benefits. The agreement, filed with the National Labor Court in Jerusalem after more than 26 mediation sessions, involves a one-time payment of NIS 34.3 million (approximately $8.5 million USD) to be distributed among around 82,000 couriers who have worked with the company in Israel since its launch in 2018.
Despite the significant payout, the core of the agreement maintains the existing contractor model, meaning couriers will continue to be classified as independent contractors rather than employees. However, the settlement introduces several protections and benefits not typically afforded to independent service providers. These include a guaranteed minimum earning equivalent to the national minimum wage, an incentive bonus to encourage mandatory savings contributions for self-employed individuals, and Wolt-funded insurance coverage and safety training for couriers.
The agreement also stipulates a right to a hearing before termination of the contract and adherence to legal equality standards. The proposed settlement is expected to conclude the lawsuit, initiated by attorneys Amit Ido and Yaakov Spiegelman, which argued that the couriers' right to be recognized as employees and receive associated social benefits had been violated. The National Labor Court will now review and must approve the agreement for it to be finalized as a binding judgment.
