Volt Delivery Couriers Settle Class Action Over Worker Status

A class-action lawsuit filed six years ago against the delivery company Volt, demanding that its couriers be recognized as employees, has concluded with a settlement. The agreement, submitted to the court, includes significant concessions from Volt, such as a commitment to pay couriers at least minimum wage, provide safety training, offer incentives for pension contributions, and implement a "hearing" process before terminating contracts. The total settlement amount is NIS 34.3 million, exceeding the original NIS 24 million claim, and is expected to set a precedent for other platform companies regarding courier terms.

Despite these achievements, the settlement is viewed by some as an anticlimax, failing to recognize the couriers as employees. This means they remain outside the scope of most labor protection laws, leaving them with limited rights and weak enforcement. Couriers will not be entitled to paid vacation, sick leave, severance pay, unemployment benefits, or enhanced wage protection against non-payment.

Volt's contribution to pension plans is also significantly lower than the mandatory contributions required for salaried employees. The article questions whether full employee benefits would ultimately have been more costly for Volt than the settlement amount. Courts have previously ruled that certain employee rights cannot be waived, yet this settlement addresses issues that courts had previously deemed non-negotiable.

The article also criticizes the state's role, suggesting it has enabled a "backyard" of workers lacking basic rights. This is evidenced by a 2022 decision by a government team, led by the head of labor relations at the Ministry of Labor, to forgo recommendations on platform worker protections. Furthermore, the state abstained from voting on a global labor organization convention concerning platform worker rights in June.