Wolt Agrees to Multi-Million Shekel Payout in Courier Status Dispute

Food delivery giant Wolt has reached a settlement in a significant collective lawsuit concerning the employment status of its couriers in Israel. The agreement, which still requires court approval, will see the company pay out 34.3 million shekels to approximately 82,000 couriers who have worked with the platform since its launch in November 2018. This settlement aims to resolve a long-standing dispute initiated by a former courier, Golan Hazanovich, who argued that couriers should be recognized as full-time employees with associated social benefits.

Wolt maintained that its couriers are independent contractors, emphasizing the flexibility of their work schedules. However, the settlement establishes a compromise. While couriers will not be officially classified as salaried employees, Wolt will undertake substantial financial and social commitments. Individual payouts will vary based on courier activity, with more active couriers receiving a progressive bonus per delivery.

Beyond the one-time compensation, the agreement introduces significant social protections. Wolt will partially subsidize pension contributions for self-employed couriers, matching up to 50% of their contributions within set limits. Additionally, all couriers will receive comprehensive life and health insurance coverage funded by the company, including substantial payouts for severe injuries, disability, or death.

Experts suggest this precedent could influence how digital platforms worldwide manage their relationships with independent contractors. The case was reported by "Davar."