A significant settlement agreement has been submitted to the National Labor Court for approval, following a class action lawsuit filed against the delivery platform Wolt. The agreement, formulated after an extensive mediation process presided over by former Supreme Court Justice Prof. Yoram Danziger and former National Labor Court President Michael Spitzer, aims to regulate the complex relationship between the delivery giant and the thousands of couriers operating in Israel.
At the core of the arrangement is a balance between the company's business model and the needs of its couriers. Under the terms, Wolt commits to implementing an economic safety net for independent couriers, ensuring an average minimum hourly return equivalent to the statutory minimum wage. A key component addresses pension savings: the company will provide a grant covering up to half of the couriers' pension contributions, incentivizing them to secure their long-term financial future.
Beyond these aspects, the agreement introduces an extensive suite of protections rarely seen in such platforms in Israel. This includes commitments to personal accident insurance, the right to a hearing before the termination of the engagement, and the application of core employment laws—such as the Equal Employment Opportunities Law and the Equal Rights for People with Disabilities Law—with necessary adjustments.
For the thousands of couriers who have operated on the platform since it began activities in Israel in 2018, the settlement includes a lump-sum payment exceeding 34 million NIS. These funds will be distributed based on a differential mechanism tied to each courier's actual activity volume. It is important to note that the outline does not seek to change the legal classification of the couriers as independent contractors. Consistent with the agreement's principles, the couriers retain full flexibility to choose when to log into the platform, which deliveries to accept, and the ability to work simultaneously with competing entities.
The parties emphasize that the settlement does not constitute an admission of liability, and that the move is intended to provide an appropriate response to the legal issues raised by the gig economy. The parties are now awaiting the official approval of the National Labor Court, which will set the final terms and implementation timelines. Upon approval, further technical details regarding eligibility mechanisms and payment distribution will be published.