Wolt to Transfer NIS 34.3 Million to Couriers Without Recognizing Them as Employees

The Dispute Over the Couriers' Status

Hazanovich argued that an employer–employee relationship existed in practice between Wolt and the couriers because deliveries are part of the company's core activity and the couriers depend on the platform. He sought pension contributions, vacation and sick pay, recuperation pay, reimbursement of travel expenses and severance pay. Wolt maintained that the couriers are independent contractors who are free to choose their working hours and workload.

One-Time Payment for Past Work

Under the proposed agreement, approximately 82,500 couriers who have worked through the platform since Wolt began operating in Israel in November 2018 will be eligible for a one-time payment. The agreement's total value is estimated at NIS 34.3 million, but it may increase depending on the date of its approval. The payment amount depends on the number of deliveries: the minimum is NIS 50; according to the examples provided, NIS 329 will be paid for 2,500 deliveries, and NIS 2,094 for 12,000 deliveries.

Minimum Compensation and Additional Safeguards

The average payment per hour spent making deliveries will not be lower than the statutory hourly minimum wage: Wolt will calculate the time each month and, if necessary, make up the difference. An external accountant will review the mechanism once every six months using a random sample of 100 couriers. The company will also fund accident insurance, organize safety training and add 50% to the actual pension contributions of couriers who meet the conditions—up to the amount of the contribution required by law.

Status Has Yet to Be Finally Decided

The agreement does not constitute recognition of the couriers as employees or Wolt's acceptance of the plaintiff's demands: the payments were expressly defined as part of a settlement and not as wages. In August 2022, the Regional Labor Court ruled that there was a reasonable possibility that an employment relationship would be recognized, but this question was not decided on its merits. Following the recommendation of the National Labor Court, the parties underwent mediation and are now seeking approval of the agreement; it will not take effect before the court issues its decision, and the intention is to allow couriers to object or opt out of the group in order to file a separate claim.

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