Wolt to Pay Delivery Riders NIS 34.3 Million in Landmark Class Action Settlement
Wolt has reached a compromise in a major Israeli class action lawsuit, agreeing to pay delivery riders NIS 34.3 million. The settlement provides social benefits and minimum hourly rates while preserving their independent contractor status.
Wolt and representatives of its delivery riders have reached a compromise settlement in a major class action lawsuit that threatened to redefine the employment status of gig-economy workers in Israel.
Under the terms of the agreement, which is subject to approval by the National Labor Court, Wolt will distribute a one-time payment of over NIS 34.3 million to its riders. The settlement establishes a safety net of economic protections for the independent couriers without classifying them as salaried employees or compromising their operational flexibility.
Key Terms of the Settlement
The compromise was reached following a lengthy mediation process recommended by the National Labor Court. The mediation was led by retired Supreme Court Justice Prof. Yoram Danziger and retired National Labor Court Judge Michael Spitzer.
According to the parties, the agreement balances independence with social protections:
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Minimum Hourly Compensation: The average payment per active delivery hour will not fall below the statutory minimum hourly wage.
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Pension Incentives: Wolt will match up to 50% of riders' voluntary contributions to independent pension funds to encourage long-term savings.
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Social Protections: The company commits to providing personal accident insurance, a right to a hearing before contract termination, and road safety training.
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Equal Opportunity Laws: Provisions of the Prevention of Sexual Harassment Law, the Equal Employment Opportunities Law, and the Law for Equal Rights of Persons with Disabilities will apply to the riders with necessary adjustments.
Retroactive Compensation and Flexibility
The lump-sum payment of approximately NIS 34.3 million will be distributed among riders who have worked on the Wolt platform since its launch in Israel. The payout will be calculated differentially based on each rider's historical volume of activity.
Simultaneously, the agreement preserves the core characteristics of the independent contractor model. Riders retain the freedom to choose when to log onto the platform, which deliveries to accept, and the ability to work with competing delivery services.
Background of the Dispute
The legal battle began in 2020 when a former rider, represented by attorneys Yaakov Spigelman and Amit Ido, filed a motion to certify a class action. The lawsuit argued that since delivery is Wolt's primary business, the riders must be classified as employees and receive full social benefits.
In August 2022, the Regional Labor Court approved the class action status. Wolt, represented by the Herzog Fox Neeman law firm, appealed the decision to the National Labor Court.
In 2024, the Attorney General filed an opinion opposing the class action format. The state argued that because Wolt riders have highly diverse working patterns—with some operating through third-party companies—determining employment status requires an individual factual examination for each rider, making a collective class action unsuitable.
Wolt was represented in the proceedings by attorneys Yossi Ashkenazi, Moria Tam-Harshoshanim, Grigori Danovich, and the late Orly Gerbi of Herzog Fox Neeman. The settlement does not constitute an admission of liability by any party.
