KHO established: Wolt's food couriers are employees
The Supreme Administrative Court of Finland affirmed that Wolt's food couriers qualify as employees rather than independent contractors, rejecting Wolt's appeal against the ruling.
The Supreme Administrative Court of Finland, known as KHO, ruled last May that food couriers working for Wolt are classified as employees, not independent entrepreneurs. Wolt sought to overturn this precedent by claiming that the decision was based on incorrect application of the law or an error, but the KHO has now dismissed Wolt's appeal. Consequently, the court's initial ruling regarding the employment status of couriers remains in effect.
Despite the ruling in May, Wolt stated during the summer that its couriers would continue to operate as independent contractors. However, in October, the company announced plans to start recruiting couriers for employment-based positions, indicating a shift in their approach in response to the court's ruling. This change may reflect broader trends in employment classification in the gig economy, suggesting that companies may need to adapt their business models to comply with labor laws.
Moreover, Wolt also sought compensation for legal fees in the Supreme Administrative Court, but this request was rejected as well. This setback for Wolt is part of an ongoing discourse in Finland around gig workers' rights and the obligations of companies to ensure fair treatment and compensation, as exemplified by recent developments including other companies like Foodora ceasing operations in Finland. The implications of this ruling may influence future legal challenges and the operational strategies of similar companies in the gig economy.