table of contents - parliament€¦ · lewis and argos. 1. the goods are sent from the main...

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Written evidence from Helen Goodman MP (WOW0105) Table of Contents Summary Appendices: Appendix 1: Expert Logistics Delivery Driver Statements Appendix 2: Expert Logistics Example Contract Appendix 3: Fines Schedules Appendix 4: Similarity with other tribunal cases Appendix 5: AO World and Expert Logistics Employee Statements Appendix 6: Statements from AO World Annual Report Appendix 7: AO World Confirmation Statement

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Page 1: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

Written evidence from Helen Goodman MP (WOW0105)

Table of Contents Summary

Appendices

Appendix 1 Expert Logistics Delivery Driver Statements

Appendix 2 Expert Logistics Example Contract

Appendix 3 Fines Schedules

Appendix 4 Similarity with other tribunal cases

Appendix 5 AO World and Expert Logistics Employee Statements

Appendix 6 Statements from AO World Annual Report

Appendix 7 AO World Confirmation Statement

SUMMARY This submission concerns a group of workers who are being exploited and highlights issues relevant to the questions concerning the status and rights of the self-employed the balance of benefits between the worker and employer the protection of these workers the evidence of unfair treatment the use of zero-hour contracts and the role of trade unions

Workers from AO Worldrsquos subsidiary company Expert Logistics came to see me following the court ruling on Aslam Farrar and Others v Uber AO World plc is an online retailer (aocom) specialising in household appliances It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index The logistics arm of the company is run by Expert Logistics which is a fully owned subsidiary of AO World Expert Logistics provide 2 man home delivery crews 7 days a week 7am to 7pm to deliver products for aocom and more recently expanded to other companies including Next Currys John Lewis and Argos1 The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered to the customerrsquos home

The drivers are classified as self-employed but this does not appear to be the reality Furthermore there is a culture of bullying and inconsistent health amp safety requirements Drivers are threatened with legal action if they complain about the fee reductions or excess damage payments Expert Logistics know that drivers cannot afford to pay tribunal and small claims court fees Whilst drivers are fined and sent home if they forget their boots or hi-vis clothing there are no safety nets in the Spennymoor depot and drivers have been injured by falling delivery items

The fundamental business model used by AO World is to offload the financial risk onto the worker ndash in this case the delivery drivers Any disputes with the customer damage to the truck or delivery item are charged to the delivery driver regardless of who is at fault There is a pound3000 excess on any damages to the vehicles and this is payable by the delivery driver not Expert Logistics So for example when a falling tree hit an Expert Logistics truck last year the driver was considered liable for paying the pound3000 insurance costs despite not being at fault ndash he will work for 365 hours just to pay this bill The economic theory is the profits go to the one who bears the financial risk in AO World the shareholders receive the profits and the workers bear the risk

By designating the drivers as self-employed AO makes it impossible to secure trade union recognition By treating them as self-employed AO World gets round all employment protection legislation payment of the minimum wage and statutory entitlements to holiday sick and maternity pay and pension contributions

The difference between the public statements made by the company and the treatment of their workers is stark The system of arbitrary fines is akin to that used in privately owned mines at the end of the nineteenth century

Reasons why the classification of self-employment should be challenged

bull Expert Logistics sets the daily route and the drivers are not paid any extra if the route takes longer than the set hours predicted by Expert Logistics

1 Expert Logistics deliver to buildings which Argos drivers refuse to deliver eg flats

bull The delivery drivers have to wear a set uniform2 and use branded vans owned by Expert Logistics3

bull Expert Logistics imposes strict conditions4 on drivers and fines for non-delivery torn labels incorrect codes et cetera5

bull In the 2 man crews one is designated as Crew Leader and he receives the full pay for both drivers minus any fee reductions and is responsible for passing on the wages to their assigned crew mate

bull Contrary to Section 7 of the Contract the driver cannot provide an alternative driver if they are unable to work and they are assigned a crew mate ndash they have no option who they work with Expert Logistics assign another driver and charge a fee for non-attendance (even if sick) In Spennymoor a driver who falls ill during a shift is charged pound50 in Slough it is pound150

bull Invoices are generated by Expert Logistics not the driver bull AO WorldExpert Logistics determines complaints by the customers The driver is asked for a

statement but there is no investigation to check the veracity of the customerrsquos claim It is rare that the damage costs are not passed on to the driver

bull Drivers who work for RFG Greatholder amp Sons (sub-contractor to Expert Logistics) are not allowed to be employed by Expert Logistics due to a ldquogentlemanrsquos agreementrdquo This is contrary to the contractual term stating that drivers are free to provide services to any third party6

bull Expert Logistics frequently use the full legal hours a driver can work making any alternative employment impossible

March 2017

2 Appendix 2 Example Contract Section 6

3 Appendix 2 Example Contract Section 11

4 Appendix 2 Example Contracts Examples Sections 15 17 and 23

5 Appendix 3 Fines Schedule

6 Appendix 2 Example Contract Section 3

Appendix 1 Delivery Driver Statements on Export Logistics Driver A

ldquoI have had a driver phone me today regarding an accident that his team mate had (He wasnt even in the truck at the time) He has been told to pay half the damages or get effectively fired He has also been told that if the other driver refuses to pay or leaves he will be responsible for the entire amountrdquo ldquoThe hourly rate offered is misleading as that rate is per two man crew So it works out to pound900(weekdays) - pound1025(weekends) per hour per person But what they do not tell you is that you are given a fixed amount hours per route you do So if you are given 10 hours to do a route and it takes you 11 hours you will still get paid for only 10 hours Okay there is a flip side if you do the route in 9 hours you will still be paid for 10 hours but that is rare Also what they do not tell you is that you have an excess of pound300000 if you have an accident or for any damage claims against you The excess is taken at 10 of your team weekly wages until paid in full In effect a person could lose up to 20 of his weekly wages so that pound900 per can easily become pound720 per hour

At Spennymoor depot the 35 ton drivers are paid at pound825 per hour weekdays and pound925 per hour at the weekends and bank holidays Any damages to be paid back can therefore take you below the minimum wage Of course if you work for Ray [Greatholder amp Sons] you only get pound700 Sorry this is long winded reply but the only way I can explain it all Also to add drivers do not get sick pay holiday etc which employees in the offices of Expert logisticsAOcom do get I must also add that 75ton drivers get an extra pound100 per hour above the 35 ton rates

ldquoOne of the drivers was charged pound670 to replace a new floor The large American fridge had caused a tiny tear in the carpet but there was already substantial damage to the floor ndash there was nails sticking through itrdquo

In response to John Robertsrsquo quote (ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo)

ldquoWith regards to water there is water at the depot You have to ask for it (not always available) Now and again you do get cans of fizzy drinks But no there is not a member of staff who puts two bottles in each truckrdquo

ldquoI have had another driver phone me today regarding an accident that his team mate had He has been told to pay half the damages or get effectively fired He has also been told that if the other driver refuses to pay or leaves he will be responsible for the entire amount I talked to the manager to say that this wasnrsquot fair and he told me something interesting They pay a solicitors firm a monthly fee of thousands of pounds to make sure they stay ldquojust within the lawrdquo and that no one has won in court against them (drivers taking Expert to court) The solicitors say they guarantee a win in any court case the solicitors firm is liable for the cost They [Expert Logistics] donrsquot pursue damages in a court when drivers leave as they know it would get thrown out of court They know if they lost one case the whole rotten system would collapse

Spennymoor Delivery Driver Statement

Mr A was billed pound300000 for damage done to the truck he was driving when it was struck by a falling tree He has been paying off the damage for over a year now at 5 of his wages Again told that he either pays for the damage or loses his job even though it was not his fault He had already passed the tree when it fell over striking the box of the van but was billed for the damage to the truck even though he was delivering for Expert Logistics The farmer who owned the land refused to admit to any fault as well When he protested about the bill he was told by the manager that it was tax deductible

Former delivery driver and Training Officer

We were regularly sent to London to deliver training Travel expenses (time travelling and fuel) were not paid and although we were reimbursed for hotels there could be a delay of weeks ndash which is a long time to wait when paying for expensive hotels in London So we were just paid for the hours spent training but we could spend as much time again travelling Often because we werenrsquot paid for the full hours we were away from home we ended up driving to London sleeping in the truck for a couple of hours delivering 12 hours of training and driving back to the North East

Ex-driver

Damage was caused to my truck due to the floods ndash the manager told me ldquojust take the hitrdquo ndash The hit was pound1200 and it wasnrsquot even my fault There should be a built in company insurance ndash why are we taking the risk when we arenrsquot getting paid enough to begin with

Current driver

Irsquove worked there for 4 years and we had a slight pay rise since the Uber case ndash they are obviously trying to stop us wanting to take them to court too Itrsquos not fair as the office staff get holiday sick pay ndash its discrimination as its men who arenrsquot getting those benefits yet we are the ones most likely to be hurt There is a low volume of calls at the moment ndash I am only getting two days so itrsquos a struggle supporting a family and paying a mortgage I canrsquot get another job though as I have to be available or I will lose this one If you say you cannot work a particular day they wonrsquot offer you any work for at least a week afterwards

Another delivery driver

We work in two man teams One person is considered to be the crew leader and is paid by Expert logistics for work done The crew leader then pays his crew mate from this payment All damages fines etc are charged to crew leader It is Expert LogisticsAO way of distancing themselves from any damages

In this case the crew leader did not have a partner at the time to work with but was assigned another person to work with by Expert logistics This person was from a different crew number -His partner (crew leader) was off work after hurting his back No sick pay I must add Unfortunately this crew member had an accident whilst working on the Crew Leaderrsquos

number The Crew Leader was not even in the truck when the accident occurred but has been charged a bill of pound96704 This amount will be taken off of the Crew Leaderrsquos wages before it get to his bank account The Crew Leader has been told that he has to pursue the other driver for the amount owing Also as he is self-employed it is not Expert logistics problem The Crew Leader has also been told that if he refuses to pay he will lose his job

Unfortunately the Crew Leader cannot afford to lose 10 wages every week and is starting a new job next week He has effectively been constructively dismissed Believe or not the driver who had the accident has gotten away without paying the damages as the Crew Leader has left The damages stay with the Crew Leaderrsquos crew number which is his crew number Strangely Expert Logistics will not be pursuing the Crew Leader legally

This is something that happens all the time at Expert Logistics

Glassdoor Employee Review

Pros

Doesnt Recommend

Negative Outlook

Its a job thats about it

Cons Crap wage really really long hours Mlich you are not paid for if a route takes

14 hours to actually do and they say you can do it in 8hrs 40 min you get paid for 8hrs 40 min At Heyvood Depot you have to unload all old appliances at end of a morning run and afternoon run Mlich they say you are getting paid

for Strange how at crew you just leave the van full and they do it But you get the same rate You get told your working at 11 pm at night by text then they cancel it You are forced to 1MJrk 4 TRAINING days where nobody trains anyone the TRAINER just wants the work done as quickly as possible

sometimes you can 1MJrk 12+ hour days and during training you receive the princely sum of pound60 a day how anyone on here can call this company a good place to work is unbelievable it must be management leaving good reviews as it cant possibly be the drivers The throughput of drivers is unbelievable

too If you fail to appear for work they fine you pound50 and stand you down for four days the four days happen to always coincide with the training days so they have plenty of cheap labour to replace you you are forced to take on the responsibility of paying your co drivers wages all i Vas informed Vas that i was a lead driver and he was the co driver wasnt till we got paid that i understood

that he worked for me not them absolute joke Another way of getting yourself

into trouble with the tax man and laziness on Expert logistics part as they cant be bothered to do both the Nages If you NOrk for this company you will regret

it i know i did

Show Less

Advice to Management Stop lying to everyone

2132017 Epertlogislics Relieos I Glassdoorcouk

you to-ask ydu to nip Birmingham to just pick a few drops up as another crew Id behind but if you do it your only getting in around 9pm after starting around 430am but not getting paid the full hours your out but if you say no the office they are funny with you so you better say good bye to your next few days work The manger is a joke after emailing him asking why so many shifts are getting cancelled Ive got bills to pay I cant afford to keep having time off only work 2-3 days a week he replied with just Ill take it youve quit then No explanation so that sums up how professionally its run so after that I quit not being treated like a mug

So all that summed up Long days no respect and do anything to take money off you most truthful review about expert logistics on here

Show Less

Advice to Management At least show some respect to your drivers that are out for over 12 hours a day If you charge drivers for vehicle damaged let them know you did do for the 1st month I was there but after that I only found out in my pay slip that money was constantly coming out

Also when cancelling crews shifts Nhy do you not let the driver know instead of just not texting them a time to be in even though you said the morning before theyll be working Give them a reason why they iOnt be earning money that day

Show Less

Helpful (3)

2132017 8q)ert Logistics Re-iew I Glassdoorcouk

Pros There is no pros to this company they use you up and chuck you out Have no concern for your health of safety And talk and treat you like crap

Cons Over vvork you under pay you treat you like crap on a daily basis dont care for you safety or health if you dont dance too there tune out the door you go best thing Ive done in this company was to leave

Advice to Management Stay safe be cause the way you treat your staff Nill and is going to get you into a lot of trouble Best advice is get yourself some training in how to respect your staff

Helpful (1)

Ray Greatholder amp Sons case study (RGampS) AOCOM

RGampS provide two team drivers for Expert Logistics (EL) (sub-contractor)

Key issues

Pay

bull Lower pay rate than the contractor (EL)

RGampS - pound750ph Expert Logistic drivers pound897ph

bull Working for less than national living wage as drivers are not paid for hours they work over the set hours so if a delivery takes longer than RGampS estimate it is unpaid (eg frequently time taken to reach properties or to deliver goods is incorrect)

bull Unfair clause preventing drivers from approach EL direct RGampS have a lsquogentlemanrsquos agreementrsquo that drivers working for RGampS will not be employed directly by EL if they leave RGampS This means that they are stuck earning a lower wage for the same role

bull Drivers have to be available for shifts and therefore cannot take on work elsewhere ndash but are not guaranteed a set number of shifts ndash difficult to manage billsrent or apply for tax creditsuniversal credit

Deductions from pay

bull No proof of costs justifying the reduction is provided

bull Once one lsquofinersquo is paid another is added to keep people working for them in order to pay their lsquodebtsrsquo

bull Lack of information on the deductions from the pay (eg invoice just shows a code and the amount deducted)

bull Told that the deduction is 10 but it is frequently up to 20

Accidents

In his first week he hit a car and was charged bill of pound606 ndash this was repaid by deductions from his pay Then he was given a second pound913 bill for same incident ndash when he queried this he was then told that pound606 was the cost of the hire car and the pound913 bill for the repairs

Recently his van skidded on the ice into a ditch on a steep hill ndash he was injured and caused damage to the van He tried to claim lsquopay replacementrsquo through the insurance and was told that he had to be sick for two weeks before he could claim He has paid pound10pm for the insurance with no details of the policy He could not afford two weeks without pay and therefore had to return to work injured

Threatening text messages

When he requested information about the deductions and suggested that he would visit a solicitor her was sent the following text message

Attached Copy of lsquoinvoicesrsquo showing deductions and no information on why the deductions are made

RfClIVED 2 o FEB 2017 ~~~~~~~-

VMS(oS1~0

~ etGT-35-=t

StOiieacre Motor Group

SIDitGlti680CtJ0026S6 t23Z1202805 24022011 YY60tlJO t h middot~-11abull _orgt middotraquo-~bull~-_ ~ middotbull middotbullmiddot-i -~middot- middot t middot middot-middot bull-1 bull ~_a bull ~ -V bullbull bullmiddot ~r bulltI IKV~W~~bullwcT 1 middotmiddotbull 1 bulllt- bullbullmiddotbull ~middot bull tbull middot bull~ 19~middot11 ~ 1t -_ ~t-middot~ fbullCmiddottbull11t111acJbullbullbull

V0006~ VHS lJamp741fiampFID1K S POamp 24588

middot middot ~~ CltloU1Trr -~middot~ t4 ~middot J~~t~1~~middotrbull~degi~1middot~9att LaitYampampHmiddot middotmiddot~~- middotDate 11-tmiddot i~ fmiddot(0-litttUmiddoteutmiddot 1r Jdeg~iliniDui~ L__ 81110 I _ _ middot- --- l 7~0~~ _ 25012011 o oo

middot-middot middot middotiiiYImiddot bull ~bullmiddott)r11 iiiiamp~Sebull~middot_ middotmiddot~bullmiddot- bullmiddot middot middotmiddotmiddot middot1irtoimiddoti1rJ~11n1t~fiiilibullltnl(~-middot~lliiiimiddot middot middot~~1itllGlll V bull bullbull bull-bull middot bull ~middotmiddot c bullbull ~~- bullbull Pf~Y ~ ~ bullmiddot ~ 1 middot middot middotmiddotbulldeg 1 bullbull 1 bull7~ 1 ~ 1 ~A ill)I bull bull r

BOD Bodywork rapair aa per bull~tiaate Jgt6M bulla~nt materials BJIA Zo11lonmental Chargbull CJIR CAil CAllll 11Xl SUN ~ecb ampDd data methods Z801l140rroooo BEAK ra BUMPER R l00 1289 EACB 000

X ZR07119tr0901 99ACER l1R BIJIUgtER l 00 1421 EJU8 000 X Z801110ff0G21 GRILLE FR BOMPEa l 00 4721 JGCa ooo X ZB014100fP200 0 WIW R l00 49 78 ElltCS 0 00 X ZH016203T~OG11 laRROR ~LJSS 100 3980 ZACB 0 00 X zbull091BOsPA003 CLIP BVKiBR 7 00 2 17 ~B ooo

Z809180S7A003 CLI P GRILLE 400 218 ~ca 000 Y ZK091~06S9A003 CLXP B BtrldPER OO 2 17 JIJICS 000

ZH091301B0400 CLIP WI5Q 1000 1 55 JaeB 000 X ZB091S03S7AOOS CLI~ Ill GJIILLE 200 Z 18 lACB 000 1x zaOllOI~r0900ZA ra BllMPBSl I ~00 294 35 ~CB 765

1

VMS (FLEET middot N middot~MmiddotN LTD p

j A1PROVED

~ IEmiddot 1 I C 1 I 7 I

22 0 S

12 89 S l421

21 $ 0 78 I 91 80 81 15Us

872 S a se s

tsso ls 4 3~ S

2BG 70 SI 1S0$1 II

LSnl lfSE01 SITlPBS--- bull ~S09 DCB 000

~ bull c1- 1 I 6-511-I fY 1-1 0 ~ middot middot rbull _ middot ramiddot a-imiddot ~ middot middot~ ---- ----

PU1ta SlS13 middot middot middotmiddotmiddotbull frJ bull ~- r bull middot lfQt 1167 04 Sach~e Omiddotoo --middot middot~ ~Orl)d~~ middotF-1~1fCD~(AO 1 341 VAT 19341-

Lllboux 449 91 middotmiddot= I loial 1160 45_1 Slhlet () 00 middotmiddotI - -middotmiddot ---

_-deg~- J o~o L_ - L_ Paid Owing

000 ll60 45

CD V rrS l bS7C6 IZX P7 7- - 17

Appendix 2 Example Contract

9) In order co ensure satisfaction for Experts cust0mers and following a reqesr by Expert to proYide services which you have accepted if you are unable to pnlMde those services whemer by reason of illnessinjury of yourself or third parties or otilenorise you must give as much notice as possible Should Expert incur additional costs as a restit of your failure to A provide services that have been agreed we reserve the right to seek corpersation from ll you

I 0) It is agreed that you are not an employee of Expert and will be responsible for n-aking the appropriate PAYE deductions for tax and national insurance contributions from the money which you pay to other crew members together with your own income taX deductions and national insurance You agree to indemnify Expert in respect of any claims that may be made by HM Revenue and Cuscoms for any failure to do so

11) You will be provided with a fully fuelled Expert delivery vehicle to carry out your deliveries Expert agrees to pay you for each daily route which is calculated using the rate for each depot This amount will be agreed at the time of Expert requesting the provision of services but is subject to adjustment under clause 18 Expert operaces a self-billing procedure under which it will endeavour to make payment to you by the Monday of the week following the week in which the relevant delivery is completed You agree co enter a self-billing agreement in such form as Expert requires from time to time The current forms required are at Appendix I if VAT registered or Appendix 2 if not VAT registered lffurther expenses are incurred or additional services are carried otrt on behalf of Expert men a Additional Payment Claim Sheet (Appendix 3) will need to be completed and submitted before a payment is made and payment will only be made if the expenses or additional services have been authorised in advance by the transport or an outbase manager We will deduct a deposit of pound100 which will be taken from your first two weekly invoices for the Expert property you will be given Please sign Appendix 4 enclosed confirming your acceptance of these items On termination of this contract by either party this deposit will be refunded to you in full providing that both the phone and HHT device are in good condition when they are returned Without affecting any other rights we have we may deduct from that deposit any losses we suffer as a result of your breach of this agreement

12) Driver Bank details must be completed using Appendix 5 to enable payment of your fees However should any of your details or circumstances change thereafter then please inform the Company as soon as possible using Appendix 6

13) You will indemnify Expert for all costs incurred in connection with the provision of the services as a result of any deliberate or negligent act or omission of yours andor your crew member(s) This includes vehicle damage to Expert vehicles damaged lost or stolen products or property third party property damage including vehicle damage and all other damage to persons and property whatsoever Expert will issue a debit note for any costs mat you need to pay Expert and (without prejudice to any other remedies it has) may deduct these from any payment due to you

14) Expert carries out monitoring in order to protect the interests of the Company and other road users and its customers Such recording will take place by way of a video camera within the cab another within the box itself one outside the vehicle facing forward and one at tile rear of the vehicle These cameras are operational at all times whilst the vehicle is in your possession The purpose of the monitoring is to a Check the quantity and quality of services provided by you as one of its subshy

contractors b Safeguard you

c Check compliance with all applicable laws including laws relating to Health and Safety

d Assist in dealing with customer complaints

The information collected will be viewed routinely by the Company for these purposes

Expert has carried out an assessment to ensure that the way in which it records or processes this information is lawful and fair to you and other sub-contraCtOrs It is satisfied that the monitoring that will take place is fair and will not intrude into your and other subshycontractors private lives Any adverse impact on any sub-contractor is considered by the Company to be justified by the benefits to the Company customers and other subshycontractors The Company is satisfied that there is no other way in which the Company can reasonably achieve the purposes set out above Nevertheless if you have any concern about the monitoring you should report them in writing to the Expert Transport Department

By signing this letter you are confirming you understand and accept and agree that the Company may undertake this monitoring and that you will not tamper with or otherwise interiere with the proper operation of the monitoring equipment

15) Under no circumstances must Experts vehicles uniforms or telephones be used for any business other than that directly associated with the delivery of services for Expert

16) You must (and muse ensure that your crew member(s) and any ocher person(s) you use to provide the services under this agreement) comply with Experts customer services policies and procedures at all times

17) You agree to and understand the Substance Misuse Policy by signing Appendix 7 You must ensure that your crew members and any other persons you use to provide the services under this agreement comply with this policy at all times

18) Your fees will be subject to reduction as set out in Appendix 8 in the event that you fail to provide your services in accordance with our requirements From time to time we may amend Appendix 8 (both as to the requirements and the fee reductions) and the amendments will be effective in respect of all services provided by you after the amendments have been notified to you

19) Neither you nor any of the personnel you use to perform the services may enter into any binding contract or other commitment on behalf of Expert nor make any representations or give any warranties or guarantees in relation to the business of the Company or to goods or services supplied by it nor incur any liability whatsoever on behalf of Expert

20) This agreement may be terminated by either party by giving one weeks notice in writing to the other or by Expert with immediate effect if you (or any of your personnel) commit a material breach of any of its terms or of the terms of any of the policies andor procedures referred to in it

21) Following termination by either party your final payment (subject to deduction of any monies due to us) will be paid 28days after termination

22) All information provided to you by Expert relating to customers and the orders for goods placed by customers is strictly confidential You must only use (and you must

expert logistics

ensure that your mates employees and sub-contractors only use) that information for the purposes of this agreement You must not disclose (and you must ensure your mates employees and subcontractors do not disclose) that information to any third parcy unless you (or they) are required by law to do so You must comply (and you must ensure your mates employees and sub-contractors comply) with the provisions of the Data Protection Act 1998 and all other applicable legislation and codes of practice in relation to that information and its processing

23) You agree that neither you nor any of the personnel you use to carry out the services will provide any other services to any customer of Expert apart from those services

that you have agreed with Expert to provide to that customer In particular but without limitation neither you nor any of your personnel shall agree to provide any scrap removal or installation services for a customer unless these have been agreed beforehand by Expert If a customer requires the provision of services that are not in accordance with the details agreed by you with Expert you (or your personnel) must refer the matter to the Contact Centre for Expert to agree those services with and take payment from the customer before you (or your personnel) provide those services Neither you nor any of your personnel shall accept cash or any other payment from a customer for services provided All payments must be made directly to Expert by the customer

Yours sincerely for and on behalf of Expert Logistics Limited

Signed

Print name

Print position

Date

I have read and understood the attached letter and acknowledge and agree its terms

Crew name

SIGNED

DATE

Appendix 3 Fines Schedule

Appendix 4 Similarity with other tribunal cases

Aslam Farrar and Others v Uber httpwwwbbccouknewsbusiness-37802386 httpswwwjudiciarygovukwp-contentuploads201610aslam-and-farrar-v-uber-reasons-20161028pd bull October 2016 bull Ruled that drivers were entitled to holiday pay paid rest breaks and the national minimum

wage bull Reclassified as workers rather than ldquoself-employed contractorsrdquo as Uber argued

Reasons for the ruling bull ldquoIt is not real to regard Uber as working lsquoforrsquo drivers and that the only sensible interpretation

is that the relationship is the other way around Uber runs a transportation business The drivers provide the skilled labour through which the organisation delivers its services and earns its profitsrdquo This is based on the fact that

o Uber interviews and recruits drivers o Uber controls the key information and excludes the driver from it o Uber requires drivers to accept trips andor not to cancel trips and enforces the

requirement by logging off drivers who breach those requirements o Uber sets the (default) route o Uber imposes numerous conditions on drivers (such as the limited choice of

acceptable vehicles) instructs drivers as to how to do their work and in numerous ways controls them in the performance of their duties7

o Uber determines issues about rebates sometimes without even involving the driver whose remuneration is liable to be affected

o Uber accepts the risk of loss which if the drivers were genuinely in business on their own account would fall upon them

o Uber handles complaints by passengers including complaints about the driver o Uber reserves the power to amend the driversrsquo terms unilaterally

In all these respects Expert Logistic drivers are similar to Uber

Dewhurst v CitySprint UK httpwwwbbccouknewsbusiness-38534524 httpswwwwjmcouknewsjanuary--employment-law-bulletindewhurst-v-city-sprint-uk bull 6th January 2017 bull Tribunal found that Maggie Dewhurst a courier for CitySprint should be classed as a worker

rather than self-employed bull Dewhurst brought a claim before the London Employment tribunal in respect of 2 daysrsquo

unpaid holiday pay bull She would thus be entitled to basic rights including holiday and sick pay and minimum

wage bull Dewhurst said ldquoWe spend all day being told what to do when to do it and how to do it

Wersquore under their controlrdquo

7 Appendix 3 Fines Schedules

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 2: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

SUMMARY This submission concerns a group of workers who are being exploited and highlights issues relevant to the questions concerning the status and rights of the self-employed the balance of benefits between the worker and employer the protection of these workers the evidence of unfair treatment the use of zero-hour contracts and the role of trade unions

Workers from AO Worldrsquos subsidiary company Expert Logistics came to see me following the court ruling on Aslam Farrar and Others v Uber AO World plc is an online retailer (aocom) specialising in household appliances It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index The logistics arm of the company is run by Expert Logistics which is a fully owned subsidiary of AO World Expert Logistics provide 2 man home delivery crews 7 days a week 7am to 7pm to deliver products for aocom and more recently expanded to other companies including Next Currys John Lewis and Argos1 The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered to the customerrsquos home

The drivers are classified as self-employed but this does not appear to be the reality Furthermore there is a culture of bullying and inconsistent health amp safety requirements Drivers are threatened with legal action if they complain about the fee reductions or excess damage payments Expert Logistics know that drivers cannot afford to pay tribunal and small claims court fees Whilst drivers are fined and sent home if they forget their boots or hi-vis clothing there are no safety nets in the Spennymoor depot and drivers have been injured by falling delivery items

The fundamental business model used by AO World is to offload the financial risk onto the worker ndash in this case the delivery drivers Any disputes with the customer damage to the truck or delivery item are charged to the delivery driver regardless of who is at fault There is a pound3000 excess on any damages to the vehicles and this is payable by the delivery driver not Expert Logistics So for example when a falling tree hit an Expert Logistics truck last year the driver was considered liable for paying the pound3000 insurance costs despite not being at fault ndash he will work for 365 hours just to pay this bill The economic theory is the profits go to the one who bears the financial risk in AO World the shareholders receive the profits and the workers bear the risk

By designating the drivers as self-employed AO makes it impossible to secure trade union recognition By treating them as self-employed AO World gets round all employment protection legislation payment of the minimum wage and statutory entitlements to holiday sick and maternity pay and pension contributions

The difference between the public statements made by the company and the treatment of their workers is stark The system of arbitrary fines is akin to that used in privately owned mines at the end of the nineteenth century

Reasons why the classification of self-employment should be challenged

bull Expert Logistics sets the daily route and the drivers are not paid any extra if the route takes longer than the set hours predicted by Expert Logistics

1 Expert Logistics deliver to buildings which Argos drivers refuse to deliver eg flats

bull The delivery drivers have to wear a set uniform2 and use branded vans owned by Expert Logistics3

bull Expert Logistics imposes strict conditions4 on drivers and fines for non-delivery torn labels incorrect codes et cetera5

bull In the 2 man crews one is designated as Crew Leader and he receives the full pay for both drivers minus any fee reductions and is responsible for passing on the wages to their assigned crew mate

bull Contrary to Section 7 of the Contract the driver cannot provide an alternative driver if they are unable to work and they are assigned a crew mate ndash they have no option who they work with Expert Logistics assign another driver and charge a fee for non-attendance (even if sick) In Spennymoor a driver who falls ill during a shift is charged pound50 in Slough it is pound150

bull Invoices are generated by Expert Logistics not the driver bull AO WorldExpert Logistics determines complaints by the customers The driver is asked for a

statement but there is no investigation to check the veracity of the customerrsquos claim It is rare that the damage costs are not passed on to the driver

bull Drivers who work for RFG Greatholder amp Sons (sub-contractor to Expert Logistics) are not allowed to be employed by Expert Logistics due to a ldquogentlemanrsquos agreementrdquo This is contrary to the contractual term stating that drivers are free to provide services to any third party6

bull Expert Logistics frequently use the full legal hours a driver can work making any alternative employment impossible

March 2017

2 Appendix 2 Example Contract Section 6

3 Appendix 2 Example Contract Section 11

4 Appendix 2 Example Contracts Examples Sections 15 17 and 23

5 Appendix 3 Fines Schedule

6 Appendix 2 Example Contract Section 3

Appendix 1 Delivery Driver Statements on Export Logistics Driver A

ldquoI have had a driver phone me today regarding an accident that his team mate had (He wasnt even in the truck at the time) He has been told to pay half the damages or get effectively fired He has also been told that if the other driver refuses to pay or leaves he will be responsible for the entire amountrdquo ldquoThe hourly rate offered is misleading as that rate is per two man crew So it works out to pound900(weekdays) - pound1025(weekends) per hour per person But what they do not tell you is that you are given a fixed amount hours per route you do So if you are given 10 hours to do a route and it takes you 11 hours you will still get paid for only 10 hours Okay there is a flip side if you do the route in 9 hours you will still be paid for 10 hours but that is rare Also what they do not tell you is that you have an excess of pound300000 if you have an accident or for any damage claims against you The excess is taken at 10 of your team weekly wages until paid in full In effect a person could lose up to 20 of his weekly wages so that pound900 per can easily become pound720 per hour

At Spennymoor depot the 35 ton drivers are paid at pound825 per hour weekdays and pound925 per hour at the weekends and bank holidays Any damages to be paid back can therefore take you below the minimum wage Of course if you work for Ray [Greatholder amp Sons] you only get pound700 Sorry this is long winded reply but the only way I can explain it all Also to add drivers do not get sick pay holiday etc which employees in the offices of Expert logisticsAOcom do get I must also add that 75ton drivers get an extra pound100 per hour above the 35 ton rates

ldquoOne of the drivers was charged pound670 to replace a new floor The large American fridge had caused a tiny tear in the carpet but there was already substantial damage to the floor ndash there was nails sticking through itrdquo

In response to John Robertsrsquo quote (ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo)

ldquoWith regards to water there is water at the depot You have to ask for it (not always available) Now and again you do get cans of fizzy drinks But no there is not a member of staff who puts two bottles in each truckrdquo

ldquoI have had another driver phone me today regarding an accident that his team mate had He has been told to pay half the damages or get effectively fired He has also been told that if the other driver refuses to pay or leaves he will be responsible for the entire amount I talked to the manager to say that this wasnrsquot fair and he told me something interesting They pay a solicitors firm a monthly fee of thousands of pounds to make sure they stay ldquojust within the lawrdquo and that no one has won in court against them (drivers taking Expert to court) The solicitors say they guarantee a win in any court case the solicitors firm is liable for the cost They [Expert Logistics] donrsquot pursue damages in a court when drivers leave as they know it would get thrown out of court They know if they lost one case the whole rotten system would collapse

Spennymoor Delivery Driver Statement

Mr A was billed pound300000 for damage done to the truck he was driving when it was struck by a falling tree He has been paying off the damage for over a year now at 5 of his wages Again told that he either pays for the damage or loses his job even though it was not his fault He had already passed the tree when it fell over striking the box of the van but was billed for the damage to the truck even though he was delivering for Expert Logistics The farmer who owned the land refused to admit to any fault as well When he protested about the bill he was told by the manager that it was tax deductible

Former delivery driver and Training Officer

We were regularly sent to London to deliver training Travel expenses (time travelling and fuel) were not paid and although we were reimbursed for hotels there could be a delay of weeks ndash which is a long time to wait when paying for expensive hotels in London So we were just paid for the hours spent training but we could spend as much time again travelling Often because we werenrsquot paid for the full hours we were away from home we ended up driving to London sleeping in the truck for a couple of hours delivering 12 hours of training and driving back to the North East

Ex-driver

Damage was caused to my truck due to the floods ndash the manager told me ldquojust take the hitrdquo ndash The hit was pound1200 and it wasnrsquot even my fault There should be a built in company insurance ndash why are we taking the risk when we arenrsquot getting paid enough to begin with

Current driver

Irsquove worked there for 4 years and we had a slight pay rise since the Uber case ndash they are obviously trying to stop us wanting to take them to court too Itrsquos not fair as the office staff get holiday sick pay ndash its discrimination as its men who arenrsquot getting those benefits yet we are the ones most likely to be hurt There is a low volume of calls at the moment ndash I am only getting two days so itrsquos a struggle supporting a family and paying a mortgage I canrsquot get another job though as I have to be available or I will lose this one If you say you cannot work a particular day they wonrsquot offer you any work for at least a week afterwards

Another delivery driver

We work in two man teams One person is considered to be the crew leader and is paid by Expert logistics for work done The crew leader then pays his crew mate from this payment All damages fines etc are charged to crew leader It is Expert LogisticsAO way of distancing themselves from any damages

In this case the crew leader did not have a partner at the time to work with but was assigned another person to work with by Expert logistics This person was from a different crew number -His partner (crew leader) was off work after hurting his back No sick pay I must add Unfortunately this crew member had an accident whilst working on the Crew Leaderrsquos

number The Crew Leader was not even in the truck when the accident occurred but has been charged a bill of pound96704 This amount will be taken off of the Crew Leaderrsquos wages before it get to his bank account The Crew Leader has been told that he has to pursue the other driver for the amount owing Also as he is self-employed it is not Expert logistics problem The Crew Leader has also been told that if he refuses to pay he will lose his job

Unfortunately the Crew Leader cannot afford to lose 10 wages every week and is starting a new job next week He has effectively been constructively dismissed Believe or not the driver who had the accident has gotten away without paying the damages as the Crew Leader has left The damages stay with the Crew Leaderrsquos crew number which is his crew number Strangely Expert Logistics will not be pursuing the Crew Leader legally

This is something that happens all the time at Expert Logistics

Glassdoor Employee Review

Pros

Doesnt Recommend

Negative Outlook

Its a job thats about it

Cons Crap wage really really long hours Mlich you are not paid for if a route takes

14 hours to actually do and they say you can do it in 8hrs 40 min you get paid for 8hrs 40 min At Heyvood Depot you have to unload all old appliances at end of a morning run and afternoon run Mlich they say you are getting paid

for Strange how at crew you just leave the van full and they do it But you get the same rate You get told your working at 11 pm at night by text then they cancel it You are forced to 1MJrk 4 TRAINING days where nobody trains anyone the TRAINER just wants the work done as quickly as possible

sometimes you can 1MJrk 12+ hour days and during training you receive the princely sum of pound60 a day how anyone on here can call this company a good place to work is unbelievable it must be management leaving good reviews as it cant possibly be the drivers The throughput of drivers is unbelievable

too If you fail to appear for work they fine you pound50 and stand you down for four days the four days happen to always coincide with the training days so they have plenty of cheap labour to replace you you are forced to take on the responsibility of paying your co drivers wages all i Vas informed Vas that i was a lead driver and he was the co driver wasnt till we got paid that i understood

that he worked for me not them absolute joke Another way of getting yourself

into trouble with the tax man and laziness on Expert logistics part as they cant be bothered to do both the Nages If you NOrk for this company you will regret

it i know i did

Show Less

Advice to Management Stop lying to everyone

2132017 Epertlogislics Relieos I Glassdoorcouk

you to-ask ydu to nip Birmingham to just pick a few drops up as another crew Id behind but if you do it your only getting in around 9pm after starting around 430am but not getting paid the full hours your out but if you say no the office they are funny with you so you better say good bye to your next few days work The manger is a joke after emailing him asking why so many shifts are getting cancelled Ive got bills to pay I cant afford to keep having time off only work 2-3 days a week he replied with just Ill take it youve quit then No explanation so that sums up how professionally its run so after that I quit not being treated like a mug

So all that summed up Long days no respect and do anything to take money off you most truthful review about expert logistics on here

Show Less

Advice to Management At least show some respect to your drivers that are out for over 12 hours a day If you charge drivers for vehicle damaged let them know you did do for the 1st month I was there but after that I only found out in my pay slip that money was constantly coming out

Also when cancelling crews shifts Nhy do you not let the driver know instead of just not texting them a time to be in even though you said the morning before theyll be working Give them a reason why they iOnt be earning money that day

Show Less

Helpful (3)

2132017 8q)ert Logistics Re-iew I Glassdoorcouk

Pros There is no pros to this company they use you up and chuck you out Have no concern for your health of safety And talk and treat you like crap

Cons Over vvork you under pay you treat you like crap on a daily basis dont care for you safety or health if you dont dance too there tune out the door you go best thing Ive done in this company was to leave

Advice to Management Stay safe be cause the way you treat your staff Nill and is going to get you into a lot of trouble Best advice is get yourself some training in how to respect your staff

Helpful (1)

Ray Greatholder amp Sons case study (RGampS) AOCOM

RGampS provide two team drivers for Expert Logistics (EL) (sub-contractor)

Key issues

Pay

bull Lower pay rate than the contractor (EL)

RGampS - pound750ph Expert Logistic drivers pound897ph

bull Working for less than national living wage as drivers are not paid for hours they work over the set hours so if a delivery takes longer than RGampS estimate it is unpaid (eg frequently time taken to reach properties or to deliver goods is incorrect)

bull Unfair clause preventing drivers from approach EL direct RGampS have a lsquogentlemanrsquos agreementrsquo that drivers working for RGampS will not be employed directly by EL if they leave RGampS This means that they are stuck earning a lower wage for the same role

bull Drivers have to be available for shifts and therefore cannot take on work elsewhere ndash but are not guaranteed a set number of shifts ndash difficult to manage billsrent or apply for tax creditsuniversal credit

Deductions from pay

bull No proof of costs justifying the reduction is provided

bull Once one lsquofinersquo is paid another is added to keep people working for them in order to pay their lsquodebtsrsquo

bull Lack of information on the deductions from the pay (eg invoice just shows a code and the amount deducted)

bull Told that the deduction is 10 but it is frequently up to 20

Accidents

In his first week he hit a car and was charged bill of pound606 ndash this was repaid by deductions from his pay Then he was given a second pound913 bill for same incident ndash when he queried this he was then told that pound606 was the cost of the hire car and the pound913 bill for the repairs

Recently his van skidded on the ice into a ditch on a steep hill ndash he was injured and caused damage to the van He tried to claim lsquopay replacementrsquo through the insurance and was told that he had to be sick for two weeks before he could claim He has paid pound10pm for the insurance with no details of the policy He could not afford two weeks without pay and therefore had to return to work injured

Threatening text messages

When he requested information about the deductions and suggested that he would visit a solicitor her was sent the following text message

Attached Copy of lsquoinvoicesrsquo showing deductions and no information on why the deductions are made

RfClIVED 2 o FEB 2017 ~~~~~~~-

VMS(oS1~0

~ etGT-35-=t

StOiieacre Motor Group

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Z809180S7A003 CLI P GRILLE 400 218 ~ca 000 Y ZK091~06S9A003 CLXP B BtrldPER OO 2 17 JIJICS 000

ZH091301B0400 CLIP WI5Q 1000 1 55 JaeB 000 X ZB091S03S7AOOS CLI~ Ill GJIILLE 200 Z 18 lACB 000 1x zaOllOI~r0900ZA ra BllMPBSl I ~00 294 35 ~CB 765

1

VMS (FLEET middot N middot~MmiddotN LTD p

j A1PROVED

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22 0 S

12 89 S l421

21 $ 0 78 I 91 80 81 15Us

872 S a se s

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2BG 70 SI 1S0$1 II

LSnl lfSE01 SITlPBS--- bull ~S09 DCB 000

~ bull c1- 1 I 6-511-I fY 1-1 0 ~ middot middot rbull _ middot ramiddot a-imiddot ~ middot middot~ ---- ----

PU1ta SlS13 middot middot middotmiddotmiddotbull frJ bull ~- r bull middot lfQt 1167 04 Sach~e Omiddotoo --middot middot~ ~Orl)d~~ middotF-1~1fCD~(AO 1 341 VAT 19341-

Lllboux 449 91 middotmiddot= I loial 1160 45_1 Slhlet () 00 middotmiddotI - -middotmiddot ---

_-deg~- J o~o L_ - L_ Paid Owing

000 ll60 45

CD V rrS l bS7C6 IZX P7 7- - 17

Appendix 2 Example Contract

9) In order co ensure satisfaction for Experts cust0mers and following a reqesr by Expert to proYide services which you have accepted if you are unable to pnlMde those services whemer by reason of illnessinjury of yourself or third parties or otilenorise you must give as much notice as possible Should Expert incur additional costs as a restit of your failure to A provide services that have been agreed we reserve the right to seek corpersation from ll you

I 0) It is agreed that you are not an employee of Expert and will be responsible for n-aking the appropriate PAYE deductions for tax and national insurance contributions from the money which you pay to other crew members together with your own income taX deductions and national insurance You agree to indemnify Expert in respect of any claims that may be made by HM Revenue and Cuscoms for any failure to do so

11) You will be provided with a fully fuelled Expert delivery vehicle to carry out your deliveries Expert agrees to pay you for each daily route which is calculated using the rate for each depot This amount will be agreed at the time of Expert requesting the provision of services but is subject to adjustment under clause 18 Expert operaces a self-billing procedure under which it will endeavour to make payment to you by the Monday of the week following the week in which the relevant delivery is completed You agree co enter a self-billing agreement in such form as Expert requires from time to time The current forms required are at Appendix I if VAT registered or Appendix 2 if not VAT registered lffurther expenses are incurred or additional services are carried otrt on behalf of Expert men a Additional Payment Claim Sheet (Appendix 3) will need to be completed and submitted before a payment is made and payment will only be made if the expenses or additional services have been authorised in advance by the transport or an outbase manager We will deduct a deposit of pound100 which will be taken from your first two weekly invoices for the Expert property you will be given Please sign Appendix 4 enclosed confirming your acceptance of these items On termination of this contract by either party this deposit will be refunded to you in full providing that both the phone and HHT device are in good condition when they are returned Without affecting any other rights we have we may deduct from that deposit any losses we suffer as a result of your breach of this agreement

12) Driver Bank details must be completed using Appendix 5 to enable payment of your fees However should any of your details or circumstances change thereafter then please inform the Company as soon as possible using Appendix 6

13) You will indemnify Expert for all costs incurred in connection with the provision of the services as a result of any deliberate or negligent act or omission of yours andor your crew member(s) This includes vehicle damage to Expert vehicles damaged lost or stolen products or property third party property damage including vehicle damage and all other damage to persons and property whatsoever Expert will issue a debit note for any costs mat you need to pay Expert and (without prejudice to any other remedies it has) may deduct these from any payment due to you

14) Expert carries out monitoring in order to protect the interests of the Company and other road users and its customers Such recording will take place by way of a video camera within the cab another within the box itself one outside the vehicle facing forward and one at tile rear of the vehicle These cameras are operational at all times whilst the vehicle is in your possession The purpose of the monitoring is to a Check the quantity and quality of services provided by you as one of its subshy

contractors b Safeguard you

c Check compliance with all applicable laws including laws relating to Health and Safety

d Assist in dealing with customer complaints

The information collected will be viewed routinely by the Company for these purposes

Expert has carried out an assessment to ensure that the way in which it records or processes this information is lawful and fair to you and other sub-contraCtOrs It is satisfied that the monitoring that will take place is fair and will not intrude into your and other subshycontractors private lives Any adverse impact on any sub-contractor is considered by the Company to be justified by the benefits to the Company customers and other subshycontractors The Company is satisfied that there is no other way in which the Company can reasonably achieve the purposes set out above Nevertheless if you have any concern about the monitoring you should report them in writing to the Expert Transport Department

By signing this letter you are confirming you understand and accept and agree that the Company may undertake this monitoring and that you will not tamper with or otherwise interiere with the proper operation of the monitoring equipment

15) Under no circumstances must Experts vehicles uniforms or telephones be used for any business other than that directly associated with the delivery of services for Expert

16) You must (and muse ensure that your crew member(s) and any ocher person(s) you use to provide the services under this agreement) comply with Experts customer services policies and procedures at all times

17) You agree to and understand the Substance Misuse Policy by signing Appendix 7 You must ensure that your crew members and any other persons you use to provide the services under this agreement comply with this policy at all times

18) Your fees will be subject to reduction as set out in Appendix 8 in the event that you fail to provide your services in accordance with our requirements From time to time we may amend Appendix 8 (both as to the requirements and the fee reductions) and the amendments will be effective in respect of all services provided by you after the amendments have been notified to you

19) Neither you nor any of the personnel you use to perform the services may enter into any binding contract or other commitment on behalf of Expert nor make any representations or give any warranties or guarantees in relation to the business of the Company or to goods or services supplied by it nor incur any liability whatsoever on behalf of Expert

20) This agreement may be terminated by either party by giving one weeks notice in writing to the other or by Expert with immediate effect if you (or any of your personnel) commit a material breach of any of its terms or of the terms of any of the policies andor procedures referred to in it

21) Following termination by either party your final payment (subject to deduction of any monies due to us) will be paid 28days after termination

22) All information provided to you by Expert relating to customers and the orders for goods placed by customers is strictly confidential You must only use (and you must

expert logistics

ensure that your mates employees and sub-contractors only use) that information for the purposes of this agreement You must not disclose (and you must ensure your mates employees and subcontractors do not disclose) that information to any third parcy unless you (or they) are required by law to do so You must comply (and you must ensure your mates employees and sub-contractors comply) with the provisions of the Data Protection Act 1998 and all other applicable legislation and codes of practice in relation to that information and its processing

23) You agree that neither you nor any of the personnel you use to carry out the services will provide any other services to any customer of Expert apart from those services

that you have agreed with Expert to provide to that customer In particular but without limitation neither you nor any of your personnel shall agree to provide any scrap removal or installation services for a customer unless these have been agreed beforehand by Expert If a customer requires the provision of services that are not in accordance with the details agreed by you with Expert you (or your personnel) must refer the matter to the Contact Centre for Expert to agree those services with and take payment from the customer before you (or your personnel) provide those services Neither you nor any of your personnel shall accept cash or any other payment from a customer for services provided All payments must be made directly to Expert by the customer

Yours sincerely for and on behalf of Expert Logistics Limited

Signed

Print name

Print position

Date

I have read and understood the attached letter and acknowledge and agree its terms

Crew name

SIGNED

DATE

Appendix 3 Fines Schedule

Appendix 4 Similarity with other tribunal cases

Aslam Farrar and Others v Uber httpwwwbbccouknewsbusiness-37802386 httpswwwjudiciarygovukwp-contentuploads201610aslam-and-farrar-v-uber-reasons-20161028pd bull October 2016 bull Ruled that drivers were entitled to holiday pay paid rest breaks and the national minimum

wage bull Reclassified as workers rather than ldquoself-employed contractorsrdquo as Uber argued

Reasons for the ruling bull ldquoIt is not real to regard Uber as working lsquoforrsquo drivers and that the only sensible interpretation

is that the relationship is the other way around Uber runs a transportation business The drivers provide the skilled labour through which the organisation delivers its services and earns its profitsrdquo This is based on the fact that

o Uber interviews and recruits drivers o Uber controls the key information and excludes the driver from it o Uber requires drivers to accept trips andor not to cancel trips and enforces the

requirement by logging off drivers who breach those requirements o Uber sets the (default) route o Uber imposes numerous conditions on drivers (such as the limited choice of

acceptable vehicles) instructs drivers as to how to do their work and in numerous ways controls them in the performance of their duties7

o Uber determines issues about rebates sometimes without even involving the driver whose remuneration is liable to be affected

o Uber accepts the risk of loss which if the drivers were genuinely in business on their own account would fall upon them

o Uber handles complaints by passengers including complaints about the driver o Uber reserves the power to amend the driversrsquo terms unilaterally

In all these respects Expert Logistic drivers are similar to Uber

Dewhurst v CitySprint UK httpwwwbbccouknewsbusiness-38534524 httpswwwwjmcouknewsjanuary--employment-law-bulletindewhurst-v-city-sprint-uk bull 6th January 2017 bull Tribunal found that Maggie Dewhurst a courier for CitySprint should be classed as a worker

rather than self-employed bull Dewhurst brought a claim before the London Employment tribunal in respect of 2 daysrsquo

unpaid holiday pay bull She would thus be entitled to basic rights including holiday and sick pay and minimum

wage bull Dewhurst said ldquoWe spend all day being told what to do when to do it and how to do it

Wersquore under their controlrdquo

7 Appendix 3 Fines Schedules

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 3: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

bull The delivery drivers have to wear a set uniform2 and use branded vans owned by Expert Logistics3

bull Expert Logistics imposes strict conditions4 on drivers and fines for non-delivery torn labels incorrect codes et cetera5

bull In the 2 man crews one is designated as Crew Leader and he receives the full pay for both drivers minus any fee reductions and is responsible for passing on the wages to their assigned crew mate

bull Contrary to Section 7 of the Contract the driver cannot provide an alternative driver if they are unable to work and they are assigned a crew mate ndash they have no option who they work with Expert Logistics assign another driver and charge a fee for non-attendance (even if sick) In Spennymoor a driver who falls ill during a shift is charged pound50 in Slough it is pound150

bull Invoices are generated by Expert Logistics not the driver bull AO WorldExpert Logistics determines complaints by the customers The driver is asked for a

statement but there is no investigation to check the veracity of the customerrsquos claim It is rare that the damage costs are not passed on to the driver

bull Drivers who work for RFG Greatholder amp Sons (sub-contractor to Expert Logistics) are not allowed to be employed by Expert Logistics due to a ldquogentlemanrsquos agreementrdquo This is contrary to the contractual term stating that drivers are free to provide services to any third party6

bull Expert Logistics frequently use the full legal hours a driver can work making any alternative employment impossible

March 2017

2 Appendix 2 Example Contract Section 6

3 Appendix 2 Example Contract Section 11

4 Appendix 2 Example Contracts Examples Sections 15 17 and 23

5 Appendix 3 Fines Schedule

6 Appendix 2 Example Contract Section 3

Appendix 1 Delivery Driver Statements on Export Logistics Driver A

ldquoI have had a driver phone me today regarding an accident that his team mate had (He wasnt even in the truck at the time) He has been told to pay half the damages or get effectively fired He has also been told that if the other driver refuses to pay or leaves he will be responsible for the entire amountrdquo ldquoThe hourly rate offered is misleading as that rate is per two man crew So it works out to pound900(weekdays) - pound1025(weekends) per hour per person But what they do not tell you is that you are given a fixed amount hours per route you do So if you are given 10 hours to do a route and it takes you 11 hours you will still get paid for only 10 hours Okay there is a flip side if you do the route in 9 hours you will still be paid for 10 hours but that is rare Also what they do not tell you is that you have an excess of pound300000 if you have an accident or for any damage claims against you The excess is taken at 10 of your team weekly wages until paid in full In effect a person could lose up to 20 of his weekly wages so that pound900 per can easily become pound720 per hour

At Spennymoor depot the 35 ton drivers are paid at pound825 per hour weekdays and pound925 per hour at the weekends and bank holidays Any damages to be paid back can therefore take you below the minimum wage Of course if you work for Ray [Greatholder amp Sons] you only get pound700 Sorry this is long winded reply but the only way I can explain it all Also to add drivers do not get sick pay holiday etc which employees in the offices of Expert logisticsAOcom do get I must also add that 75ton drivers get an extra pound100 per hour above the 35 ton rates

ldquoOne of the drivers was charged pound670 to replace a new floor The large American fridge had caused a tiny tear in the carpet but there was already substantial damage to the floor ndash there was nails sticking through itrdquo

In response to John Robertsrsquo quote (ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo)

ldquoWith regards to water there is water at the depot You have to ask for it (not always available) Now and again you do get cans of fizzy drinks But no there is not a member of staff who puts two bottles in each truckrdquo

ldquoI have had another driver phone me today regarding an accident that his team mate had He has been told to pay half the damages or get effectively fired He has also been told that if the other driver refuses to pay or leaves he will be responsible for the entire amount I talked to the manager to say that this wasnrsquot fair and he told me something interesting They pay a solicitors firm a monthly fee of thousands of pounds to make sure they stay ldquojust within the lawrdquo and that no one has won in court against them (drivers taking Expert to court) The solicitors say they guarantee a win in any court case the solicitors firm is liable for the cost They [Expert Logistics] donrsquot pursue damages in a court when drivers leave as they know it would get thrown out of court They know if they lost one case the whole rotten system would collapse

Spennymoor Delivery Driver Statement

Mr A was billed pound300000 for damage done to the truck he was driving when it was struck by a falling tree He has been paying off the damage for over a year now at 5 of his wages Again told that he either pays for the damage or loses his job even though it was not his fault He had already passed the tree when it fell over striking the box of the van but was billed for the damage to the truck even though he was delivering for Expert Logistics The farmer who owned the land refused to admit to any fault as well When he protested about the bill he was told by the manager that it was tax deductible

Former delivery driver and Training Officer

We were regularly sent to London to deliver training Travel expenses (time travelling and fuel) were not paid and although we were reimbursed for hotels there could be a delay of weeks ndash which is a long time to wait when paying for expensive hotels in London So we were just paid for the hours spent training but we could spend as much time again travelling Often because we werenrsquot paid for the full hours we were away from home we ended up driving to London sleeping in the truck for a couple of hours delivering 12 hours of training and driving back to the North East

Ex-driver

Damage was caused to my truck due to the floods ndash the manager told me ldquojust take the hitrdquo ndash The hit was pound1200 and it wasnrsquot even my fault There should be a built in company insurance ndash why are we taking the risk when we arenrsquot getting paid enough to begin with

Current driver

Irsquove worked there for 4 years and we had a slight pay rise since the Uber case ndash they are obviously trying to stop us wanting to take them to court too Itrsquos not fair as the office staff get holiday sick pay ndash its discrimination as its men who arenrsquot getting those benefits yet we are the ones most likely to be hurt There is a low volume of calls at the moment ndash I am only getting two days so itrsquos a struggle supporting a family and paying a mortgage I canrsquot get another job though as I have to be available or I will lose this one If you say you cannot work a particular day they wonrsquot offer you any work for at least a week afterwards

Another delivery driver

We work in two man teams One person is considered to be the crew leader and is paid by Expert logistics for work done The crew leader then pays his crew mate from this payment All damages fines etc are charged to crew leader It is Expert LogisticsAO way of distancing themselves from any damages

In this case the crew leader did not have a partner at the time to work with but was assigned another person to work with by Expert logistics This person was from a different crew number -His partner (crew leader) was off work after hurting his back No sick pay I must add Unfortunately this crew member had an accident whilst working on the Crew Leaderrsquos

number The Crew Leader was not even in the truck when the accident occurred but has been charged a bill of pound96704 This amount will be taken off of the Crew Leaderrsquos wages before it get to his bank account The Crew Leader has been told that he has to pursue the other driver for the amount owing Also as he is self-employed it is not Expert logistics problem The Crew Leader has also been told that if he refuses to pay he will lose his job

Unfortunately the Crew Leader cannot afford to lose 10 wages every week and is starting a new job next week He has effectively been constructively dismissed Believe or not the driver who had the accident has gotten away without paying the damages as the Crew Leader has left The damages stay with the Crew Leaderrsquos crew number which is his crew number Strangely Expert Logistics will not be pursuing the Crew Leader legally

This is something that happens all the time at Expert Logistics

Glassdoor Employee Review

Pros

Doesnt Recommend

Negative Outlook

Its a job thats about it

Cons Crap wage really really long hours Mlich you are not paid for if a route takes

14 hours to actually do and they say you can do it in 8hrs 40 min you get paid for 8hrs 40 min At Heyvood Depot you have to unload all old appliances at end of a morning run and afternoon run Mlich they say you are getting paid

for Strange how at crew you just leave the van full and they do it But you get the same rate You get told your working at 11 pm at night by text then they cancel it You are forced to 1MJrk 4 TRAINING days where nobody trains anyone the TRAINER just wants the work done as quickly as possible

sometimes you can 1MJrk 12+ hour days and during training you receive the princely sum of pound60 a day how anyone on here can call this company a good place to work is unbelievable it must be management leaving good reviews as it cant possibly be the drivers The throughput of drivers is unbelievable

too If you fail to appear for work they fine you pound50 and stand you down for four days the four days happen to always coincide with the training days so they have plenty of cheap labour to replace you you are forced to take on the responsibility of paying your co drivers wages all i Vas informed Vas that i was a lead driver and he was the co driver wasnt till we got paid that i understood

that he worked for me not them absolute joke Another way of getting yourself

into trouble with the tax man and laziness on Expert logistics part as they cant be bothered to do both the Nages If you NOrk for this company you will regret

it i know i did

Show Less

Advice to Management Stop lying to everyone

2132017 Epertlogislics Relieos I Glassdoorcouk

you to-ask ydu to nip Birmingham to just pick a few drops up as another crew Id behind but if you do it your only getting in around 9pm after starting around 430am but not getting paid the full hours your out but if you say no the office they are funny with you so you better say good bye to your next few days work The manger is a joke after emailing him asking why so many shifts are getting cancelled Ive got bills to pay I cant afford to keep having time off only work 2-3 days a week he replied with just Ill take it youve quit then No explanation so that sums up how professionally its run so after that I quit not being treated like a mug

So all that summed up Long days no respect and do anything to take money off you most truthful review about expert logistics on here

Show Less

Advice to Management At least show some respect to your drivers that are out for over 12 hours a day If you charge drivers for vehicle damaged let them know you did do for the 1st month I was there but after that I only found out in my pay slip that money was constantly coming out

Also when cancelling crews shifts Nhy do you not let the driver know instead of just not texting them a time to be in even though you said the morning before theyll be working Give them a reason why they iOnt be earning money that day

Show Less

Helpful (3)

2132017 8q)ert Logistics Re-iew I Glassdoorcouk

Pros There is no pros to this company they use you up and chuck you out Have no concern for your health of safety And talk and treat you like crap

Cons Over vvork you under pay you treat you like crap on a daily basis dont care for you safety or health if you dont dance too there tune out the door you go best thing Ive done in this company was to leave

Advice to Management Stay safe be cause the way you treat your staff Nill and is going to get you into a lot of trouble Best advice is get yourself some training in how to respect your staff

Helpful (1)

Ray Greatholder amp Sons case study (RGampS) AOCOM

RGampS provide two team drivers for Expert Logistics (EL) (sub-contractor)

Key issues

Pay

bull Lower pay rate than the contractor (EL)

RGampS - pound750ph Expert Logistic drivers pound897ph

bull Working for less than national living wage as drivers are not paid for hours they work over the set hours so if a delivery takes longer than RGampS estimate it is unpaid (eg frequently time taken to reach properties or to deliver goods is incorrect)

bull Unfair clause preventing drivers from approach EL direct RGampS have a lsquogentlemanrsquos agreementrsquo that drivers working for RGampS will not be employed directly by EL if they leave RGampS This means that they are stuck earning a lower wage for the same role

bull Drivers have to be available for shifts and therefore cannot take on work elsewhere ndash but are not guaranteed a set number of shifts ndash difficult to manage billsrent or apply for tax creditsuniversal credit

Deductions from pay

bull No proof of costs justifying the reduction is provided

bull Once one lsquofinersquo is paid another is added to keep people working for them in order to pay their lsquodebtsrsquo

bull Lack of information on the deductions from the pay (eg invoice just shows a code and the amount deducted)

bull Told that the deduction is 10 but it is frequently up to 20

Accidents

In his first week he hit a car and was charged bill of pound606 ndash this was repaid by deductions from his pay Then he was given a second pound913 bill for same incident ndash when he queried this he was then told that pound606 was the cost of the hire car and the pound913 bill for the repairs

Recently his van skidded on the ice into a ditch on a steep hill ndash he was injured and caused damage to the van He tried to claim lsquopay replacementrsquo through the insurance and was told that he had to be sick for two weeks before he could claim He has paid pound10pm for the insurance with no details of the policy He could not afford two weeks without pay and therefore had to return to work injured

Threatening text messages

When he requested information about the deductions and suggested that he would visit a solicitor her was sent the following text message

Attached Copy of lsquoinvoicesrsquo showing deductions and no information on why the deductions are made

RfClIVED 2 o FEB 2017 ~~~~~~~-

VMS(oS1~0

~ etGT-35-=t

StOiieacre Motor Group

SIDitGlti680CtJ0026S6 t23Z1202805 24022011 YY60tlJO t h middot~-11abull _orgt middotraquo-~bull~-_ ~ middotbull middotbullmiddot-i -~middot- middot t middot middot-middot bull-1 bull ~_a bull ~ -V bullbull bullmiddot ~r bulltI IKV~W~~bullwcT 1 middotmiddotbull 1 bulllt- bullbullmiddotbull ~middot bull tbull middot bull~ 19~middot11 ~ 1t -_ ~t-middot~ fbullCmiddottbull11t111acJbullbullbull

V0006~ VHS lJamp741fiampFID1K S POamp 24588

middot middot ~~ CltloU1Trr -~middot~ t4 ~middot J~~t~1~~middotrbull~degi~1middot~9att LaitYampampHmiddot middotmiddot~~- middotDate 11-tmiddot i~ fmiddot(0-litttUmiddoteutmiddot 1r Jdeg~iliniDui~ L__ 81110 I _ _ middot- --- l 7~0~~ _ 25012011 o oo

middot-middot middot middotiiiYImiddot bull ~bullmiddott)r11 iiiiamp~Sebull~middot_ middotmiddot~bullmiddot- bullmiddot middot middotmiddotmiddot middot1irtoimiddoti1rJ~11n1t~fiiilibullltnl(~-middot~lliiiimiddot middot middot~~1itllGlll V bull bullbull bull-bull middot bull ~middotmiddot c bullbull ~~- bullbull Pf~Y ~ ~ bullmiddot ~ 1 middot middot middotmiddotbulldeg 1 bullbull 1 bull7~ 1 ~ 1 ~A ill)I bull bull r

BOD Bodywork rapair aa per bull~tiaate Jgt6M bulla~nt materials BJIA Zo11lonmental Chargbull CJIR CAil CAllll 11Xl SUN ~ecb ampDd data methods Z801l140rroooo BEAK ra BUMPER R l00 1289 EACB 000

X ZR07119tr0901 99ACER l1R BIJIUgtER l 00 1421 EJU8 000 X Z801110ff0G21 GRILLE FR BOMPEa l 00 4721 JGCa ooo X ZB014100fP200 0 WIW R l00 49 78 ElltCS 0 00 X ZH016203T~OG11 laRROR ~LJSS 100 3980 ZACB 0 00 X zbull091BOsPA003 CLIP BVKiBR 7 00 2 17 ~B ooo

Z809180S7A003 CLI P GRILLE 400 218 ~ca 000 Y ZK091~06S9A003 CLXP B BtrldPER OO 2 17 JIJICS 000

ZH091301B0400 CLIP WI5Q 1000 1 55 JaeB 000 X ZB091S03S7AOOS CLI~ Ill GJIILLE 200 Z 18 lACB 000 1x zaOllOI~r0900ZA ra BllMPBSl I ~00 294 35 ~CB 765

1

VMS (FLEET middot N middot~MmiddotN LTD p

j A1PROVED

~ IEmiddot 1 I C 1 I 7 I

22 0 S

12 89 S l421

21 $ 0 78 I 91 80 81 15Us

872 S a se s

tsso ls 4 3~ S

2BG 70 SI 1S0$1 II

LSnl lfSE01 SITlPBS--- bull ~S09 DCB 000

~ bull c1- 1 I 6-511-I fY 1-1 0 ~ middot middot rbull _ middot ramiddot a-imiddot ~ middot middot~ ---- ----

PU1ta SlS13 middot middot middotmiddotmiddotbull frJ bull ~- r bull middot lfQt 1167 04 Sach~e Omiddotoo --middot middot~ ~Orl)d~~ middotF-1~1fCD~(AO 1 341 VAT 19341-

Lllboux 449 91 middotmiddot= I loial 1160 45_1 Slhlet () 00 middotmiddotI - -middotmiddot ---

_-deg~- J o~o L_ - L_ Paid Owing

000 ll60 45

CD V rrS l bS7C6 IZX P7 7- - 17

Appendix 2 Example Contract

9) In order co ensure satisfaction for Experts cust0mers and following a reqesr by Expert to proYide services which you have accepted if you are unable to pnlMde those services whemer by reason of illnessinjury of yourself or third parties or otilenorise you must give as much notice as possible Should Expert incur additional costs as a restit of your failure to A provide services that have been agreed we reserve the right to seek corpersation from ll you

I 0) It is agreed that you are not an employee of Expert and will be responsible for n-aking the appropriate PAYE deductions for tax and national insurance contributions from the money which you pay to other crew members together with your own income taX deductions and national insurance You agree to indemnify Expert in respect of any claims that may be made by HM Revenue and Cuscoms for any failure to do so

11) You will be provided with a fully fuelled Expert delivery vehicle to carry out your deliveries Expert agrees to pay you for each daily route which is calculated using the rate for each depot This amount will be agreed at the time of Expert requesting the provision of services but is subject to adjustment under clause 18 Expert operaces a self-billing procedure under which it will endeavour to make payment to you by the Monday of the week following the week in which the relevant delivery is completed You agree co enter a self-billing agreement in such form as Expert requires from time to time The current forms required are at Appendix I if VAT registered or Appendix 2 if not VAT registered lffurther expenses are incurred or additional services are carried otrt on behalf of Expert men a Additional Payment Claim Sheet (Appendix 3) will need to be completed and submitted before a payment is made and payment will only be made if the expenses or additional services have been authorised in advance by the transport or an outbase manager We will deduct a deposit of pound100 which will be taken from your first two weekly invoices for the Expert property you will be given Please sign Appendix 4 enclosed confirming your acceptance of these items On termination of this contract by either party this deposit will be refunded to you in full providing that both the phone and HHT device are in good condition when they are returned Without affecting any other rights we have we may deduct from that deposit any losses we suffer as a result of your breach of this agreement

12) Driver Bank details must be completed using Appendix 5 to enable payment of your fees However should any of your details or circumstances change thereafter then please inform the Company as soon as possible using Appendix 6

13) You will indemnify Expert for all costs incurred in connection with the provision of the services as a result of any deliberate or negligent act or omission of yours andor your crew member(s) This includes vehicle damage to Expert vehicles damaged lost or stolen products or property third party property damage including vehicle damage and all other damage to persons and property whatsoever Expert will issue a debit note for any costs mat you need to pay Expert and (without prejudice to any other remedies it has) may deduct these from any payment due to you

14) Expert carries out monitoring in order to protect the interests of the Company and other road users and its customers Such recording will take place by way of a video camera within the cab another within the box itself one outside the vehicle facing forward and one at tile rear of the vehicle These cameras are operational at all times whilst the vehicle is in your possession The purpose of the monitoring is to a Check the quantity and quality of services provided by you as one of its subshy

contractors b Safeguard you

c Check compliance with all applicable laws including laws relating to Health and Safety

d Assist in dealing with customer complaints

The information collected will be viewed routinely by the Company for these purposes

Expert has carried out an assessment to ensure that the way in which it records or processes this information is lawful and fair to you and other sub-contraCtOrs It is satisfied that the monitoring that will take place is fair and will not intrude into your and other subshycontractors private lives Any adverse impact on any sub-contractor is considered by the Company to be justified by the benefits to the Company customers and other subshycontractors The Company is satisfied that there is no other way in which the Company can reasonably achieve the purposes set out above Nevertheless if you have any concern about the monitoring you should report them in writing to the Expert Transport Department

By signing this letter you are confirming you understand and accept and agree that the Company may undertake this monitoring and that you will not tamper with or otherwise interiere with the proper operation of the monitoring equipment

15) Under no circumstances must Experts vehicles uniforms or telephones be used for any business other than that directly associated with the delivery of services for Expert

16) You must (and muse ensure that your crew member(s) and any ocher person(s) you use to provide the services under this agreement) comply with Experts customer services policies and procedures at all times

17) You agree to and understand the Substance Misuse Policy by signing Appendix 7 You must ensure that your crew members and any other persons you use to provide the services under this agreement comply with this policy at all times

18) Your fees will be subject to reduction as set out in Appendix 8 in the event that you fail to provide your services in accordance with our requirements From time to time we may amend Appendix 8 (both as to the requirements and the fee reductions) and the amendments will be effective in respect of all services provided by you after the amendments have been notified to you

19) Neither you nor any of the personnel you use to perform the services may enter into any binding contract or other commitment on behalf of Expert nor make any representations or give any warranties or guarantees in relation to the business of the Company or to goods or services supplied by it nor incur any liability whatsoever on behalf of Expert

20) This agreement may be terminated by either party by giving one weeks notice in writing to the other or by Expert with immediate effect if you (or any of your personnel) commit a material breach of any of its terms or of the terms of any of the policies andor procedures referred to in it

21) Following termination by either party your final payment (subject to deduction of any monies due to us) will be paid 28days after termination

22) All information provided to you by Expert relating to customers and the orders for goods placed by customers is strictly confidential You must only use (and you must

expert logistics

ensure that your mates employees and sub-contractors only use) that information for the purposes of this agreement You must not disclose (and you must ensure your mates employees and subcontractors do not disclose) that information to any third parcy unless you (or they) are required by law to do so You must comply (and you must ensure your mates employees and sub-contractors comply) with the provisions of the Data Protection Act 1998 and all other applicable legislation and codes of practice in relation to that information and its processing

23) You agree that neither you nor any of the personnel you use to carry out the services will provide any other services to any customer of Expert apart from those services

that you have agreed with Expert to provide to that customer In particular but without limitation neither you nor any of your personnel shall agree to provide any scrap removal or installation services for a customer unless these have been agreed beforehand by Expert If a customer requires the provision of services that are not in accordance with the details agreed by you with Expert you (or your personnel) must refer the matter to the Contact Centre for Expert to agree those services with and take payment from the customer before you (or your personnel) provide those services Neither you nor any of your personnel shall accept cash or any other payment from a customer for services provided All payments must be made directly to Expert by the customer

Yours sincerely for and on behalf of Expert Logistics Limited

Signed

Print name

Print position

Date

I have read and understood the attached letter and acknowledge and agree its terms

Crew name

SIGNED

DATE

Appendix 3 Fines Schedule

Appendix 4 Similarity with other tribunal cases

Aslam Farrar and Others v Uber httpwwwbbccouknewsbusiness-37802386 httpswwwjudiciarygovukwp-contentuploads201610aslam-and-farrar-v-uber-reasons-20161028pd bull October 2016 bull Ruled that drivers were entitled to holiday pay paid rest breaks and the national minimum

wage bull Reclassified as workers rather than ldquoself-employed contractorsrdquo as Uber argued

Reasons for the ruling bull ldquoIt is not real to regard Uber as working lsquoforrsquo drivers and that the only sensible interpretation

is that the relationship is the other way around Uber runs a transportation business The drivers provide the skilled labour through which the organisation delivers its services and earns its profitsrdquo This is based on the fact that

o Uber interviews and recruits drivers o Uber controls the key information and excludes the driver from it o Uber requires drivers to accept trips andor not to cancel trips and enforces the

requirement by logging off drivers who breach those requirements o Uber sets the (default) route o Uber imposes numerous conditions on drivers (such as the limited choice of

acceptable vehicles) instructs drivers as to how to do their work and in numerous ways controls them in the performance of their duties7

o Uber determines issues about rebates sometimes without even involving the driver whose remuneration is liable to be affected

o Uber accepts the risk of loss which if the drivers were genuinely in business on their own account would fall upon them

o Uber handles complaints by passengers including complaints about the driver o Uber reserves the power to amend the driversrsquo terms unilaterally

In all these respects Expert Logistic drivers are similar to Uber

Dewhurst v CitySprint UK httpwwwbbccouknewsbusiness-38534524 httpswwwwjmcouknewsjanuary--employment-law-bulletindewhurst-v-city-sprint-uk bull 6th January 2017 bull Tribunal found that Maggie Dewhurst a courier for CitySprint should be classed as a worker

rather than self-employed bull Dewhurst brought a claim before the London Employment tribunal in respect of 2 daysrsquo

unpaid holiday pay bull She would thus be entitled to basic rights including holiday and sick pay and minimum

wage bull Dewhurst said ldquoWe spend all day being told what to do when to do it and how to do it

Wersquore under their controlrdquo

7 Appendix 3 Fines Schedules

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 4: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

Appendix 1 Delivery Driver Statements on Export Logistics Driver A

ldquoI have had a driver phone me today regarding an accident that his team mate had (He wasnt even in the truck at the time) He has been told to pay half the damages or get effectively fired He has also been told that if the other driver refuses to pay or leaves he will be responsible for the entire amountrdquo ldquoThe hourly rate offered is misleading as that rate is per two man crew So it works out to pound900(weekdays) - pound1025(weekends) per hour per person But what they do not tell you is that you are given a fixed amount hours per route you do So if you are given 10 hours to do a route and it takes you 11 hours you will still get paid for only 10 hours Okay there is a flip side if you do the route in 9 hours you will still be paid for 10 hours but that is rare Also what they do not tell you is that you have an excess of pound300000 if you have an accident or for any damage claims against you The excess is taken at 10 of your team weekly wages until paid in full In effect a person could lose up to 20 of his weekly wages so that pound900 per can easily become pound720 per hour

At Spennymoor depot the 35 ton drivers are paid at pound825 per hour weekdays and pound925 per hour at the weekends and bank holidays Any damages to be paid back can therefore take you below the minimum wage Of course if you work for Ray [Greatholder amp Sons] you only get pound700 Sorry this is long winded reply but the only way I can explain it all Also to add drivers do not get sick pay holiday etc which employees in the offices of Expert logisticsAOcom do get I must also add that 75ton drivers get an extra pound100 per hour above the 35 ton rates

ldquoOne of the drivers was charged pound670 to replace a new floor The large American fridge had caused a tiny tear in the carpet but there was already substantial damage to the floor ndash there was nails sticking through itrdquo

In response to John Robertsrsquo quote (ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo)

ldquoWith regards to water there is water at the depot You have to ask for it (not always available) Now and again you do get cans of fizzy drinks But no there is not a member of staff who puts two bottles in each truckrdquo

ldquoI have had another driver phone me today regarding an accident that his team mate had He has been told to pay half the damages or get effectively fired He has also been told that if the other driver refuses to pay or leaves he will be responsible for the entire amount I talked to the manager to say that this wasnrsquot fair and he told me something interesting They pay a solicitors firm a monthly fee of thousands of pounds to make sure they stay ldquojust within the lawrdquo and that no one has won in court against them (drivers taking Expert to court) The solicitors say they guarantee a win in any court case the solicitors firm is liable for the cost They [Expert Logistics] donrsquot pursue damages in a court when drivers leave as they know it would get thrown out of court They know if they lost one case the whole rotten system would collapse

Spennymoor Delivery Driver Statement

Mr A was billed pound300000 for damage done to the truck he was driving when it was struck by a falling tree He has been paying off the damage for over a year now at 5 of his wages Again told that he either pays for the damage or loses his job even though it was not his fault He had already passed the tree when it fell over striking the box of the van but was billed for the damage to the truck even though he was delivering for Expert Logistics The farmer who owned the land refused to admit to any fault as well When he protested about the bill he was told by the manager that it was tax deductible

Former delivery driver and Training Officer

We were regularly sent to London to deliver training Travel expenses (time travelling and fuel) were not paid and although we were reimbursed for hotels there could be a delay of weeks ndash which is a long time to wait when paying for expensive hotels in London So we were just paid for the hours spent training but we could spend as much time again travelling Often because we werenrsquot paid for the full hours we were away from home we ended up driving to London sleeping in the truck for a couple of hours delivering 12 hours of training and driving back to the North East

Ex-driver

Damage was caused to my truck due to the floods ndash the manager told me ldquojust take the hitrdquo ndash The hit was pound1200 and it wasnrsquot even my fault There should be a built in company insurance ndash why are we taking the risk when we arenrsquot getting paid enough to begin with

Current driver

Irsquove worked there for 4 years and we had a slight pay rise since the Uber case ndash they are obviously trying to stop us wanting to take them to court too Itrsquos not fair as the office staff get holiday sick pay ndash its discrimination as its men who arenrsquot getting those benefits yet we are the ones most likely to be hurt There is a low volume of calls at the moment ndash I am only getting two days so itrsquos a struggle supporting a family and paying a mortgage I canrsquot get another job though as I have to be available or I will lose this one If you say you cannot work a particular day they wonrsquot offer you any work for at least a week afterwards

Another delivery driver

We work in two man teams One person is considered to be the crew leader and is paid by Expert logistics for work done The crew leader then pays his crew mate from this payment All damages fines etc are charged to crew leader It is Expert LogisticsAO way of distancing themselves from any damages

In this case the crew leader did not have a partner at the time to work with but was assigned another person to work with by Expert logistics This person was from a different crew number -His partner (crew leader) was off work after hurting his back No sick pay I must add Unfortunately this crew member had an accident whilst working on the Crew Leaderrsquos

number The Crew Leader was not even in the truck when the accident occurred but has been charged a bill of pound96704 This amount will be taken off of the Crew Leaderrsquos wages before it get to his bank account The Crew Leader has been told that he has to pursue the other driver for the amount owing Also as he is self-employed it is not Expert logistics problem The Crew Leader has also been told that if he refuses to pay he will lose his job

Unfortunately the Crew Leader cannot afford to lose 10 wages every week and is starting a new job next week He has effectively been constructively dismissed Believe or not the driver who had the accident has gotten away without paying the damages as the Crew Leader has left The damages stay with the Crew Leaderrsquos crew number which is his crew number Strangely Expert Logistics will not be pursuing the Crew Leader legally

This is something that happens all the time at Expert Logistics

Glassdoor Employee Review

Pros

Doesnt Recommend

Negative Outlook

Its a job thats about it

Cons Crap wage really really long hours Mlich you are not paid for if a route takes

14 hours to actually do and they say you can do it in 8hrs 40 min you get paid for 8hrs 40 min At Heyvood Depot you have to unload all old appliances at end of a morning run and afternoon run Mlich they say you are getting paid

for Strange how at crew you just leave the van full and they do it But you get the same rate You get told your working at 11 pm at night by text then they cancel it You are forced to 1MJrk 4 TRAINING days where nobody trains anyone the TRAINER just wants the work done as quickly as possible

sometimes you can 1MJrk 12+ hour days and during training you receive the princely sum of pound60 a day how anyone on here can call this company a good place to work is unbelievable it must be management leaving good reviews as it cant possibly be the drivers The throughput of drivers is unbelievable

too If you fail to appear for work they fine you pound50 and stand you down for four days the four days happen to always coincide with the training days so they have plenty of cheap labour to replace you you are forced to take on the responsibility of paying your co drivers wages all i Vas informed Vas that i was a lead driver and he was the co driver wasnt till we got paid that i understood

that he worked for me not them absolute joke Another way of getting yourself

into trouble with the tax man and laziness on Expert logistics part as they cant be bothered to do both the Nages If you NOrk for this company you will regret

it i know i did

Show Less

Advice to Management Stop lying to everyone

2132017 Epertlogislics Relieos I Glassdoorcouk

you to-ask ydu to nip Birmingham to just pick a few drops up as another crew Id behind but if you do it your only getting in around 9pm after starting around 430am but not getting paid the full hours your out but if you say no the office they are funny with you so you better say good bye to your next few days work The manger is a joke after emailing him asking why so many shifts are getting cancelled Ive got bills to pay I cant afford to keep having time off only work 2-3 days a week he replied with just Ill take it youve quit then No explanation so that sums up how professionally its run so after that I quit not being treated like a mug

So all that summed up Long days no respect and do anything to take money off you most truthful review about expert logistics on here

Show Less

Advice to Management At least show some respect to your drivers that are out for over 12 hours a day If you charge drivers for vehicle damaged let them know you did do for the 1st month I was there but after that I only found out in my pay slip that money was constantly coming out

Also when cancelling crews shifts Nhy do you not let the driver know instead of just not texting them a time to be in even though you said the morning before theyll be working Give them a reason why they iOnt be earning money that day

Show Less

Helpful (3)

2132017 8q)ert Logistics Re-iew I Glassdoorcouk

Pros There is no pros to this company they use you up and chuck you out Have no concern for your health of safety And talk and treat you like crap

Cons Over vvork you under pay you treat you like crap on a daily basis dont care for you safety or health if you dont dance too there tune out the door you go best thing Ive done in this company was to leave

Advice to Management Stay safe be cause the way you treat your staff Nill and is going to get you into a lot of trouble Best advice is get yourself some training in how to respect your staff

Helpful (1)

Ray Greatholder amp Sons case study (RGampS) AOCOM

RGampS provide two team drivers for Expert Logistics (EL) (sub-contractor)

Key issues

Pay

bull Lower pay rate than the contractor (EL)

RGampS - pound750ph Expert Logistic drivers pound897ph

bull Working for less than national living wage as drivers are not paid for hours they work over the set hours so if a delivery takes longer than RGampS estimate it is unpaid (eg frequently time taken to reach properties or to deliver goods is incorrect)

bull Unfair clause preventing drivers from approach EL direct RGampS have a lsquogentlemanrsquos agreementrsquo that drivers working for RGampS will not be employed directly by EL if they leave RGampS This means that they are stuck earning a lower wage for the same role

bull Drivers have to be available for shifts and therefore cannot take on work elsewhere ndash but are not guaranteed a set number of shifts ndash difficult to manage billsrent or apply for tax creditsuniversal credit

Deductions from pay

bull No proof of costs justifying the reduction is provided

bull Once one lsquofinersquo is paid another is added to keep people working for them in order to pay their lsquodebtsrsquo

bull Lack of information on the deductions from the pay (eg invoice just shows a code and the amount deducted)

bull Told that the deduction is 10 but it is frequently up to 20

Accidents

In his first week he hit a car and was charged bill of pound606 ndash this was repaid by deductions from his pay Then he was given a second pound913 bill for same incident ndash when he queried this he was then told that pound606 was the cost of the hire car and the pound913 bill for the repairs

Recently his van skidded on the ice into a ditch on a steep hill ndash he was injured and caused damage to the van He tried to claim lsquopay replacementrsquo through the insurance and was told that he had to be sick for two weeks before he could claim He has paid pound10pm for the insurance with no details of the policy He could not afford two weeks without pay and therefore had to return to work injured

Threatening text messages

When he requested information about the deductions and suggested that he would visit a solicitor her was sent the following text message

Attached Copy of lsquoinvoicesrsquo showing deductions and no information on why the deductions are made

RfClIVED 2 o FEB 2017 ~~~~~~~-

VMS(oS1~0

~ etGT-35-=t

StOiieacre Motor Group

SIDitGlti680CtJ0026S6 t23Z1202805 24022011 YY60tlJO t h middot~-11abull _orgt middotraquo-~bull~-_ ~ middotbull middotbullmiddot-i -~middot- middot t middot middot-middot bull-1 bull ~_a bull ~ -V bullbull bullmiddot ~r bulltI IKV~W~~bullwcT 1 middotmiddotbull 1 bulllt- bullbullmiddotbull ~middot bull tbull middot bull~ 19~middot11 ~ 1t -_ ~t-middot~ fbullCmiddottbull11t111acJbullbullbull

V0006~ VHS lJamp741fiampFID1K S POamp 24588

middot middot ~~ CltloU1Trr -~middot~ t4 ~middot J~~t~1~~middotrbull~degi~1middot~9att LaitYampampHmiddot middotmiddot~~- middotDate 11-tmiddot i~ fmiddot(0-litttUmiddoteutmiddot 1r Jdeg~iliniDui~ L__ 81110 I _ _ middot- --- l 7~0~~ _ 25012011 o oo

middot-middot middot middotiiiYImiddot bull ~bullmiddott)r11 iiiiamp~Sebull~middot_ middotmiddot~bullmiddot- bullmiddot middot middotmiddotmiddot middot1irtoimiddoti1rJ~11n1t~fiiilibullltnl(~-middot~lliiiimiddot middot middot~~1itllGlll V bull bullbull bull-bull middot bull ~middotmiddot c bullbull ~~- bullbull Pf~Y ~ ~ bullmiddot ~ 1 middot middot middotmiddotbulldeg 1 bullbull 1 bull7~ 1 ~ 1 ~A ill)I bull bull r

BOD Bodywork rapair aa per bull~tiaate Jgt6M bulla~nt materials BJIA Zo11lonmental Chargbull CJIR CAil CAllll 11Xl SUN ~ecb ampDd data methods Z801l140rroooo BEAK ra BUMPER R l00 1289 EACB 000

X ZR07119tr0901 99ACER l1R BIJIUgtER l 00 1421 EJU8 000 X Z801110ff0G21 GRILLE FR BOMPEa l 00 4721 JGCa ooo X ZB014100fP200 0 WIW R l00 49 78 ElltCS 0 00 X ZH016203T~OG11 laRROR ~LJSS 100 3980 ZACB 0 00 X zbull091BOsPA003 CLIP BVKiBR 7 00 2 17 ~B ooo

Z809180S7A003 CLI P GRILLE 400 218 ~ca 000 Y ZK091~06S9A003 CLXP B BtrldPER OO 2 17 JIJICS 000

ZH091301B0400 CLIP WI5Q 1000 1 55 JaeB 000 X ZB091S03S7AOOS CLI~ Ill GJIILLE 200 Z 18 lACB 000 1x zaOllOI~r0900ZA ra BllMPBSl I ~00 294 35 ~CB 765

1

VMS (FLEET middot N middot~MmiddotN LTD p

j A1PROVED

~ IEmiddot 1 I C 1 I 7 I

22 0 S

12 89 S l421

21 $ 0 78 I 91 80 81 15Us

872 S a se s

tsso ls 4 3~ S

2BG 70 SI 1S0$1 II

LSnl lfSE01 SITlPBS--- bull ~S09 DCB 000

~ bull c1- 1 I 6-511-I fY 1-1 0 ~ middot middot rbull _ middot ramiddot a-imiddot ~ middot middot~ ---- ----

PU1ta SlS13 middot middot middotmiddotmiddotbull frJ bull ~- r bull middot lfQt 1167 04 Sach~e Omiddotoo --middot middot~ ~Orl)d~~ middotF-1~1fCD~(AO 1 341 VAT 19341-

Lllboux 449 91 middotmiddot= I loial 1160 45_1 Slhlet () 00 middotmiddotI - -middotmiddot ---

_-deg~- J o~o L_ - L_ Paid Owing

000 ll60 45

CD V rrS l bS7C6 IZX P7 7- - 17

Appendix 2 Example Contract

9) In order co ensure satisfaction for Experts cust0mers and following a reqesr by Expert to proYide services which you have accepted if you are unable to pnlMde those services whemer by reason of illnessinjury of yourself or third parties or otilenorise you must give as much notice as possible Should Expert incur additional costs as a restit of your failure to A provide services that have been agreed we reserve the right to seek corpersation from ll you

I 0) It is agreed that you are not an employee of Expert and will be responsible for n-aking the appropriate PAYE deductions for tax and national insurance contributions from the money which you pay to other crew members together with your own income taX deductions and national insurance You agree to indemnify Expert in respect of any claims that may be made by HM Revenue and Cuscoms for any failure to do so

11) You will be provided with a fully fuelled Expert delivery vehicle to carry out your deliveries Expert agrees to pay you for each daily route which is calculated using the rate for each depot This amount will be agreed at the time of Expert requesting the provision of services but is subject to adjustment under clause 18 Expert operaces a self-billing procedure under which it will endeavour to make payment to you by the Monday of the week following the week in which the relevant delivery is completed You agree co enter a self-billing agreement in such form as Expert requires from time to time The current forms required are at Appendix I if VAT registered or Appendix 2 if not VAT registered lffurther expenses are incurred or additional services are carried otrt on behalf of Expert men a Additional Payment Claim Sheet (Appendix 3) will need to be completed and submitted before a payment is made and payment will only be made if the expenses or additional services have been authorised in advance by the transport or an outbase manager We will deduct a deposit of pound100 which will be taken from your first two weekly invoices for the Expert property you will be given Please sign Appendix 4 enclosed confirming your acceptance of these items On termination of this contract by either party this deposit will be refunded to you in full providing that both the phone and HHT device are in good condition when they are returned Without affecting any other rights we have we may deduct from that deposit any losses we suffer as a result of your breach of this agreement

12) Driver Bank details must be completed using Appendix 5 to enable payment of your fees However should any of your details or circumstances change thereafter then please inform the Company as soon as possible using Appendix 6

13) You will indemnify Expert for all costs incurred in connection with the provision of the services as a result of any deliberate or negligent act or omission of yours andor your crew member(s) This includes vehicle damage to Expert vehicles damaged lost or stolen products or property third party property damage including vehicle damage and all other damage to persons and property whatsoever Expert will issue a debit note for any costs mat you need to pay Expert and (without prejudice to any other remedies it has) may deduct these from any payment due to you

14) Expert carries out monitoring in order to protect the interests of the Company and other road users and its customers Such recording will take place by way of a video camera within the cab another within the box itself one outside the vehicle facing forward and one at tile rear of the vehicle These cameras are operational at all times whilst the vehicle is in your possession The purpose of the monitoring is to a Check the quantity and quality of services provided by you as one of its subshy

contractors b Safeguard you

c Check compliance with all applicable laws including laws relating to Health and Safety

d Assist in dealing with customer complaints

The information collected will be viewed routinely by the Company for these purposes

Expert has carried out an assessment to ensure that the way in which it records or processes this information is lawful and fair to you and other sub-contraCtOrs It is satisfied that the monitoring that will take place is fair and will not intrude into your and other subshycontractors private lives Any adverse impact on any sub-contractor is considered by the Company to be justified by the benefits to the Company customers and other subshycontractors The Company is satisfied that there is no other way in which the Company can reasonably achieve the purposes set out above Nevertheless if you have any concern about the monitoring you should report them in writing to the Expert Transport Department

By signing this letter you are confirming you understand and accept and agree that the Company may undertake this monitoring and that you will not tamper with or otherwise interiere with the proper operation of the monitoring equipment

15) Under no circumstances must Experts vehicles uniforms or telephones be used for any business other than that directly associated with the delivery of services for Expert

16) You must (and muse ensure that your crew member(s) and any ocher person(s) you use to provide the services under this agreement) comply with Experts customer services policies and procedures at all times

17) You agree to and understand the Substance Misuse Policy by signing Appendix 7 You must ensure that your crew members and any other persons you use to provide the services under this agreement comply with this policy at all times

18) Your fees will be subject to reduction as set out in Appendix 8 in the event that you fail to provide your services in accordance with our requirements From time to time we may amend Appendix 8 (both as to the requirements and the fee reductions) and the amendments will be effective in respect of all services provided by you after the amendments have been notified to you

19) Neither you nor any of the personnel you use to perform the services may enter into any binding contract or other commitment on behalf of Expert nor make any representations or give any warranties or guarantees in relation to the business of the Company or to goods or services supplied by it nor incur any liability whatsoever on behalf of Expert

20) This agreement may be terminated by either party by giving one weeks notice in writing to the other or by Expert with immediate effect if you (or any of your personnel) commit a material breach of any of its terms or of the terms of any of the policies andor procedures referred to in it

21) Following termination by either party your final payment (subject to deduction of any monies due to us) will be paid 28days after termination

22) All information provided to you by Expert relating to customers and the orders for goods placed by customers is strictly confidential You must only use (and you must

expert logistics

ensure that your mates employees and sub-contractors only use) that information for the purposes of this agreement You must not disclose (and you must ensure your mates employees and subcontractors do not disclose) that information to any third parcy unless you (or they) are required by law to do so You must comply (and you must ensure your mates employees and sub-contractors comply) with the provisions of the Data Protection Act 1998 and all other applicable legislation and codes of practice in relation to that information and its processing

23) You agree that neither you nor any of the personnel you use to carry out the services will provide any other services to any customer of Expert apart from those services

that you have agreed with Expert to provide to that customer In particular but without limitation neither you nor any of your personnel shall agree to provide any scrap removal or installation services for a customer unless these have been agreed beforehand by Expert If a customer requires the provision of services that are not in accordance with the details agreed by you with Expert you (or your personnel) must refer the matter to the Contact Centre for Expert to agree those services with and take payment from the customer before you (or your personnel) provide those services Neither you nor any of your personnel shall accept cash or any other payment from a customer for services provided All payments must be made directly to Expert by the customer

Yours sincerely for and on behalf of Expert Logistics Limited

Signed

Print name

Print position

Date

I have read and understood the attached letter and acknowledge and agree its terms

Crew name

SIGNED

DATE

Appendix 3 Fines Schedule

Appendix 4 Similarity with other tribunal cases

Aslam Farrar and Others v Uber httpwwwbbccouknewsbusiness-37802386 httpswwwjudiciarygovukwp-contentuploads201610aslam-and-farrar-v-uber-reasons-20161028pd bull October 2016 bull Ruled that drivers were entitled to holiday pay paid rest breaks and the national minimum

wage bull Reclassified as workers rather than ldquoself-employed contractorsrdquo as Uber argued

Reasons for the ruling bull ldquoIt is not real to regard Uber as working lsquoforrsquo drivers and that the only sensible interpretation

is that the relationship is the other way around Uber runs a transportation business The drivers provide the skilled labour through which the organisation delivers its services and earns its profitsrdquo This is based on the fact that

o Uber interviews and recruits drivers o Uber controls the key information and excludes the driver from it o Uber requires drivers to accept trips andor not to cancel trips and enforces the

requirement by logging off drivers who breach those requirements o Uber sets the (default) route o Uber imposes numerous conditions on drivers (such as the limited choice of

acceptable vehicles) instructs drivers as to how to do their work and in numerous ways controls them in the performance of their duties7

o Uber determines issues about rebates sometimes without even involving the driver whose remuneration is liable to be affected

o Uber accepts the risk of loss which if the drivers were genuinely in business on their own account would fall upon them

o Uber handles complaints by passengers including complaints about the driver o Uber reserves the power to amend the driversrsquo terms unilaterally

In all these respects Expert Logistic drivers are similar to Uber

Dewhurst v CitySprint UK httpwwwbbccouknewsbusiness-38534524 httpswwwwjmcouknewsjanuary--employment-law-bulletindewhurst-v-city-sprint-uk bull 6th January 2017 bull Tribunal found that Maggie Dewhurst a courier for CitySprint should be classed as a worker

rather than self-employed bull Dewhurst brought a claim before the London Employment tribunal in respect of 2 daysrsquo

unpaid holiday pay bull She would thus be entitled to basic rights including holiday and sick pay and minimum

wage bull Dewhurst said ldquoWe spend all day being told what to do when to do it and how to do it

Wersquore under their controlrdquo

7 Appendix 3 Fines Schedules

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 5: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

Spennymoor Delivery Driver Statement

Mr A was billed pound300000 for damage done to the truck he was driving when it was struck by a falling tree He has been paying off the damage for over a year now at 5 of his wages Again told that he either pays for the damage or loses his job even though it was not his fault He had already passed the tree when it fell over striking the box of the van but was billed for the damage to the truck even though he was delivering for Expert Logistics The farmer who owned the land refused to admit to any fault as well When he protested about the bill he was told by the manager that it was tax deductible

Former delivery driver and Training Officer

We were regularly sent to London to deliver training Travel expenses (time travelling and fuel) were not paid and although we were reimbursed for hotels there could be a delay of weeks ndash which is a long time to wait when paying for expensive hotels in London So we were just paid for the hours spent training but we could spend as much time again travelling Often because we werenrsquot paid for the full hours we were away from home we ended up driving to London sleeping in the truck for a couple of hours delivering 12 hours of training and driving back to the North East

Ex-driver

Damage was caused to my truck due to the floods ndash the manager told me ldquojust take the hitrdquo ndash The hit was pound1200 and it wasnrsquot even my fault There should be a built in company insurance ndash why are we taking the risk when we arenrsquot getting paid enough to begin with

Current driver

Irsquove worked there for 4 years and we had a slight pay rise since the Uber case ndash they are obviously trying to stop us wanting to take them to court too Itrsquos not fair as the office staff get holiday sick pay ndash its discrimination as its men who arenrsquot getting those benefits yet we are the ones most likely to be hurt There is a low volume of calls at the moment ndash I am only getting two days so itrsquos a struggle supporting a family and paying a mortgage I canrsquot get another job though as I have to be available or I will lose this one If you say you cannot work a particular day they wonrsquot offer you any work for at least a week afterwards

Another delivery driver

We work in two man teams One person is considered to be the crew leader and is paid by Expert logistics for work done The crew leader then pays his crew mate from this payment All damages fines etc are charged to crew leader It is Expert LogisticsAO way of distancing themselves from any damages

In this case the crew leader did not have a partner at the time to work with but was assigned another person to work with by Expert logistics This person was from a different crew number -His partner (crew leader) was off work after hurting his back No sick pay I must add Unfortunately this crew member had an accident whilst working on the Crew Leaderrsquos

number The Crew Leader was not even in the truck when the accident occurred but has been charged a bill of pound96704 This amount will be taken off of the Crew Leaderrsquos wages before it get to his bank account The Crew Leader has been told that he has to pursue the other driver for the amount owing Also as he is self-employed it is not Expert logistics problem The Crew Leader has also been told that if he refuses to pay he will lose his job

Unfortunately the Crew Leader cannot afford to lose 10 wages every week and is starting a new job next week He has effectively been constructively dismissed Believe or not the driver who had the accident has gotten away without paying the damages as the Crew Leader has left The damages stay with the Crew Leaderrsquos crew number which is his crew number Strangely Expert Logistics will not be pursuing the Crew Leader legally

This is something that happens all the time at Expert Logistics

Glassdoor Employee Review

Pros

Doesnt Recommend

Negative Outlook

Its a job thats about it

Cons Crap wage really really long hours Mlich you are not paid for if a route takes

14 hours to actually do and they say you can do it in 8hrs 40 min you get paid for 8hrs 40 min At Heyvood Depot you have to unload all old appliances at end of a morning run and afternoon run Mlich they say you are getting paid

for Strange how at crew you just leave the van full and they do it But you get the same rate You get told your working at 11 pm at night by text then they cancel it You are forced to 1MJrk 4 TRAINING days where nobody trains anyone the TRAINER just wants the work done as quickly as possible

sometimes you can 1MJrk 12+ hour days and during training you receive the princely sum of pound60 a day how anyone on here can call this company a good place to work is unbelievable it must be management leaving good reviews as it cant possibly be the drivers The throughput of drivers is unbelievable

too If you fail to appear for work they fine you pound50 and stand you down for four days the four days happen to always coincide with the training days so they have plenty of cheap labour to replace you you are forced to take on the responsibility of paying your co drivers wages all i Vas informed Vas that i was a lead driver and he was the co driver wasnt till we got paid that i understood

that he worked for me not them absolute joke Another way of getting yourself

into trouble with the tax man and laziness on Expert logistics part as they cant be bothered to do both the Nages If you NOrk for this company you will regret

it i know i did

Show Less

Advice to Management Stop lying to everyone

2132017 Epertlogislics Relieos I Glassdoorcouk

you to-ask ydu to nip Birmingham to just pick a few drops up as another crew Id behind but if you do it your only getting in around 9pm after starting around 430am but not getting paid the full hours your out but if you say no the office they are funny with you so you better say good bye to your next few days work The manger is a joke after emailing him asking why so many shifts are getting cancelled Ive got bills to pay I cant afford to keep having time off only work 2-3 days a week he replied with just Ill take it youve quit then No explanation so that sums up how professionally its run so after that I quit not being treated like a mug

So all that summed up Long days no respect and do anything to take money off you most truthful review about expert logistics on here

Show Less

Advice to Management At least show some respect to your drivers that are out for over 12 hours a day If you charge drivers for vehicle damaged let them know you did do for the 1st month I was there but after that I only found out in my pay slip that money was constantly coming out

Also when cancelling crews shifts Nhy do you not let the driver know instead of just not texting them a time to be in even though you said the morning before theyll be working Give them a reason why they iOnt be earning money that day

Show Less

Helpful (3)

2132017 8q)ert Logistics Re-iew I Glassdoorcouk

Pros There is no pros to this company they use you up and chuck you out Have no concern for your health of safety And talk and treat you like crap

Cons Over vvork you under pay you treat you like crap on a daily basis dont care for you safety or health if you dont dance too there tune out the door you go best thing Ive done in this company was to leave

Advice to Management Stay safe be cause the way you treat your staff Nill and is going to get you into a lot of trouble Best advice is get yourself some training in how to respect your staff

Helpful (1)

Ray Greatholder amp Sons case study (RGampS) AOCOM

RGampS provide two team drivers for Expert Logistics (EL) (sub-contractor)

Key issues

Pay

bull Lower pay rate than the contractor (EL)

RGampS - pound750ph Expert Logistic drivers pound897ph

bull Working for less than national living wage as drivers are not paid for hours they work over the set hours so if a delivery takes longer than RGampS estimate it is unpaid (eg frequently time taken to reach properties or to deliver goods is incorrect)

bull Unfair clause preventing drivers from approach EL direct RGampS have a lsquogentlemanrsquos agreementrsquo that drivers working for RGampS will not be employed directly by EL if they leave RGampS This means that they are stuck earning a lower wage for the same role

bull Drivers have to be available for shifts and therefore cannot take on work elsewhere ndash but are not guaranteed a set number of shifts ndash difficult to manage billsrent or apply for tax creditsuniversal credit

Deductions from pay

bull No proof of costs justifying the reduction is provided

bull Once one lsquofinersquo is paid another is added to keep people working for them in order to pay their lsquodebtsrsquo

bull Lack of information on the deductions from the pay (eg invoice just shows a code and the amount deducted)

bull Told that the deduction is 10 but it is frequently up to 20

Accidents

In his first week he hit a car and was charged bill of pound606 ndash this was repaid by deductions from his pay Then he was given a second pound913 bill for same incident ndash when he queried this he was then told that pound606 was the cost of the hire car and the pound913 bill for the repairs

Recently his van skidded on the ice into a ditch on a steep hill ndash he was injured and caused damage to the van He tried to claim lsquopay replacementrsquo through the insurance and was told that he had to be sick for two weeks before he could claim He has paid pound10pm for the insurance with no details of the policy He could not afford two weeks without pay and therefore had to return to work injured

Threatening text messages

When he requested information about the deductions and suggested that he would visit a solicitor her was sent the following text message

Attached Copy of lsquoinvoicesrsquo showing deductions and no information on why the deductions are made

RfClIVED 2 o FEB 2017 ~~~~~~~-

VMS(oS1~0

~ etGT-35-=t

StOiieacre Motor Group

SIDitGlti680CtJ0026S6 t23Z1202805 24022011 YY60tlJO t h middot~-11abull _orgt middotraquo-~bull~-_ ~ middotbull middotbullmiddot-i -~middot- middot t middot middot-middot bull-1 bull ~_a bull ~ -V bullbull bullmiddot ~r bulltI IKV~W~~bullwcT 1 middotmiddotbull 1 bulllt- bullbullmiddotbull ~middot bull tbull middot bull~ 19~middot11 ~ 1t -_ ~t-middot~ fbullCmiddottbull11t111acJbullbullbull

V0006~ VHS lJamp741fiampFID1K S POamp 24588

middot middot ~~ CltloU1Trr -~middot~ t4 ~middot J~~t~1~~middotrbull~degi~1middot~9att LaitYampampHmiddot middotmiddot~~- middotDate 11-tmiddot i~ fmiddot(0-litttUmiddoteutmiddot 1r Jdeg~iliniDui~ L__ 81110 I _ _ middot- --- l 7~0~~ _ 25012011 o oo

middot-middot middot middotiiiYImiddot bull ~bullmiddott)r11 iiiiamp~Sebull~middot_ middotmiddot~bullmiddot- bullmiddot middot middotmiddotmiddot middot1irtoimiddoti1rJ~11n1t~fiiilibullltnl(~-middot~lliiiimiddot middot middot~~1itllGlll V bull bullbull bull-bull middot bull ~middotmiddot c bullbull ~~- bullbull Pf~Y ~ ~ bullmiddot ~ 1 middot middot middotmiddotbulldeg 1 bullbull 1 bull7~ 1 ~ 1 ~A ill)I bull bull r

BOD Bodywork rapair aa per bull~tiaate Jgt6M bulla~nt materials BJIA Zo11lonmental Chargbull CJIR CAil CAllll 11Xl SUN ~ecb ampDd data methods Z801l140rroooo BEAK ra BUMPER R l00 1289 EACB 000

X ZR07119tr0901 99ACER l1R BIJIUgtER l 00 1421 EJU8 000 X Z801110ff0G21 GRILLE FR BOMPEa l 00 4721 JGCa ooo X ZB014100fP200 0 WIW R l00 49 78 ElltCS 0 00 X ZH016203T~OG11 laRROR ~LJSS 100 3980 ZACB 0 00 X zbull091BOsPA003 CLIP BVKiBR 7 00 2 17 ~B ooo

Z809180S7A003 CLI P GRILLE 400 218 ~ca 000 Y ZK091~06S9A003 CLXP B BtrldPER OO 2 17 JIJICS 000

ZH091301B0400 CLIP WI5Q 1000 1 55 JaeB 000 X ZB091S03S7AOOS CLI~ Ill GJIILLE 200 Z 18 lACB 000 1x zaOllOI~r0900ZA ra BllMPBSl I ~00 294 35 ~CB 765

1

VMS (FLEET middot N middot~MmiddotN LTD p

j A1PROVED

~ IEmiddot 1 I C 1 I 7 I

22 0 S

12 89 S l421

21 $ 0 78 I 91 80 81 15Us

872 S a se s

tsso ls 4 3~ S

2BG 70 SI 1S0$1 II

LSnl lfSE01 SITlPBS--- bull ~S09 DCB 000

~ bull c1- 1 I 6-511-I fY 1-1 0 ~ middot middot rbull _ middot ramiddot a-imiddot ~ middot middot~ ---- ----

PU1ta SlS13 middot middot middotmiddotmiddotbull frJ bull ~- r bull middot lfQt 1167 04 Sach~e Omiddotoo --middot middot~ ~Orl)d~~ middotF-1~1fCD~(AO 1 341 VAT 19341-

Lllboux 449 91 middotmiddot= I loial 1160 45_1 Slhlet () 00 middotmiddotI - -middotmiddot ---

_-deg~- J o~o L_ - L_ Paid Owing

000 ll60 45

CD V rrS l bS7C6 IZX P7 7- - 17

Appendix 2 Example Contract

9) In order co ensure satisfaction for Experts cust0mers and following a reqesr by Expert to proYide services which you have accepted if you are unable to pnlMde those services whemer by reason of illnessinjury of yourself or third parties or otilenorise you must give as much notice as possible Should Expert incur additional costs as a restit of your failure to A provide services that have been agreed we reserve the right to seek corpersation from ll you

I 0) It is agreed that you are not an employee of Expert and will be responsible for n-aking the appropriate PAYE deductions for tax and national insurance contributions from the money which you pay to other crew members together with your own income taX deductions and national insurance You agree to indemnify Expert in respect of any claims that may be made by HM Revenue and Cuscoms for any failure to do so

11) You will be provided with a fully fuelled Expert delivery vehicle to carry out your deliveries Expert agrees to pay you for each daily route which is calculated using the rate for each depot This amount will be agreed at the time of Expert requesting the provision of services but is subject to adjustment under clause 18 Expert operaces a self-billing procedure under which it will endeavour to make payment to you by the Monday of the week following the week in which the relevant delivery is completed You agree co enter a self-billing agreement in such form as Expert requires from time to time The current forms required are at Appendix I if VAT registered or Appendix 2 if not VAT registered lffurther expenses are incurred or additional services are carried otrt on behalf of Expert men a Additional Payment Claim Sheet (Appendix 3) will need to be completed and submitted before a payment is made and payment will only be made if the expenses or additional services have been authorised in advance by the transport or an outbase manager We will deduct a deposit of pound100 which will be taken from your first two weekly invoices for the Expert property you will be given Please sign Appendix 4 enclosed confirming your acceptance of these items On termination of this contract by either party this deposit will be refunded to you in full providing that both the phone and HHT device are in good condition when they are returned Without affecting any other rights we have we may deduct from that deposit any losses we suffer as a result of your breach of this agreement

12) Driver Bank details must be completed using Appendix 5 to enable payment of your fees However should any of your details or circumstances change thereafter then please inform the Company as soon as possible using Appendix 6

13) You will indemnify Expert for all costs incurred in connection with the provision of the services as a result of any deliberate or negligent act or omission of yours andor your crew member(s) This includes vehicle damage to Expert vehicles damaged lost or stolen products or property third party property damage including vehicle damage and all other damage to persons and property whatsoever Expert will issue a debit note for any costs mat you need to pay Expert and (without prejudice to any other remedies it has) may deduct these from any payment due to you

14) Expert carries out monitoring in order to protect the interests of the Company and other road users and its customers Such recording will take place by way of a video camera within the cab another within the box itself one outside the vehicle facing forward and one at tile rear of the vehicle These cameras are operational at all times whilst the vehicle is in your possession The purpose of the monitoring is to a Check the quantity and quality of services provided by you as one of its subshy

contractors b Safeguard you

c Check compliance with all applicable laws including laws relating to Health and Safety

d Assist in dealing with customer complaints

The information collected will be viewed routinely by the Company for these purposes

Expert has carried out an assessment to ensure that the way in which it records or processes this information is lawful and fair to you and other sub-contraCtOrs It is satisfied that the monitoring that will take place is fair and will not intrude into your and other subshycontractors private lives Any adverse impact on any sub-contractor is considered by the Company to be justified by the benefits to the Company customers and other subshycontractors The Company is satisfied that there is no other way in which the Company can reasonably achieve the purposes set out above Nevertheless if you have any concern about the monitoring you should report them in writing to the Expert Transport Department

By signing this letter you are confirming you understand and accept and agree that the Company may undertake this monitoring and that you will not tamper with or otherwise interiere with the proper operation of the monitoring equipment

15) Under no circumstances must Experts vehicles uniforms or telephones be used for any business other than that directly associated with the delivery of services for Expert

16) You must (and muse ensure that your crew member(s) and any ocher person(s) you use to provide the services under this agreement) comply with Experts customer services policies and procedures at all times

17) You agree to and understand the Substance Misuse Policy by signing Appendix 7 You must ensure that your crew members and any other persons you use to provide the services under this agreement comply with this policy at all times

18) Your fees will be subject to reduction as set out in Appendix 8 in the event that you fail to provide your services in accordance with our requirements From time to time we may amend Appendix 8 (both as to the requirements and the fee reductions) and the amendments will be effective in respect of all services provided by you after the amendments have been notified to you

19) Neither you nor any of the personnel you use to perform the services may enter into any binding contract or other commitment on behalf of Expert nor make any representations or give any warranties or guarantees in relation to the business of the Company or to goods or services supplied by it nor incur any liability whatsoever on behalf of Expert

20) This agreement may be terminated by either party by giving one weeks notice in writing to the other or by Expert with immediate effect if you (or any of your personnel) commit a material breach of any of its terms or of the terms of any of the policies andor procedures referred to in it

21) Following termination by either party your final payment (subject to deduction of any monies due to us) will be paid 28days after termination

22) All information provided to you by Expert relating to customers and the orders for goods placed by customers is strictly confidential You must only use (and you must

expert logistics

ensure that your mates employees and sub-contractors only use) that information for the purposes of this agreement You must not disclose (and you must ensure your mates employees and subcontractors do not disclose) that information to any third parcy unless you (or they) are required by law to do so You must comply (and you must ensure your mates employees and sub-contractors comply) with the provisions of the Data Protection Act 1998 and all other applicable legislation and codes of practice in relation to that information and its processing

23) You agree that neither you nor any of the personnel you use to carry out the services will provide any other services to any customer of Expert apart from those services

that you have agreed with Expert to provide to that customer In particular but without limitation neither you nor any of your personnel shall agree to provide any scrap removal or installation services for a customer unless these have been agreed beforehand by Expert If a customer requires the provision of services that are not in accordance with the details agreed by you with Expert you (or your personnel) must refer the matter to the Contact Centre for Expert to agree those services with and take payment from the customer before you (or your personnel) provide those services Neither you nor any of your personnel shall accept cash or any other payment from a customer for services provided All payments must be made directly to Expert by the customer

Yours sincerely for and on behalf of Expert Logistics Limited

Signed

Print name

Print position

Date

I have read and understood the attached letter and acknowledge and agree its terms

Crew name

SIGNED

DATE

Appendix 3 Fines Schedule

Appendix 4 Similarity with other tribunal cases

Aslam Farrar and Others v Uber httpwwwbbccouknewsbusiness-37802386 httpswwwjudiciarygovukwp-contentuploads201610aslam-and-farrar-v-uber-reasons-20161028pd bull October 2016 bull Ruled that drivers were entitled to holiday pay paid rest breaks and the national minimum

wage bull Reclassified as workers rather than ldquoself-employed contractorsrdquo as Uber argued

Reasons for the ruling bull ldquoIt is not real to regard Uber as working lsquoforrsquo drivers and that the only sensible interpretation

is that the relationship is the other way around Uber runs a transportation business The drivers provide the skilled labour through which the organisation delivers its services and earns its profitsrdquo This is based on the fact that

o Uber interviews and recruits drivers o Uber controls the key information and excludes the driver from it o Uber requires drivers to accept trips andor not to cancel trips and enforces the

requirement by logging off drivers who breach those requirements o Uber sets the (default) route o Uber imposes numerous conditions on drivers (such as the limited choice of

acceptable vehicles) instructs drivers as to how to do their work and in numerous ways controls them in the performance of their duties7

o Uber determines issues about rebates sometimes without even involving the driver whose remuneration is liable to be affected

o Uber accepts the risk of loss which if the drivers were genuinely in business on their own account would fall upon them

o Uber handles complaints by passengers including complaints about the driver o Uber reserves the power to amend the driversrsquo terms unilaterally

In all these respects Expert Logistic drivers are similar to Uber

Dewhurst v CitySprint UK httpwwwbbccouknewsbusiness-38534524 httpswwwwjmcouknewsjanuary--employment-law-bulletindewhurst-v-city-sprint-uk bull 6th January 2017 bull Tribunal found that Maggie Dewhurst a courier for CitySprint should be classed as a worker

rather than self-employed bull Dewhurst brought a claim before the London Employment tribunal in respect of 2 daysrsquo

unpaid holiday pay bull She would thus be entitled to basic rights including holiday and sick pay and minimum

wage bull Dewhurst said ldquoWe spend all day being told what to do when to do it and how to do it

Wersquore under their controlrdquo

7 Appendix 3 Fines Schedules

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 6: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

In this case the crew leader did not have a partner at the time to work with but was assigned another person to work with by Expert logistics This person was from a different crew number -His partner (crew leader) was off work after hurting his back No sick pay I must add Unfortunately this crew member had an accident whilst working on the Crew Leaderrsquos

number The Crew Leader was not even in the truck when the accident occurred but has been charged a bill of pound96704 This amount will be taken off of the Crew Leaderrsquos wages before it get to his bank account The Crew Leader has been told that he has to pursue the other driver for the amount owing Also as he is self-employed it is not Expert logistics problem The Crew Leader has also been told that if he refuses to pay he will lose his job

Unfortunately the Crew Leader cannot afford to lose 10 wages every week and is starting a new job next week He has effectively been constructively dismissed Believe or not the driver who had the accident has gotten away without paying the damages as the Crew Leader has left The damages stay with the Crew Leaderrsquos crew number which is his crew number Strangely Expert Logistics will not be pursuing the Crew Leader legally

This is something that happens all the time at Expert Logistics

Glassdoor Employee Review

Pros

Doesnt Recommend

Negative Outlook

Its a job thats about it

Cons Crap wage really really long hours Mlich you are not paid for if a route takes

14 hours to actually do and they say you can do it in 8hrs 40 min you get paid for 8hrs 40 min At Heyvood Depot you have to unload all old appliances at end of a morning run and afternoon run Mlich they say you are getting paid

for Strange how at crew you just leave the van full and they do it But you get the same rate You get told your working at 11 pm at night by text then they cancel it You are forced to 1MJrk 4 TRAINING days where nobody trains anyone the TRAINER just wants the work done as quickly as possible

sometimes you can 1MJrk 12+ hour days and during training you receive the princely sum of pound60 a day how anyone on here can call this company a good place to work is unbelievable it must be management leaving good reviews as it cant possibly be the drivers The throughput of drivers is unbelievable

too If you fail to appear for work they fine you pound50 and stand you down for four days the four days happen to always coincide with the training days so they have plenty of cheap labour to replace you you are forced to take on the responsibility of paying your co drivers wages all i Vas informed Vas that i was a lead driver and he was the co driver wasnt till we got paid that i understood

that he worked for me not them absolute joke Another way of getting yourself

into trouble with the tax man and laziness on Expert logistics part as they cant be bothered to do both the Nages If you NOrk for this company you will regret

it i know i did

Show Less

Advice to Management Stop lying to everyone

2132017 Epertlogislics Relieos I Glassdoorcouk

you to-ask ydu to nip Birmingham to just pick a few drops up as another crew Id behind but if you do it your only getting in around 9pm after starting around 430am but not getting paid the full hours your out but if you say no the office they are funny with you so you better say good bye to your next few days work The manger is a joke after emailing him asking why so many shifts are getting cancelled Ive got bills to pay I cant afford to keep having time off only work 2-3 days a week he replied with just Ill take it youve quit then No explanation so that sums up how professionally its run so after that I quit not being treated like a mug

So all that summed up Long days no respect and do anything to take money off you most truthful review about expert logistics on here

Show Less

Advice to Management At least show some respect to your drivers that are out for over 12 hours a day If you charge drivers for vehicle damaged let them know you did do for the 1st month I was there but after that I only found out in my pay slip that money was constantly coming out

Also when cancelling crews shifts Nhy do you not let the driver know instead of just not texting them a time to be in even though you said the morning before theyll be working Give them a reason why they iOnt be earning money that day

Show Less

Helpful (3)

2132017 8q)ert Logistics Re-iew I Glassdoorcouk

Pros There is no pros to this company they use you up and chuck you out Have no concern for your health of safety And talk and treat you like crap

Cons Over vvork you under pay you treat you like crap on a daily basis dont care for you safety or health if you dont dance too there tune out the door you go best thing Ive done in this company was to leave

Advice to Management Stay safe be cause the way you treat your staff Nill and is going to get you into a lot of trouble Best advice is get yourself some training in how to respect your staff

Helpful (1)

Ray Greatholder amp Sons case study (RGampS) AOCOM

RGampS provide two team drivers for Expert Logistics (EL) (sub-contractor)

Key issues

Pay

bull Lower pay rate than the contractor (EL)

RGampS - pound750ph Expert Logistic drivers pound897ph

bull Working for less than national living wage as drivers are not paid for hours they work over the set hours so if a delivery takes longer than RGampS estimate it is unpaid (eg frequently time taken to reach properties or to deliver goods is incorrect)

bull Unfair clause preventing drivers from approach EL direct RGampS have a lsquogentlemanrsquos agreementrsquo that drivers working for RGampS will not be employed directly by EL if they leave RGampS This means that they are stuck earning a lower wage for the same role

bull Drivers have to be available for shifts and therefore cannot take on work elsewhere ndash but are not guaranteed a set number of shifts ndash difficult to manage billsrent or apply for tax creditsuniversal credit

Deductions from pay

bull No proof of costs justifying the reduction is provided

bull Once one lsquofinersquo is paid another is added to keep people working for them in order to pay their lsquodebtsrsquo

bull Lack of information on the deductions from the pay (eg invoice just shows a code and the amount deducted)

bull Told that the deduction is 10 but it is frequently up to 20

Accidents

In his first week he hit a car and was charged bill of pound606 ndash this was repaid by deductions from his pay Then he was given a second pound913 bill for same incident ndash when he queried this he was then told that pound606 was the cost of the hire car and the pound913 bill for the repairs

Recently his van skidded on the ice into a ditch on a steep hill ndash he was injured and caused damage to the van He tried to claim lsquopay replacementrsquo through the insurance and was told that he had to be sick for two weeks before he could claim He has paid pound10pm for the insurance with no details of the policy He could not afford two weeks without pay and therefore had to return to work injured

Threatening text messages

When he requested information about the deductions and suggested that he would visit a solicitor her was sent the following text message

Attached Copy of lsquoinvoicesrsquo showing deductions and no information on why the deductions are made

RfClIVED 2 o FEB 2017 ~~~~~~~-

VMS(oS1~0

~ etGT-35-=t

StOiieacre Motor Group

SIDitGlti680CtJ0026S6 t23Z1202805 24022011 YY60tlJO t h middot~-11abull _orgt middotraquo-~bull~-_ ~ middotbull middotbullmiddot-i -~middot- middot t middot middot-middot bull-1 bull ~_a bull ~ -V bullbull bullmiddot ~r bulltI IKV~W~~bullwcT 1 middotmiddotbull 1 bulllt- bullbullmiddotbull ~middot bull tbull middot bull~ 19~middot11 ~ 1t -_ ~t-middot~ fbullCmiddottbull11t111acJbullbullbull

V0006~ VHS lJamp741fiampFID1K S POamp 24588

middot middot ~~ CltloU1Trr -~middot~ t4 ~middot J~~t~1~~middotrbull~degi~1middot~9att LaitYampampHmiddot middotmiddot~~- middotDate 11-tmiddot i~ fmiddot(0-litttUmiddoteutmiddot 1r Jdeg~iliniDui~ L__ 81110 I _ _ middot- --- l 7~0~~ _ 25012011 o oo

middot-middot middot middotiiiYImiddot bull ~bullmiddott)r11 iiiiamp~Sebull~middot_ middotmiddot~bullmiddot- bullmiddot middot middotmiddotmiddot middot1irtoimiddoti1rJ~11n1t~fiiilibullltnl(~-middot~lliiiimiddot middot middot~~1itllGlll V bull bullbull bull-bull middot bull ~middotmiddot c bullbull ~~- bullbull Pf~Y ~ ~ bullmiddot ~ 1 middot middot middotmiddotbulldeg 1 bullbull 1 bull7~ 1 ~ 1 ~A ill)I bull bull r

BOD Bodywork rapair aa per bull~tiaate Jgt6M bulla~nt materials BJIA Zo11lonmental Chargbull CJIR CAil CAllll 11Xl SUN ~ecb ampDd data methods Z801l140rroooo BEAK ra BUMPER R l00 1289 EACB 000

X ZR07119tr0901 99ACER l1R BIJIUgtER l 00 1421 EJU8 000 X Z801110ff0G21 GRILLE FR BOMPEa l 00 4721 JGCa ooo X ZB014100fP200 0 WIW R l00 49 78 ElltCS 0 00 X ZH016203T~OG11 laRROR ~LJSS 100 3980 ZACB 0 00 X zbull091BOsPA003 CLIP BVKiBR 7 00 2 17 ~B ooo

Z809180S7A003 CLI P GRILLE 400 218 ~ca 000 Y ZK091~06S9A003 CLXP B BtrldPER OO 2 17 JIJICS 000

ZH091301B0400 CLIP WI5Q 1000 1 55 JaeB 000 X ZB091S03S7AOOS CLI~ Ill GJIILLE 200 Z 18 lACB 000 1x zaOllOI~r0900ZA ra BllMPBSl I ~00 294 35 ~CB 765

1

VMS (FLEET middot N middot~MmiddotN LTD p

j A1PROVED

~ IEmiddot 1 I C 1 I 7 I

22 0 S

12 89 S l421

21 $ 0 78 I 91 80 81 15Us

872 S a se s

tsso ls 4 3~ S

2BG 70 SI 1S0$1 II

LSnl lfSE01 SITlPBS--- bull ~S09 DCB 000

~ bull c1- 1 I 6-511-I fY 1-1 0 ~ middot middot rbull _ middot ramiddot a-imiddot ~ middot middot~ ---- ----

PU1ta SlS13 middot middot middotmiddotmiddotbull frJ bull ~- r bull middot lfQt 1167 04 Sach~e Omiddotoo --middot middot~ ~Orl)d~~ middotF-1~1fCD~(AO 1 341 VAT 19341-

Lllboux 449 91 middotmiddot= I loial 1160 45_1 Slhlet () 00 middotmiddotI - -middotmiddot ---

_-deg~- J o~o L_ - L_ Paid Owing

000 ll60 45

CD V rrS l bS7C6 IZX P7 7- - 17

Appendix 2 Example Contract

9) In order co ensure satisfaction for Experts cust0mers and following a reqesr by Expert to proYide services which you have accepted if you are unable to pnlMde those services whemer by reason of illnessinjury of yourself or third parties or otilenorise you must give as much notice as possible Should Expert incur additional costs as a restit of your failure to A provide services that have been agreed we reserve the right to seek corpersation from ll you

I 0) It is agreed that you are not an employee of Expert and will be responsible for n-aking the appropriate PAYE deductions for tax and national insurance contributions from the money which you pay to other crew members together with your own income taX deductions and national insurance You agree to indemnify Expert in respect of any claims that may be made by HM Revenue and Cuscoms for any failure to do so

11) You will be provided with a fully fuelled Expert delivery vehicle to carry out your deliveries Expert agrees to pay you for each daily route which is calculated using the rate for each depot This amount will be agreed at the time of Expert requesting the provision of services but is subject to adjustment under clause 18 Expert operaces a self-billing procedure under which it will endeavour to make payment to you by the Monday of the week following the week in which the relevant delivery is completed You agree co enter a self-billing agreement in such form as Expert requires from time to time The current forms required are at Appendix I if VAT registered or Appendix 2 if not VAT registered lffurther expenses are incurred or additional services are carried otrt on behalf of Expert men a Additional Payment Claim Sheet (Appendix 3) will need to be completed and submitted before a payment is made and payment will only be made if the expenses or additional services have been authorised in advance by the transport or an outbase manager We will deduct a deposit of pound100 which will be taken from your first two weekly invoices for the Expert property you will be given Please sign Appendix 4 enclosed confirming your acceptance of these items On termination of this contract by either party this deposit will be refunded to you in full providing that both the phone and HHT device are in good condition when they are returned Without affecting any other rights we have we may deduct from that deposit any losses we suffer as a result of your breach of this agreement

12) Driver Bank details must be completed using Appendix 5 to enable payment of your fees However should any of your details or circumstances change thereafter then please inform the Company as soon as possible using Appendix 6

13) You will indemnify Expert for all costs incurred in connection with the provision of the services as a result of any deliberate or negligent act or omission of yours andor your crew member(s) This includes vehicle damage to Expert vehicles damaged lost or stolen products or property third party property damage including vehicle damage and all other damage to persons and property whatsoever Expert will issue a debit note for any costs mat you need to pay Expert and (without prejudice to any other remedies it has) may deduct these from any payment due to you

14) Expert carries out monitoring in order to protect the interests of the Company and other road users and its customers Such recording will take place by way of a video camera within the cab another within the box itself one outside the vehicle facing forward and one at tile rear of the vehicle These cameras are operational at all times whilst the vehicle is in your possession The purpose of the monitoring is to a Check the quantity and quality of services provided by you as one of its subshy

contractors b Safeguard you

c Check compliance with all applicable laws including laws relating to Health and Safety

d Assist in dealing with customer complaints

The information collected will be viewed routinely by the Company for these purposes

Expert has carried out an assessment to ensure that the way in which it records or processes this information is lawful and fair to you and other sub-contraCtOrs It is satisfied that the monitoring that will take place is fair and will not intrude into your and other subshycontractors private lives Any adverse impact on any sub-contractor is considered by the Company to be justified by the benefits to the Company customers and other subshycontractors The Company is satisfied that there is no other way in which the Company can reasonably achieve the purposes set out above Nevertheless if you have any concern about the monitoring you should report them in writing to the Expert Transport Department

By signing this letter you are confirming you understand and accept and agree that the Company may undertake this monitoring and that you will not tamper with or otherwise interiere with the proper operation of the monitoring equipment

15) Under no circumstances must Experts vehicles uniforms or telephones be used for any business other than that directly associated with the delivery of services for Expert

16) You must (and muse ensure that your crew member(s) and any ocher person(s) you use to provide the services under this agreement) comply with Experts customer services policies and procedures at all times

17) You agree to and understand the Substance Misuse Policy by signing Appendix 7 You must ensure that your crew members and any other persons you use to provide the services under this agreement comply with this policy at all times

18) Your fees will be subject to reduction as set out in Appendix 8 in the event that you fail to provide your services in accordance with our requirements From time to time we may amend Appendix 8 (both as to the requirements and the fee reductions) and the amendments will be effective in respect of all services provided by you after the amendments have been notified to you

19) Neither you nor any of the personnel you use to perform the services may enter into any binding contract or other commitment on behalf of Expert nor make any representations or give any warranties or guarantees in relation to the business of the Company or to goods or services supplied by it nor incur any liability whatsoever on behalf of Expert

20) This agreement may be terminated by either party by giving one weeks notice in writing to the other or by Expert with immediate effect if you (or any of your personnel) commit a material breach of any of its terms or of the terms of any of the policies andor procedures referred to in it

21) Following termination by either party your final payment (subject to deduction of any monies due to us) will be paid 28days after termination

22) All information provided to you by Expert relating to customers and the orders for goods placed by customers is strictly confidential You must only use (and you must

expert logistics

ensure that your mates employees and sub-contractors only use) that information for the purposes of this agreement You must not disclose (and you must ensure your mates employees and subcontractors do not disclose) that information to any third parcy unless you (or they) are required by law to do so You must comply (and you must ensure your mates employees and sub-contractors comply) with the provisions of the Data Protection Act 1998 and all other applicable legislation and codes of practice in relation to that information and its processing

23) You agree that neither you nor any of the personnel you use to carry out the services will provide any other services to any customer of Expert apart from those services

that you have agreed with Expert to provide to that customer In particular but without limitation neither you nor any of your personnel shall agree to provide any scrap removal or installation services for a customer unless these have been agreed beforehand by Expert If a customer requires the provision of services that are not in accordance with the details agreed by you with Expert you (or your personnel) must refer the matter to the Contact Centre for Expert to agree those services with and take payment from the customer before you (or your personnel) provide those services Neither you nor any of your personnel shall accept cash or any other payment from a customer for services provided All payments must be made directly to Expert by the customer

Yours sincerely for and on behalf of Expert Logistics Limited

Signed

Print name

Print position

Date

I have read and understood the attached letter and acknowledge and agree its terms

Crew name

SIGNED

DATE

Appendix 3 Fines Schedule

Appendix 4 Similarity with other tribunal cases

Aslam Farrar and Others v Uber httpwwwbbccouknewsbusiness-37802386 httpswwwjudiciarygovukwp-contentuploads201610aslam-and-farrar-v-uber-reasons-20161028pd bull October 2016 bull Ruled that drivers were entitled to holiday pay paid rest breaks and the national minimum

wage bull Reclassified as workers rather than ldquoself-employed contractorsrdquo as Uber argued

Reasons for the ruling bull ldquoIt is not real to regard Uber as working lsquoforrsquo drivers and that the only sensible interpretation

is that the relationship is the other way around Uber runs a transportation business The drivers provide the skilled labour through which the organisation delivers its services and earns its profitsrdquo This is based on the fact that

o Uber interviews and recruits drivers o Uber controls the key information and excludes the driver from it o Uber requires drivers to accept trips andor not to cancel trips and enforces the

requirement by logging off drivers who breach those requirements o Uber sets the (default) route o Uber imposes numerous conditions on drivers (such as the limited choice of

acceptable vehicles) instructs drivers as to how to do their work and in numerous ways controls them in the performance of their duties7

o Uber determines issues about rebates sometimes without even involving the driver whose remuneration is liable to be affected

o Uber accepts the risk of loss which if the drivers were genuinely in business on their own account would fall upon them

o Uber handles complaints by passengers including complaints about the driver o Uber reserves the power to amend the driversrsquo terms unilaterally

In all these respects Expert Logistic drivers are similar to Uber

Dewhurst v CitySprint UK httpwwwbbccouknewsbusiness-38534524 httpswwwwjmcouknewsjanuary--employment-law-bulletindewhurst-v-city-sprint-uk bull 6th January 2017 bull Tribunal found that Maggie Dewhurst a courier for CitySprint should be classed as a worker

rather than self-employed bull Dewhurst brought a claim before the London Employment tribunal in respect of 2 daysrsquo

unpaid holiday pay bull She would thus be entitled to basic rights including holiday and sick pay and minimum

wage bull Dewhurst said ldquoWe spend all day being told what to do when to do it and how to do it

Wersquore under their controlrdquo

7 Appendix 3 Fines Schedules

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 7: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

Glassdoor Employee Review

Pros

Doesnt Recommend

Negative Outlook

Its a job thats about it

Cons Crap wage really really long hours Mlich you are not paid for if a route takes

14 hours to actually do and they say you can do it in 8hrs 40 min you get paid for 8hrs 40 min At Heyvood Depot you have to unload all old appliances at end of a morning run and afternoon run Mlich they say you are getting paid

for Strange how at crew you just leave the van full and they do it But you get the same rate You get told your working at 11 pm at night by text then they cancel it You are forced to 1MJrk 4 TRAINING days where nobody trains anyone the TRAINER just wants the work done as quickly as possible

sometimes you can 1MJrk 12+ hour days and during training you receive the princely sum of pound60 a day how anyone on here can call this company a good place to work is unbelievable it must be management leaving good reviews as it cant possibly be the drivers The throughput of drivers is unbelievable

too If you fail to appear for work they fine you pound50 and stand you down for four days the four days happen to always coincide with the training days so they have plenty of cheap labour to replace you you are forced to take on the responsibility of paying your co drivers wages all i Vas informed Vas that i was a lead driver and he was the co driver wasnt till we got paid that i understood

that he worked for me not them absolute joke Another way of getting yourself

into trouble with the tax man and laziness on Expert logistics part as they cant be bothered to do both the Nages If you NOrk for this company you will regret

it i know i did

Show Less

Advice to Management Stop lying to everyone

2132017 Epertlogislics Relieos I Glassdoorcouk

you to-ask ydu to nip Birmingham to just pick a few drops up as another crew Id behind but if you do it your only getting in around 9pm after starting around 430am but not getting paid the full hours your out but if you say no the office they are funny with you so you better say good bye to your next few days work The manger is a joke after emailing him asking why so many shifts are getting cancelled Ive got bills to pay I cant afford to keep having time off only work 2-3 days a week he replied with just Ill take it youve quit then No explanation so that sums up how professionally its run so after that I quit not being treated like a mug

So all that summed up Long days no respect and do anything to take money off you most truthful review about expert logistics on here

Show Less

Advice to Management At least show some respect to your drivers that are out for over 12 hours a day If you charge drivers for vehicle damaged let them know you did do for the 1st month I was there but after that I only found out in my pay slip that money was constantly coming out

Also when cancelling crews shifts Nhy do you not let the driver know instead of just not texting them a time to be in even though you said the morning before theyll be working Give them a reason why they iOnt be earning money that day

Show Less

Helpful (3)

2132017 8q)ert Logistics Re-iew I Glassdoorcouk

Pros There is no pros to this company they use you up and chuck you out Have no concern for your health of safety And talk and treat you like crap

Cons Over vvork you under pay you treat you like crap on a daily basis dont care for you safety or health if you dont dance too there tune out the door you go best thing Ive done in this company was to leave

Advice to Management Stay safe be cause the way you treat your staff Nill and is going to get you into a lot of trouble Best advice is get yourself some training in how to respect your staff

Helpful (1)

Ray Greatholder amp Sons case study (RGampS) AOCOM

RGampS provide two team drivers for Expert Logistics (EL) (sub-contractor)

Key issues

Pay

bull Lower pay rate than the contractor (EL)

RGampS - pound750ph Expert Logistic drivers pound897ph

bull Working for less than national living wage as drivers are not paid for hours they work over the set hours so if a delivery takes longer than RGampS estimate it is unpaid (eg frequently time taken to reach properties or to deliver goods is incorrect)

bull Unfair clause preventing drivers from approach EL direct RGampS have a lsquogentlemanrsquos agreementrsquo that drivers working for RGampS will not be employed directly by EL if they leave RGampS This means that they are stuck earning a lower wage for the same role

bull Drivers have to be available for shifts and therefore cannot take on work elsewhere ndash but are not guaranteed a set number of shifts ndash difficult to manage billsrent or apply for tax creditsuniversal credit

Deductions from pay

bull No proof of costs justifying the reduction is provided

bull Once one lsquofinersquo is paid another is added to keep people working for them in order to pay their lsquodebtsrsquo

bull Lack of information on the deductions from the pay (eg invoice just shows a code and the amount deducted)

bull Told that the deduction is 10 but it is frequently up to 20

Accidents

In his first week he hit a car and was charged bill of pound606 ndash this was repaid by deductions from his pay Then he was given a second pound913 bill for same incident ndash when he queried this he was then told that pound606 was the cost of the hire car and the pound913 bill for the repairs

Recently his van skidded on the ice into a ditch on a steep hill ndash he was injured and caused damage to the van He tried to claim lsquopay replacementrsquo through the insurance and was told that he had to be sick for two weeks before he could claim He has paid pound10pm for the insurance with no details of the policy He could not afford two weeks without pay and therefore had to return to work injured

Threatening text messages

When he requested information about the deductions and suggested that he would visit a solicitor her was sent the following text message

Attached Copy of lsquoinvoicesrsquo showing deductions and no information on why the deductions are made

RfClIVED 2 o FEB 2017 ~~~~~~~-

VMS(oS1~0

~ etGT-35-=t

StOiieacre Motor Group

SIDitGlti680CtJ0026S6 t23Z1202805 24022011 YY60tlJO t h middot~-11abull _orgt middotraquo-~bull~-_ ~ middotbull middotbullmiddot-i -~middot- middot t middot middot-middot bull-1 bull ~_a bull ~ -V bullbull bullmiddot ~r bulltI IKV~W~~bullwcT 1 middotmiddotbull 1 bulllt- bullbullmiddotbull ~middot bull tbull middot bull~ 19~middot11 ~ 1t -_ ~t-middot~ fbullCmiddottbull11t111acJbullbullbull

V0006~ VHS lJamp741fiampFID1K S POamp 24588

middot middot ~~ CltloU1Trr -~middot~ t4 ~middot J~~t~1~~middotrbull~degi~1middot~9att LaitYampampHmiddot middotmiddot~~- middotDate 11-tmiddot i~ fmiddot(0-litttUmiddoteutmiddot 1r Jdeg~iliniDui~ L__ 81110 I _ _ middot- --- l 7~0~~ _ 25012011 o oo

middot-middot middot middotiiiYImiddot bull ~bullmiddott)r11 iiiiamp~Sebull~middot_ middotmiddot~bullmiddot- bullmiddot middot middotmiddotmiddot middot1irtoimiddoti1rJ~11n1t~fiiilibullltnl(~-middot~lliiiimiddot middot middot~~1itllGlll V bull bullbull bull-bull middot bull ~middotmiddot c bullbull ~~- bullbull Pf~Y ~ ~ bullmiddot ~ 1 middot middot middotmiddotbulldeg 1 bullbull 1 bull7~ 1 ~ 1 ~A ill)I bull bull r

BOD Bodywork rapair aa per bull~tiaate Jgt6M bulla~nt materials BJIA Zo11lonmental Chargbull CJIR CAil CAllll 11Xl SUN ~ecb ampDd data methods Z801l140rroooo BEAK ra BUMPER R l00 1289 EACB 000

X ZR07119tr0901 99ACER l1R BIJIUgtER l 00 1421 EJU8 000 X Z801110ff0G21 GRILLE FR BOMPEa l 00 4721 JGCa ooo X ZB014100fP200 0 WIW R l00 49 78 ElltCS 0 00 X ZH016203T~OG11 laRROR ~LJSS 100 3980 ZACB 0 00 X zbull091BOsPA003 CLIP BVKiBR 7 00 2 17 ~B ooo

Z809180S7A003 CLI P GRILLE 400 218 ~ca 000 Y ZK091~06S9A003 CLXP B BtrldPER OO 2 17 JIJICS 000

ZH091301B0400 CLIP WI5Q 1000 1 55 JaeB 000 X ZB091S03S7AOOS CLI~ Ill GJIILLE 200 Z 18 lACB 000 1x zaOllOI~r0900ZA ra BllMPBSl I ~00 294 35 ~CB 765

1

VMS (FLEET middot N middot~MmiddotN LTD p

j A1PROVED

~ IEmiddot 1 I C 1 I 7 I

22 0 S

12 89 S l421

21 $ 0 78 I 91 80 81 15Us

872 S a se s

tsso ls 4 3~ S

2BG 70 SI 1S0$1 II

LSnl lfSE01 SITlPBS--- bull ~S09 DCB 000

~ bull c1- 1 I 6-511-I fY 1-1 0 ~ middot middot rbull _ middot ramiddot a-imiddot ~ middot middot~ ---- ----

PU1ta SlS13 middot middot middotmiddotmiddotbull frJ bull ~- r bull middot lfQt 1167 04 Sach~e Omiddotoo --middot middot~ ~Orl)d~~ middotF-1~1fCD~(AO 1 341 VAT 19341-

Lllboux 449 91 middotmiddot= I loial 1160 45_1 Slhlet () 00 middotmiddotI - -middotmiddot ---

_-deg~- J o~o L_ - L_ Paid Owing

000 ll60 45

CD V rrS l bS7C6 IZX P7 7- - 17

Appendix 2 Example Contract

9) In order co ensure satisfaction for Experts cust0mers and following a reqesr by Expert to proYide services which you have accepted if you are unable to pnlMde those services whemer by reason of illnessinjury of yourself or third parties or otilenorise you must give as much notice as possible Should Expert incur additional costs as a restit of your failure to A provide services that have been agreed we reserve the right to seek corpersation from ll you

I 0) It is agreed that you are not an employee of Expert and will be responsible for n-aking the appropriate PAYE deductions for tax and national insurance contributions from the money which you pay to other crew members together with your own income taX deductions and national insurance You agree to indemnify Expert in respect of any claims that may be made by HM Revenue and Cuscoms for any failure to do so

11) You will be provided with a fully fuelled Expert delivery vehicle to carry out your deliveries Expert agrees to pay you for each daily route which is calculated using the rate for each depot This amount will be agreed at the time of Expert requesting the provision of services but is subject to adjustment under clause 18 Expert operaces a self-billing procedure under which it will endeavour to make payment to you by the Monday of the week following the week in which the relevant delivery is completed You agree co enter a self-billing agreement in such form as Expert requires from time to time The current forms required are at Appendix I if VAT registered or Appendix 2 if not VAT registered lffurther expenses are incurred or additional services are carried otrt on behalf of Expert men a Additional Payment Claim Sheet (Appendix 3) will need to be completed and submitted before a payment is made and payment will only be made if the expenses or additional services have been authorised in advance by the transport or an outbase manager We will deduct a deposit of pound100 which will be taken from your first two weekly invoices for the Expert property you will be given Please sign Appendix 4 enclosed confirming your acceptance of these items On termination of this contract by either party this deposit will be refunded to you in full providing that both the phone and HHT device are in good condition when they are returned Without affecting any other rights we have we may deduct from that deposit any losses we suffer as a result of your breach of this agreement

12) Driver Bank details must be completed using Appendix 5 to enable payment of your fees However should any of your details or circumstances change thereafter then please inform the Company as soon as possible using Appendix 6

13) You will indemnify Expert for all costs incurred in connection with the provision of the services as a result of any deliberate or negligent act or omission of yours andor your crew member(s) This includes vehicle damage to Expert vehicles damaged lost or stolen products or property third party property damage including vehicle damage and all other damage to persons and property whatsoever Expert will issue a debit note for any costs mat you need to pay Expert and (without prejudice to any other remedies it has) may deduct these from any payment due to you

14) Expert carries out monitoring in order to protect the interests of the Company and other road users and its customers Such recording will take place by way of a video camera within the cab another within the box itself one outside the vehicle facing forward and one at tile rear of the vehicle These cameras are operational at all times whilst the vehicle is in your possession The purpose of the monitoring is to a Check the quantity and quality of services provided by you as one of its subshy

contractors b Safeguard you

c Check compliance with all applicable laws including laws relating to Health and Safety

d Assist in dealing with customer complaints

The information collected will be viewed routinely by the Company for these purposes

Expert has carried out an assessment to ensure that the way in which it records or processes this information is lawful and fair to you and other sub-contraCtOrs It is satisfied that the monitoring that will take place is fair and will not intrude into your and other subshycontractors private lives Any adverse impact on any sub-contractor is considered by the Company to be justified by the benefits to the Company customers and other subshycontractors The Company is satisfied that there is no other way in which the Company can reasonably achieve the purposes set out above Nevertheless if you have any concern about the monitoring you should report them in writing to the Expert Transport Department

By signing this letter you are confirming you understand and accept and agree that the Company may undertake this monitoring and that you will not tamper with or otherwise interiere with the proper operation of the monitoring equipment

15) Under no circumstances must Experts vehicles uniforms or telephones be used for any business other than that directly associated with the delivery of services for Expert

16) You must (and muse ensure that your crew member(s) and any ocher person(s) you use to provide the services under this agreement) comply with Experts customer services policies and procedures at all times

17) You agree to and understand the Substance Misuse Policy by signing Appendix 7 You must ensure that your crew members and any other persons you use to provide the services under this agreement comply with this policy at all times

18) Your fees will be subject to reduction as set out in Appendix 8 in the event that you fail to provide your services in accordance with our requirements From time to time we may amend Appendix 8 (both as to the requirements and the fee reductions) and the amendments will be effective in respect of all services provided by you after the amendments have been notified to you

19) Neither you nor any of the personnel you use to perform the services may enter into any binding contract or other commitment on behalf of Expert nor make any representations or give any warranties or guarantees in relation to the business of the Company or to goods or services supplied by it nor incur any liability whatsoever on behalf of Expert

20) This agreement may be terminated by either party by giving one weeks notice in writing to the other or by Expert with immediate effect if you (or any of your personnel) commit a material breach of any of its terms or of the terms of any of the policies andor procedures referred to in it

21) Following termination by either party your final payment (subject to deduction of any monies due to us) will be paid 28days after termination

22) All information provided to you by Expert relating to customers and the orders for goods placed by customers is strictly confidential You must only use (and you must

expert logistics

ensure that your mates employees and sub-contractors only use) that information for the purposes of this agreement You must not disclose (and you must ensure your mates employees and subcontractors do not disclose) that information to any third parcy unless you (or they) are required by law to do so You must comply (and you must ensure your mates employees and sub-contractors comply) with the provisions of the Data Protection Act 1998 and all other applicable legislation and codes of practice in relation to that information and its processing

23) You agree that neither you nor any of the personnel you use to carry out the services will provide any other services to any customer of Expert apart from those services

that you have agreed with Expert to provide to that customer In particular but without limitation neither you nor any of your personnel shall agree to provide any scrap removal or installation services for a customer unless these have been agreed beforehand by Expert If a customer requires the provision of services that are not in accordance with the details agreed by you with Expert you (or your personnel) must refer the matter to the Contact Centre for Expert to agree those services with and take payment from the customer before you (or your personnel) provide those services Neither you nor any of your personnel shall accept cash or any other payment from a customer for services provided All payments must be made directly to Expert by the customer

Yours sincerely for and on behalf of Expert Logistics Limited

Signed

Print name

Print position

Date

I have read and understood the attached letter and acknowledge and agree its terms

Crew name

SIGNED

DATE

Appendix 3 Fines Schedule

Appendix 4 Similarity with other tribunal cases

Aslam Farrar and Others v Uber httpwwwbbccouknewsbusiness-37802386 httpswwwjudiciarygovukwp-contentuploads201610aslam-and-farrar-v-uber-reasons-20161028pd bull October 2016 bull Ruled that drivers were entitled to holiday pay paid rest breaks and the national minimum

wage bull Reclassified as workers rather than ldquoself-employed contractorsrdquo as Uber argued

Reasons for the ruling bull ldquoIt is not real to regard Uber as working lsquoforrsquo drivers and that the only sensible interpretation

is that the relationship is the other way around Uber runs a transportation business The drivers provide the skilled labour through which the organisation delivers its services and earns its profitsrdquo This is based on the fact that

o Uber interviews and recruits drivers o Uber controls the key information and excludes the driver from it o Uber requires drivers to accept trips andor not to cancel trips and enforces the

requirement by logging off drivers who breach those requirements o Uber sets the (default) route o Uber imposes numerous conditions on drivers (such as the limited choice of

acceptable vehicles) instructs drivers as to how to do their work and in numerous ways controls them in the performance of their duties7

o Uber determines issues about rebates sometimes without even involving the driver whose remuneration is liable to be affected

o Uber accepts the risk of loss which if the drivers were genuinely in business on their own account would fall upon them

o Uber handles complaints by passengers including complaints about the driver o Uber reserves the power to amend the driversrsquo terms unilaterally

In all these respects Expert Logistic drivers are similar to Uber

Dewhurst v CitySprint UK httpwwwbbccouknewsbusiness-38534524 httpswwwwjmcouknewsjanuary--employment-law-bulletindewhurst-v-city-sprint-uk bull 6th January 2017 bull Tribunal found that Maggie Dewhurst a courier for CitySprint should be classed as a worker

rather than self-employed bull Dewhurst brought a claim before the London Employment tribunal in respect of 2 daysrsquo

unpaid holiday pay bull She would thus be entitled to basic rights including holiday and sick pay and minimum

wage bull Dewhurst said ldquoWe spend all day being told what to do when to do it and how to do it

Wersquore under their controlrdquo

7 Appendix 3 Fines Schedules

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 8: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

Pros

Doesnt Recommend

Negative Outlook

Its a job thats about it

Cons Crap wage really really long hours Mlich you are not paid for if a route takes

14 hours to actually do and they say you can do it in 8hrs 40 min you get paid for 8hrs 40 min At Heyvood Depot you have to unload all old appliances at end of a morning run and afternoon run Mlich they say you are getting paid

for Strange how at crew you just leave the van full and they do it But you get the same rate You get told your working at 11 pm at night by text then they cancel it You are forced to 1MJrk 4 TRAINING days where nobody trains anyone the TRAINER just wants the work done as quickly as possible

sometimes you can 1MJrk 12+ hour days and during training you receive the princely sum of pound60 a day how anyone on here can call this company a good place to work is unbelievable it must be management leaving good reviews as it cant possibly be the drivers The throughput of drivers is unbelievable

too If you fail to appear for work they fine you pound50 and stand you down for four days the four days happen to always coincide with the training days so they have plenty of cheap labour to replace you you are forced to take on the responsibility of paying your co drivers wages all i Vas informed Vas that i was a lead driver and he was the co driver wasnt till we got paid that i understood

that he worked for me not them absolute joke Another way of getting yourself

into trouble with the tax man and laziness on Expert logistics part as they cant be bothered to do both the Nages If you NOrk for this company you will regret

it i know i did

Show Less

Advice to Management Stop lying to everyone

2132017 Epertlogislics Relieos I Glassdoorcouk

you to-ask ydu to nip Birmingham to just pick a few drops up as another crew Id behind but if you do it your only getting in around 9pm after starting around 430am but not getting paid the full hours your out but if you say no the office they are funny with you so you better say good bye to your next few days work The manger is a joke after emailing him asking why so many shifts are getting cancelled Ive got bills to pay I cant afford to keep having time off only work 2-3 days a week he replied with just Ill take it youve quit then No explanation so that sums up how professionally its run so after that I quit not being treated like a mug

So all that summed up Long days no respect and do anything to take money off you most truthful review about expert logistics on here

Show Less

Advice to Management At least show some respect to your drivers that are out for over 12 hours a day If you charge drivers for vehicle damaged let them know you did do for the 1st month I was there but after that I only found out in my pay slip that money was constantly coming out

Also when cancelling crews shifts Nhy do you not let the driver know instead of just not texting them a time to be in even though you said the morning before theyll be working Give them a reason why they iOnt be earning money that day

Show Less

Helpful (3)

2132017 8q)ert Logistics Re-iew I Glassdoorcouk

Pros There is no pros to this company they use you up and chuck you out Have no concern for your health of safety And talk and treat you like crap

Cons Over vvork you under pay you treat you like crap on a daily basis dont care for you safety or health if you dont dance too there tune out the door you go best thing Ive done in this company was to leave

Advice to Management Stay safe be cause the way you treat your staff Nill and is going to get you into a lot of trouble Best advice is get yourself some training in how to respect your staff

Helpful (1)

Ray Greatholder amp Sons case study (RGampS) AOCOM

RGampS provide two team drivers for Expert Logistics (EL) (sub-contractor)

Key issues

Pay

bull Lower pay rate than the contractor (EL)

RGampS - pound750ph Expert Logistic drivers pound897ph

bull Working for less than national living wage as drivers are not paid for hours they work over the set hours so if a delivery takes longer than RGampS estimate it is unpaid (eg frequently time taken to reach properties or to deliver goods is incorrect)

bull Unfair clause preventing drivers from approach EL direct RGampS have a lsquogentlemanrsquos agreementrsquo that drivers working for RGampS will not be employed directly by EL if they leave RGampS This means that they are stuck earning a lower wage for the same role

bull Drivers have to be available for shifts and therefore cannot take on work elsewhere ndash but are not guaranteed a set number of shifts ndash difficult to manage billsrent or apply for tax creditsuniversal credit

Deductions from pay

bull No proof of costs justifying the reduction is provided

bull Once one lsquofinersquo is paid another is added to keep people working for them in order to pay their lsquodebtsrsquo

bull Lack of information on the deductions from the pay (eg invoice just shows a code and the amount deducted)

bull Told that the deduction is 10 but it is frequently up to 20

Accidents

In his first week he hit a car and was charged bill of pound606 ndash this was repaid by deductions from his pay Then he was given a second pound913 bill for same incident ndash when he queried this he was then told that pound606 was the cost of the hire car and the pound913 bill for the repairs

Recently his van skidded on the ice into a ditch on a steep hill ndash he was injured and caused damage to the van He tried to claim lsquopay replacementrsquo through the insurance and was told that he had to be sick for two weeks before he could claim He has paid pound10pm for the insurance with no details of the policy He could not afford two weeks without pay and therefore had to return to work injured

Threatening text messages

When he requested information about the deductions and suggested that he would visit a solicitor her was sent the following text message

Attached Copy of lsquoinvoicesrsquo showing deductions and no information on why the deductions are made

RfClIVED 2 o FEB 2017 ~~~~~~~-

VMS(oS1~0

~ etGT-35-=t

StOiieacre Motor Group

SIDitGlti680CtJ0026S6 t23Z1202805 24022011 YY60tlJO t h middot~-11abull _orgt middotraquo-~bull~-_ ~ middotbull middotbullmiddot-i -~middot- middot t middot middot-middot bull-1 bull ~_a bull ~ -V bullbull bullmiddot ~r bulltI IKV~W~~bullwcT 1 middotmiddotbull 1 bulllt- bullbullmiddotbull ~middot bull tbull middot bull~ 19~middot11 ~ 1t -_ ~t-middot~ fbullCmiddottbull11t111acJbullbullbull

V0006~ VHS lJamp741fiampFID1K S POamp 24588

middot middot ~~ CltloU1Trr -~middot~ t4 ~middot J~~t~1~~middotrbull~degi~1middot~9att LaitYampampHmiddot middotmiddot~~- middotDate 11-tmiddot i~ fmiddot(0-litttUmiddoteutmiddot 1r Jdeg~iliniDui~ L__ 81110 I _ _ middot- --- l 7~0~~ _ 25012011 o oo

middot-middot middot middotiiiYImiddot bull ~bullmiddott)r11 iiiiamp~Sebull~middot_ middotmiddot~bullmiddot- bullmiddot middot middotmiddotmiddot middot1irtoimiddoti1rJ~11n1t~fiiilibullltnl(~-middot~lliiiimiddot middot middot~~1itllGlll V bull bullbull bull-bull middot bull ~middotmiddot c bullbull ~~- bullbull Pf~Y ~ ~ bullmiddot ~ 1 middot middot middotmiddotbulldeg 1 bullbull 1 bull7~ 1 ~ 1 ~A ill)I bull bull r

BOD Bodywork rapair aa per bull~tiaate Jgt6M bulla~nt materials BJIA Zo11lonmental Chargbull CJIR CAil CAllll 11Xl SUN ~ecb ampDd data methods Z801l140rroooo BEAK ra BUMPER R l00 1289 EACB 000

X ZR07119tr0901 99ACER l1R BIJIUgtER l 00 1421 EJU8 000 X Z801110ff0G21 GRILLE FR BOMPEa l 00 4721 JGCa ooo X ZB014100fP200 0 WIW R l00 49 78 ElltCS 0 00 X ZH016203T~OG11 laRROR ~LJSS 100 3980 ZACB 0 00 X zbull091BOsPA003 CLIP BVKiBR 7 00 2 17 ~B ooo

Z809180S7A003 CLI P GRILLE 400 218 ~ca 000 Y ZK091~06S9A003 CLXP B BtrldPER OO 2 17 JIJICS 000

ZH091301B0400 CLIP WI5Q 1000 1 55 JaeB 000 X ZB091S03S7AOOS CLI~ Ill GJIILLE 200 Z 18 lACB 000 1x zaOllOI~r0900ZA ra BllMPBSl I ~00 294 35 ~CB 765

1

VMS (FLEET middot N middot~MmiddotN LTD p

j A1PROVED

~ IEmiddot 1 I C 1 I 7 I

22 0 S

12 89 S l421

21 $ 0 78 I 91 80 81 15Us

872 S a se s

tsso ls 4 3~ S

2BG 70 SI 1S0$1 II

LSnl lfSE01 SITlPBS--- bull ~S09 DCB 000

~ bull c1- 1 I 6-511-I fY 1-1 0 ~ middot middot rbull _ middot ramiddot a-imiddot ~ middot middot~ ---- ----

PU1ta SlS13 middot middot middotmiddotmiddotbull frJ bull ~- r bull middot lfQt 1167 04 Sach~e Omiddotoo --middot middot~ ~Orl)d~~ middotF-1~1fCD~(AO 1 341 VAT 19341-

Lllboux 449 91 middotmiddot= I loial 1160 45_1 Slhlet () 00 middotmiddotI - -middotmiddot ---

_-deg~- J o~o L_ - L_ Paid Owing

000 ll60 45

CD V rrS l bS7C6 IZX P7 7- - 17

Appendix 2 Example Contract

9) In order co ensure satisfaction for Experts cust0mers and following a reqesr by Expert to proYide services which you have accepted if you are unable to pnlMde those services whemer by reason of illnessinjury of yourself or third parties or otilenorise you must give as much notice as possible Should Expert incur additional costs as a restit of your failure to A provide services that have been agreed we reserve the right to seek corpersation from ll you

I 0) It is agreed that you are not an employee of Expert and will be responsible for n-aking the appropriate PAYE deductions for tax and national insurance contributions from the money which you pay to other crew members together with your own income taX deductions and national insurance You agree to indemnify Expert in respect of any claims that may be made by HM Revenue and Cuscoms for any failure to do so

11) You will be provided with a fully fuelled Expert delivery vehicle to carry out your deliveries Expert agrees to pay you for each daily route which is calculated using the rate for each depot This amount will be agreed at the time of Expert requesting the provision of services but is subject to adjustment under clause 18 Expert operaces a self-billing procedure under which it will endeavour to make payment to you by the Monday of the week following the week in which the relevant delivery is completed You agree co enter a self-billing agreement in such form as Expert requires from time to time The current forms required are at Appendix I if VAT registered or Appendix 2 if not VAT registered lffurther expenses are incurred or additional services are carried otrt on behalf of Expert men a Additional Payment Claim Sheet (Appendix 3) will need to be completed and submitted before a payment is made and payment will only be made if the expenses or additional services have been authorised in advance by the transport or an outbase manager We will deduct a deposit of pound100 which will be taken from your first two weekly invoices for the Expert property you will be given Please sign Appendix 4 enclosed confirming your acceptance of these items On termination of this contract by either party this deposit will be refunded to you in full providing that both the phone and HHT device are in good condition when they are returned Without affecting any other rights we have we may deduct from that deposit any losses we suffer as a result of your breach of this agreement

12) Driver Bank details must be completed using Appendix 5 to enable payment of your fees However should any of your details or circumstances change thereafter then please inform the Company as soon as possible using Appendix 6

13) You will indemnify Expert for all costs incurred in connection with the provision of the services as a result of any deliberate or negligent act or omission of yours andor your crew member(s) This includes vehicle damage to Expert vehicles damaged lost or stolen products or property third party property damage including vehicle damage and all other damage to persons and property whatsoever Expert will issue a debit note for any costs mat you need to pay Expert and (without prejudice to any other remedies it has) may deduct these from any payment due to you

14) Expert carries out monitoring in order to protect the interests of the Company and other road users and its customers Such recording will take place by way of a video camera within the cab another within the box itself one outside the vehicle facing forward and one at tile rear of the vehicle These cameras are operational at all times whilst the vehicle is in your possession The purpose of the monitoring is to a Check the quantity and quality of services provided by you as one of its subshy

contractors b Safeguard you

c Check compliance with all applicable laws including laws relating to Health and Safety

d Assist in dealing with customer complaints

The information collected will be viewed routinely by the Company for these purposes

Expert has carried out an assessment to ensure that the way in which it records or processes this information is lawful and fair to you and other sub-contraCtOrs It is satisfied that the monitoring that will take place is fair and will not intrude into your and other subshycontractors private lives Any adverse impact on any sub-contractor is considered by the Company to be justified by the benefits to the Company customers and other subshycontractors The Company is satisfied that there is no other way in which the Company can reasonably achieve the purposes set out above Nevertheless if you have any concern about the monitoring you should report them in writing to the Expert Transport Department

By signing this letter you are confirming you understand and accept and agree that the Company may undertake this monitoring and that you will not tamper with or otherwise interiere with the proper operation of the monitoring equipment

15) Under no circumstances must Experts vehicles uniforms or telephones be used for any business other than that directly associated with the delivery of services for Expert

16) You must (and muse ensure that your crew member(s) and any ocher person(s) you use to provide the services under this agreement) comply with Experts customer services policies and procedures at all times

17) You agree to and understand the Substance Misuse Policy by signing Appendix 7 You must ensure that your crew members and any other persons you use to provide the services under this agreement comply with this policy at all times

18) Your fees will be subject to reduction as set out in Appendix 8 in the event that you fail to provide your services in accordance with our requirements From time to time we may amend Appendix 8 (both as to the requirements and the fee reductions) and the amendments will be effective in respect of all services provided by you after the amendments have been notified to you

19) Neither you nor any of the personnel you use to perform the services may enter into any binding contract or other commitment on behalf of Expert nor make any representations or give any warranties or guarantees in relation to the business of the Company or to goods or services supplied by it nor incur any liability whatsoever on behalf of Expert

20) This agreement may be terminated by either party by giving one weeks notice in writing to the other or by Expert with immediate effect if you (or any of your personnel) commit a material breach of any of its terms or of the terms of any of the policies andor procedures referred to in it

21) Following termination by either party your final payment (subject to deduction of any monies due to us) will be paid 28days after termination

22) All information provided to you by Expert relating to customers and the orders for goods placed by customers is strictly confidential You must only use (and you must

expert logistics

ensure that your mates employees and sub-contractors only use) that information for the purposes of this agreement You must not disclose (and you must ensure your mates employees and subcontractors do not disclose) that information to any third parcy unless you (or they) are required by law to do so You must comply (and you must ensure your mates employees and sub-contractors comply) with the provisions of the Data Protection Act 1998 and all other applicable legislation and codes of practice in relation to that information and its processing

23) You agree that neither you nor any of the personnel you use to carry out the services will provide any other services to any customer of Expert apart from those services

that you have agreed with Expert to provide to that customer In particular but without limitation neither you nor any of your personnel shall agree to provide any scrap removal or installation services for a customer unless these have been agreed beforehand by Expert If a customer requires the provision of services that are not in accordance with the details agreed by you with Expert you (or your personnel) must refer the matter to the Contact Centre for Expert to agree those services with and take payment from the customer before you (or your personnel) provide those services Neither you nor any of your personnel shall accept cash or any other payment from a customer for services provided All payments must be made directly to Expert by the customer

Yours sincerely for and on behalf of Expert Logistics Limited

Signed

Print name

Print position

Date

I have read and understood the attached letter and acknowledge and agree its terms

Crew name

SIGNED

DATE

Appendix 3 Fines Schedule

Appendix 4 Similarity with other tribunal cases

Aslam Farrar and Others v Uber httpwwwbbccouknewsbusiness-37802386 httpswwwjudiciarygovukwp-contentuploads201610aslam-and-farrar-v-uber-reasons-20161028pd bull October 2016 bull Ruled that drivers were entitled to holiday pay paid rest breaks and the national minimum

wage bull Reclassified as workers rather than ldquoself-employed contractorsrdquo as Uber argued

Reasons for the ruling bull ldquoIt is not real to regard Uber as working lsquoforrsquo drivers and that the only sensible interpretation

is that the relationship is the other way around Uber runs a transportation business The drivers provide the skilled labour through which the organisation delivers its services and earns its profitsrdquo This is based on the fact that

o Uber interviews and recruits drivers o Uber controls the key information and excludes the driver from it o Uber requires drivers to accept trips andor not to cancel trips and enforces the

requirement by logging off drivers who breach those requirements o Uber sets the (default) route o Uber imposes numerous conditions on drivers (such as the limited choice of

acceptable vehicles) instructs drivers as to how to do their work and in numerous ways controls them in the performance of their duties7

o Uber determines issues about rebates sometimes without even involving the driver whose remuneration is liable to be affected

o Uber accepts the risk of loss which if the drivers were genuinely in business on their own account would fall upon them

o Uber handles complaints by passengers including complaints about the driver o Uber reserves the power to amend the driversrsquo terms unilaterally

In all these respects Expert Logistic drivers are similar to Uber

Dewhurst v CitySprint UK httpwwwbbccouknewsbusiness-38534524 httpswwwwjmcouknewsjanuary--employment-law-bulletindewhurst-v-city-sprint-uk bull 6th January 2017 bull Tribunal found that Maggie Dewhurst a courier for CitySprint should be classed as a worker

rather than self-employed bull Dewhurst brought a claim before the London Employment tribunal in respect of 2 daysrsquo

unpaid holiday pay bull She would thus be entitled to basic rights including holiday and sick pay and minimum

wage bull Dewhurst said ldquoWe spend all day being told what to do when to do it and how to do it

Wersquore under their controlrdquo

7 Appendix 3 Fines Schedules

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 9: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

2132017 Epertlogislics Relieos I Glassdoorcouk

you to-ask ydu to nip Birmingham to just pick a few drops up as another crew Id behind but if you do it your only getting in around 9pm after starting around 430am but not getting paid the full hours your out but if you say no the office they are funny with you so you better say good bye to your next few days work The manger is a joke after emailing him asking why so many shifts are getting cancelled Ive got bills to pay I cant afford to keep having time off only work 2-3 days a week he replied with just Ill take it youve quit then No explanation so that sums up how professionally its run so after that I quit not being treated like a mug

So all that summed up Long days no respect and do anything to take money off you most truthful review about expert logistics on here

Show Less

Advice to Management At least show some respect to your drivers that are out for over 12 hours a day If you charge drivers for vehicle damaged let them know you did do for the 1st month I was there but after that I only found out in my pay slip that money was constantly coming out

Also when cancelling crews shifts Nhy do you not let the driver know instead of just not texting them a time to be in even though you said the morning before theyll be working Give them a reason why they iOnt be earning money that day

Show Less

Helpful (3)

2132017 8q)ert Logistics Re-iew I Glassdoorcouk

Pros There is no pros to this company they use you up and chuck you out Have no concern for your health of safety And talk and treat you like crap

Cons Over vvork you under pay you treat you like crap on a daily basis dont care for you safety or health if you dont dance too there tune out the door you go best thing Ive done in this company was to leave

Advice to Management Stay safe be cause the way you treat your staff Nill and is going to get you into a lot of trouble Best advice is get yourself some training in how to respect your staff

Helpful (1)

Ray Greatholder amp Sons case study (RGampS) AOCOM

RGampS provide two team drivers for Expert Logistics (EL) (sub-contractor)

Key issues

Pay

bull Lower pay rate than the contractor (EL)

RGampS - pound750ph Expert Logistic drivers pound897ph

bull Working for less than national living wage as drivers are not paid for hours they work over the set hours so if a delivery takes longer than RGampS estimate it is unpaid (eg frequently time taken to reach properties or to deliver goods is incorrect)

bull Unfair clause preventing drivers from approach EL direct RGampS have a lsquogentlemanrsquos agreementrsquo that drivers working for RGampS will not be employed directly by EL if they leave RGampS This means that they are stuck earning a lower wage for the same role

bull Drivers have to be available for shifts and therefore cannot take on work elsewhere ndash but are not guaranteed a set number of shifts ndash difficult to manage billsrent or apply for tax creditsuniversal credit

Deductions from pay

bull No proof of costs justifying the reduction is provided

bull Once one lsquofinersquo is paid another is added to keep people working for them in order to pay their lsquodebtsrsquo

bull Lack of information on the deductions from the pay (eg invoice just shows a code and the amount deducted)

bull Told that the deduction is 10 but it is frequently up to 20

Accidents

In his first week he hit a car and was charged bill of pound606 ndash this was repaid by deductions from his pay Then he was given a second pound913 bill for same incident ndash when he queried this he was then told that pound606 was the cost of the hire car and the pound913 bill for the repairs

Recently his van skidded on the ice into a ditch on a steep hill ndash he was injured and caused damage to the van He tried to claim lsquopay replacementrsquo through the insurance and was told that he had to be sick for two weeks before he could claim He has paid pound10pm for the insurance with no details of the policy He could not afford two weeks without pay and therefore had to return to work injured

Threatening text messages

When he requested information about the deductions and suggested that he would visit a solicitor her was sent the following text message

Attached Copy of lsquoinvoicesrsquo showing deductions and no information on why the deductions are made

RfClIVED 2 o FEB 2017 ~~~~~~~-

VMS(oS1~0

~ etGT-35-=t

StOiieacre Motor Group

SIDitGlti680CtJ0026S6 t23Z1202805 24022011 YY60tlJO t h middot~-11abull _orgt middotraquo-~bull~-_ ~ middotbull middotbullmiddot-i -~middot- middot t middot middot-middot bull-1 bull ~_a bull ~ -V bullbull bullmiddot ~r bulltI IKV~W~~bullwcT 1 middotmiddotbull 1 bulllt- bullbullmiddotbull ~middot bull tbull middot bull~ 19~middot11 ~ 1t -_ ~t-middot~ fbullCmiddottbull11t111acJbullbullbull

V0006~ VHS lJamp741fiampFID1K S POamp 24588

middot middot ~~ CltloU1Trr -~middot~ t4 ~middot J~~t~1~~middotrbull~degi~1middot~9att LaitYampampHmiddot middotmiddot~~- middotDate 11-tmiddot i~ fmiddot(0-litttUmiddoteutmiddot 1r Jdeg~iliniDui~ L__ 81110 I _ _ middot- --- l 7~0~~ _ 25012011 o oo

middot-middot middot middotiiiYImiddot bull ~bullmiddott)r11 iiiiamp~Sebull~middot_ middotmiddot~bullmiddot- bullmiddot middot middotmiddotmiddot middot1irtoimiddoti1rJ~11n1t~fiiilibullltnl(~-middot~lliiiimiddot middot middot~~1itllGlll V bull bullbull bull-bull middot bull ~middotmiddot c bullbull ~~- bullbull Pf~Y ~ ~ bullmiddot ~ 1 middot middot middotmiddotbulldeg 1 bullbull 1 bull7~ 1 ~ 1 ~A ill)I bull bull r

BOD Bodywork rapair aa per bull~tiaate Jgt6M bulla~nt materials BJIA Zo11lonmental Chargbull CJIR CAil CAllll 11Xl SUN ~ecb ampDd data methods Z801l140rroooo BEAK ra BUMPER R l00 1289 EACB 000

X ZR07119tr0901 99ACER l1R BIJIUgtER l 00 1421 EJU8 000 X Z801110ff0G21 GRILLE FR BOMPEa l 00 4721 JGCa ooo X ZB014100fP200 0 WIW R l00 49 78 ElltCS 0 00 X ZH016203T~OG11 laRROR ~LJSS 100 3980 ZACB 0 00 X zbull091BOsPA003 CLIP BVKiBR 7 00 2 17 ~B ooo

Z809180S7A003 CLI P GRILLE 400 218 ~ca 000 Y ZK091~06S9A003 CLXP B BtrldPER OO 2 17 JIJICS 000

ZH091301B0400 CLIP WI5Q 1000 1 55 JaeB 000 X ZB091S03S7AOOS CLI~ Ill GJIILLE 200 Z 18 lACB 000 1x zaOllOI~r0900ZA ra BllMPBSl I ~00 294 35 ~CB 765

1

VMS (FLEET middot N middot~MmiddotN LTD p

j A1PROVED

~ IEmiddot 1 I C 1 I 7 I

22 0 S

12 89 S l421

21 $ 0 78 I 91 80 81 15Us

872 S a se s

tsso ls 4 3~ S

2BG 70 SI 1S0$1 II

LSnl lfSE01 SITlPBS--- bull ~S09 DCB 000

~ bull c1- 1 I 6-511-I fY 1-1 0 ~ middot middot rbull _ middot ramiddot a-imiddot ~ middot middot~ ---- ----

PU1ta SlS13 middot middot middotmiddotmiddotbull frJ bull ~- r bull middot lfQt 1167 04 Sach~e Omiddotoo --middot middot~ ~Orl)d~~ middotF-1~1fCD~(AO 1 341 VAT 19341-

Lllboux 449 91 middotmiddot= I loial 1160 45_1 Slhlet () 00 middotmiddotI - -middotmiddot ---

_-deg~- J o~o L_ - L_ Paid Owing

000 ll60 45

CD V rrS l bS7C6 IZX P7 7- - 17

Appendix 2 Example Contract

9) In order co ensure satisfaction for Experts cust0mers and following a reqesr by Expert to proYide services which you have accepted if you are unable to pnlMde those services whemer by reason of illnessinjury of yourself or third parties or otilenorise you must give as much notice as possible Should Expert incur additional costs as a restit of your failure to A provide services that have been agreed we reserve the right to seek corpersation from ll you

I 0) It is agreed that you are not an employee of Expert and will be responsible for n-aking the appropriate PAYE deductions for tax and national insurance contributions from the money which you pay to other crew members together with your own income taX deductions and national insurance You agree to indemnify Expert in respect of any claims that may be made by HM Revenue and Cuscoms for any failure to do so

11) You will be provided with a fully fuelled Expert delivery vehicle to carry out your deliveries Expert agrees to pay you for each daily route which is calculated using the rate for each depot This amount will be agreed at the time of Expert requesting the provision of services but is subject to adjustment under clause 18 Expert operaces a self-billing procedure under which it will endeavour to make payment to you by the Monday of the week following the week in which the relevant delivery is completed You agree co enter a self-billing agreement in such form as Expert requires from time to time The current forms required are at Appendix I if VAT registered or Appendix 2 if not VAT registered lffurther expenses are incurred or additional services are carried otrt on behalf of Expert men a Additional Payment Claim Sheet (Appendix 3) will need to be completed and submitted before a payment is made and payment will only be made if the expenses or additional services have been authorised in advance by the transport or an outbase manager We will deduct a deposit of pound100 which will be taken from your first two weekly invoices for the Expert property you will be given Please sign Appendix 4 enclosed confirming your acceptance of these items On termination of this contract by either party this deposit will be refunded to you in full providing that both the phone and HHT device are in good condition when they are returned Without affecting any other rights we have we may deduct from that deposit any losses we suffer as a result of your breach of this agreement

12) Driver Bank details must be completed using Appendix 5 to enable payment of your fees However should any of your details or circumstances change thereafter then please inform the Company as soon as possible using Appendix 6

13) You will indemnify Expert for all costs incurred in connection with the provision of the services as a result of any deliberate or negligent act or omission of yours andor your crew member(s) This includes vehicle damage to Expert vehicles damaged lost or stolen products or property third party property damage including vehicle damage and all other damage to persons and property whatsoever Expert will issue a debit note for any costs mat you need to pay Expert and (without prejudice to any other remedies it has) may deduct these from any payment due to you

14) Expert carries out monitoring in order to protect the interests of the Company and other road users and its customers Such recording will take place by way of a video camera within the cab another within the box itself one outside the vehicle facing forward and one at tile rear of the vehicle These cameras are operational at all times whilst the vehicle is in your possession The purpose of the monitoring is to a Check the quantity and quality of services provided by you as one of its subshy

contractors b Safeguard you

c Check compliance with all applicable laws including laws relating to Health and Safety

d Assist in dealing with customer complaints

The information collected will be viewed routinely by the Company for these purposes

Expert has carried out an assessment to ensure that the way in which it records or processes this information is lawful and fair to you and other sub-contraCtOrs It is satisfied that the monitoring that will take place is fair and will not intrude into your and other subshycontractors private lives Any adverse impact on any sub-contractor is considered by the Company to be justified by the benefits to the Company customers and other subshycontractors The Company is satisfied that there is no other way in which the Company can reasonably achieve the purposes set out above Nevertheless if you have any concern about the monitoring you should report them in writing to the Expert Transport Department

By signing this letter you are confirming you understand and accept and agree that the Company may undertake this monitoring and that you will not tamper with or otherwise interiere with the proper operation of the monitoring equipment

15) Under no circumstances must Experts vehicles uniforms or telephones be used for any business other than that directly associated with the delivery of services for Expert

16) You must (and muse ensure that your crew member(s) and any ocher person(s) you use to provide the services under this agreement) comply with Experts customer services policies and procedures at all times

17) You agree to and understand the Substance Misuse Policy by signing Appendix 7 You must ensure that your crew members and any other persons you use to provide the services under this agreement comply with this policy at all times

18) Your fees will be subject to reduction as set out in Appendix 8 in the event that you fail to provide your services in accordance with our requirements From time to time we may amend Appendix 8 (both as to the requirements and the fee reductions) and the amendments will be effective in respect of all services provided by you after the amendments have been notified to you

19) Neither you nor any of the personnel you use to perform the services may enter into any binding contract or other commitment on behalf of Expert nor make any representations or give any warranties or guarantees in relation to the business of the Company or to goods or services supplied by it nor incur any liability whatsoever on behalf of Expert

20) This agreement may be terminated by either party by giving one weeks notice in writing to the other or by Expert with immediate effect if you (or any of your personnel) commit a material breach of any of its terms or of the terms of any of the policies andor procedures referred to in it

21) Following termination by either party your final payment (subject to deduction of any monies due to us) will be paid 28days after termination

22) All information provided to you by Expert relating to customers and the orders for goods placed by customers is strictly confidential You must only use (and you must

expert logistics

ensure that your mates employees and sub-contractors only use) that information for the purposes of this agreement You must not disclose (and you must ensure your mates employees and subcontractors do not disclose) that information to any third parcy unless you (or they) are required by law to do so You must comply (and you must ensure your mates employees and sub-contractors comply) with the provisions of the Data Protection Act 1998 and all other applicable legislation and codes of practice in relation to that information and its processing

23) You agree that neither you nor any of the personnel you use to carry out the services will provide any other services to any customer of Expert apart from those services

that you have agreed with Expert to provide to that customer In particular but without limitation neither you nor any of your personnel shall agree to provide any scrap removal or installation services for a customer unless these have been agreed beforehand by Expert If a customer requires the provision of services that are not in accordance with the details agreed by you with Expert you (or your personnel) must refer the matter to the Contact Centre for Expert to agree those services with and take payment from the customer before you (or your personnel) provide those services Neither you nor any of your personnel shall accept cash or any other payment from a customer for services provided All payments must be made directly to Expert by the customer

Yours sincerely for and on behalf of Expert Logistics Limited

Signed

Print name

Print position

Date

I have read and understood the attached letter and acknowledge and agree its terms

Crew name

SIGNED

DATE

Appendix 3 Fines Schedule

Appendix 4 Similarity with other tribunal cases

Aslam Farrar and Others v Uber httpwwwbbccouknewsbusiness-37802386 httpswwwjudiciarygovukwp-contentuploads201610aslam-and-farrar-v-uber-reasons-20161028pd bull October 2016 bull Ruled that drivers were entitled to holiday pay paid rest breaks and the national minimum

wage bull Reclassified as workers rather than ldquoself-employed contractorsrdquo as Uber argued

Reasons for the ruling bull ldquoIt is not real to regard Uber as working lsquoforrsquo drivers and that the only sensible interpretation

is that the relationship is the other way around Uber runs a transportation business The drivers provide the skilled labour through which the organisation delivers its services and earns its profitsrdquo This is based on the fact that

o Uber interviews and recruits drivers o Uber controls the key information and excludes the driver from it o Uber requires drivers to accept trips andor not to cancel trips and enforces the

requirement by logging off drivers who breach those requirements o Uber sets the (default) route o Uber imposes numerous conditions on drivers (such as the limited choice of

acceptable vehicles) instructs drivers as to how to do their work and in numerous ways controls them in the performance of their duties7

o Uber determines issues about rebates sometimes without even involving the driver whose remuneration is liable to be affected

o Uber accepts the risk of loss which if the drivers were genuinely in business on their own account would fall upon them

o Uber handles complaints by passengers including complaints about the driver o Uber reserves the power to amend the driversrsquo terms unilaterally

In all these respects Expert Logistic drivers are similar to Uber

Dewhurst v CitySprint UK httpwwwbbccouknewsbusiness-38534524 httpswwwwjmcouknewsjanuary--employment-law-bulletindewhurst-v-city-sprint-uk bull 6th January 2017 bull Tribunal found that Maggie Dewhurst a courier for CitySprint should be classed as a worker

rather than self-employed bull Dewhurst brought a claim before the London Employment tribunal in respect of 2 daysrsquo

unpaid holiday pay bull She would thus be entitled to basic rights including holiday and sick pay and minimum

wage bull Dewhurst said ldquoWe spend all day being told what to do when to do it and how to do it

Wersquore under their controlrdquo

7 Appendix 3 Fines Schedules

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 10: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

2132017 8q)ert Logistics Re-iew I Glassdoorcouk

Pros There is no pros to this company they use you up and chuck you out Have no concern for your health of safety And talk and treat you like crap

Cons Over vvork you under pay you treat you like crap on a daily basis dont care for you safety or health if you dont dance too there tune out the door you go best thing Ive done in this company was to leave

Advice to Management Stay safe be cause the way you treat your staff Nill and is going to get you into a lot of trouble Best advice is get yourself some training in how to respect your staff

Helpful (1)

Ray Greatholder amp Sons case study (RGampS) AOCOM

RGampS provide two team drivers for Expert Logistics (EL) (sub-contractor)

Key issues

Pay

bull Lower pay rate than the contractor (EL)

RGampS - pound750ph Expert Logistic drivers pound897ph

bull Working for less than national living wage as drivers are not paid for hours they work over the set hours so if a delivery takes longer than RGampS estimate it is unpaid (eg frequently time taken to reach properties or to deliver goods is incorrect)

bull Unfair clause preventing drivers from approach EL direct RGampS have a lsquogentlemanrsquos agreementrsquo that drivers working for RGampS will not be employed directly by EL if they leave RGampS This means that they are stuck earning a lower wage for the same role

bull Drivers have to be available for shifts and therefore cannot take on work elsewhere ndash but are not guaranteed a set number of shifts ndash difficult to manage billsrent or apply for tax creditsuniversal credit

Deductions from pay

bull No proof of costs justifying the reduction is provided

bull Once one lsquofinersquo is paid another is added to keep people working for them in order to pay their lsquodebtsrsquo

bull Lack of information on the deductions from the pay (eg invoice just shows a code and the amount deducted)

bull Told that the deduction is 10 but it is frequently up to 20

Accidents

In his first week he hit a car and was charged bill of pound606 ndash this was repaid by deductions from his pay Then he was given a second pound913 bill for same incident ndash when he queried this he was then told that pound606 was the cost of the hire car and the pound913 bill for the repairs

Recently his van skidded on the ice into a ditch on a steep hill ndash he was injured and caused damage to the van He tried to claim lsquopay replacementrsquo through the insurance and was told that he had to be sick for two weeks before he could claim He has paid pound10pm for the insurance with no details of the policy He could not afford two weeks without pay and therefore had to return to work injured

Threatening text messages

When he requested information about the deductions and suggested that he would visit a solicitor her was sent the following text message

Attached Copy of lsquoinvoicesrsquo showing deductions and no information on why the deductions are made

RfClIVED 2 o FEB 2017 ~~~~~~~-

VMS(oS1~0

~ etGT-35-=t

StOiieacre Motor Group

SIDitGlti680CtJ0026S6 t23Z1202805 24022011 YY60tlJO t h middot~-11abull _orgt middotraquo-~bull~-_ ~ middotbull middotbullmiddot-i -~middot- middot t middot middot-middot bull-1 bull ~_a bull ~ -V bullbull bullmiddot ~r bulltI IKV~W~~bullwcT 1 middotmiddotbull 1 bulllt- bullbullmiddotbull ~middot bull tbull middot bull~ 19~middot11 ~ 1t -_ ~t-middot~ fbullCmiddottbull11t111acJbullbullbull

V0006~ VHS lJamp741fiampFID1K S POamp 24588

middot middot ~~ CltloU1Trr -~middot~ t4 ~middot J~~t~1~~middotrbull~degi~1middot~9att LaitYampampHmiddot middotmiddot~~- middotDate 11-tmiddot i~ fmiddot(0-litttUmiddoteutmiddot 1r Jdeg~iliniDui~ L__ 81110 I _ _ middot- --- l 7~0~~ _ 25012011 o oo

middot-middot middot middotiiiYImiddot bull ~bullmiddott)r11 iiiiamp~Sebull~middot_ middotmiddot~bullmiddot- bullmiddot middot middotmiddotmiddot middot1irtoimiddoti1rJ~11n1t~fiiilibullltnl(~-middot~lliiiimiddot middot middot~~1itllGlll V bull bullbull bull-bull middot bull ~middotmiddot c bullbull ~~- bullbull Pf~Y ~ ~ bullmiddot ~ 1 middot middot middotmiddotbulldeg 1 bullbull 1 bull7~ 1 ~ 1 ~A ill)I bull bull r

BOD Bodywork rapair aa per bull~tiaate Jgt6M bulla~nt materials BJIA Zo11lonmental Chargbull CJIR CAil CAllll 11Xl SUN ~ecb ampDd data methods Z801l140rroooo BEAK ra BUMPER R l00 1289 EACB 000

X ZR07119tr0901 99ACER l1R BIJIUgtER l 00 1421 EJU8 000 X Z801110ff0G21 GRILLE FR BOMPEa l 00 4721 JGCa ooo X ZB014100fP200 0 WIW R l00 49 78 ElltCS 0 00 X ZH016203T~OG11 laRROR ~LJSS 100 3980 ZACB 0 00 X zbull091BOsPA003 CLIP BVKiBR 7 00 2 17 ~B ooo

Z809180S7A003 CLI P GRILLE 400 218 ~ca 000 Y ZK091~06S9A003 CLXP B BtrldPER OO 2 17 JIJICS 000

ZH091301B0400 CLIP WI5Q 1000 1 55 JaeB 000 X ZB091S03S7AOOS CLI~ Ill GJIILLE 200 Z 18 lACB 000 1x zaOllOI~r0900ZA ra BllMPBSl I ~00 294 35 ~CB 765

1

VMS (FLEET middot N middot~MmiddotN LTD p

j A1PROVED

~ IEmiddot 1 I C 1 I 7 I

22 0 S

12 89 S l421

21 $ 0 78 I 91 80 81 15Us

872 S a se s

tsso ls 4 3~ S

2BG 70 SI 1S0$1 II

LSnl lfSE01 SITlPBS--- bull ~S09 DCB 000

~ bull c1- 1 I 6-511-I fY 1-1 0 ~ middot middot rbull _ middot ramiddot a-imiddot ~ middot middot~ ---- ----

PU1ta SlS13 middot middot middotmiddotmiddotbull frJ bull ~- r bull middot lfQt 1167 04 Sach~e Omiddotoo --middot middot~ ~Orl)d~~ middotF-1~1fCD~(AO 1 341 VAT 19341-

Lllboux 449 91 middotmiddot= I loial 1160 45_1 Slhlet () 00 middotmiddotI - -middotmiddot ---

_-deg~- J o~o L_ - L_ Paid Owing

000 ll60 45

CD V rrS l bS7C6 IZX P7 7- - 17

Appendix 2 Example Contract

9) In order co ensure satisfaction for Experts cust0mers and following a reqesr by Expert to proYide services which you have accepted if you are unable to pnlMde those services whemer by reason of illnessinjury of yourself or third parties or otilenorise you must give as much notice as possible Should Expert incur additional costs as a restit of your failure to A provide services that have been agreed we reserve the right to seek corpersation from ll you

I 0) It is agreed that you are not an employee of Expert and will be responsible for n-aking the appropriate PAYE deductions for tax and national insurance contributions from the money which you pay to other crew members together with your own income taX deductions and national insurance You agree to indemnify Expert in respect of any claims that may be made by HM Revenue and Cuscoms for any failure to do so

11) You will be provided with a fully fuelled Expert delivery vehicle to carry out your deliveries Expert agrees to pay you for each daily route which is calculated using the rate for each depot This amount will be agreed at the time of Expert requesting the provision of services but is subject to adjustment under clause 18 Expert operaces a self-billing procedure under which it will endeavour to make payment to you by the Monday of the week following the week in which the relevant delivery is completed You agree co enter a self-billing agreement in such form as Expert requires from time to time The current forms required are at Appendix I if VAT registered or Appendix 2 if not VAT registered lffurther expenses are incurred or additional services are carried otrt on behalf of Expert men a Additional Payment Claim Sheet (Appendix 3) will need to be completed and submitted before a payment is made and payment will only be made if the expenses or additional services have been authorised in advance by the transport or an outbase manager We will deduct a deposit of pound100 which will be taken from your first two weekly invoices for the Expert property you will be given Please sign Appendix 4 enclosed confirming your acceptance of these items On termination of this contract by either party this deposit will be refunded to you in full providing that both the phone and HHT device are in good condition when they are returned Without affecting any other rights we have we may deduct from that deposit any losses we suffer as a result of your breach of this agreement

12) Driver Bank details must be completed using Appendix 5 to enable payment of your fees However should any of your details or circumstances change thereafter then please inform the Company as soon as possible using Appendix 6

13) You will indemnify Expert for all costs incurred in connection with the provision of the services as a result of any deliberate or negligent act or omission of yours andor your crew member(s) This includes vehicle damage to Expert vehicles damaged lost or stolen products or property third party property damage including vehicle damage and all other damage to persons and property whatsoever Expert will issue a debit note for any costs mat you need to pay Expert and (without prejudice to any other remedies it has) may deduct these from any payment due to you

14) Expert carries out monitoring in order to protect the interests of the Company and other road users and its customers Such recording will take place by way of a video camera within the cab another within the box itself one outside the vehicle facing forward and one at tile rear of the vehicle These cameras are operational at all times whilst the vehicle is in your possession The purpose of the monitoring is to a Check the quantity and quality of services provided by you as one of its subshy

contractors b Safeguard you

c Check compliance with all applicable laws including laws relating to Health and Safety

d Assist in dealing with customer complaints

The information collected will be viewed routinely by the Company for these purposes

Expert has carried out an assessment to ensure that the way in which it records or processes this information is lawful and fair to you and other sub-contraCtOrs It is satisfied that the monitoring that will take place is fair and will not intrude into your and other subshycontractors private lives Any adverse impact on any sub-contractor is considered by the Company to be justified by the benefits to the Company customers and other subshycontractors The Company is satisfied that there is no other way in which the Company can reasonably achieve the purposes set out above Nevertheless if you have any concern about the monitoring you should report them in writing to the Expert Transport Department

By signing this letter you are confirming you understand and accept and agree that the Company may undertake this monitoring and that you will not tamper with or otherwise interiere with the proper operation of the monitoring equipment

15) Under no circumstances must Experts vehicles uniforms or telephones be used for any business other than that directly associated with the delivery of services for Expert

16) You must (and muse ensure that your crew member(s) and any ocher person(s) you use to provide the services under this agreement) comply with Experts customer services policies and procedures at all times

17) You agree to and understand the Substance Misuse Policy by signing Appendix 7 You must ensure that your crew members and any other persons you use to provide the services under this agreement comply with this policy at all times

18) Your fees will be subject to reduction as set out in Appendix 8 in the event that you fail to provide your services in accordance with our requirements From time to time we may amend Appendix 8 (both as to the requirements and the fee reductions) and the amendments will be effective in respect of all services provided by you after the amendments have been notified to you

19) Neither you nor any of the personnel you use to perform the services may enter into any binding contract or other commitment on behalf of Expert nor make any representations or give any warranties or guarantees in relation to the business of the Company or to goods or services supplied by it nor incur any liability whatsoever on behalf of Expert

20) This agreement may be terminated by either party by giving one weeks notice in writing to the other or by Expert with immediate effect if you (or any of your personnel) commit a material breach of any of its terms or of the terms of any of the policies andor procedures referred to in it

21) Following termination by either party your final payment (subject to deduction of any monies due to us) will be paid 28days after termination

22) All information provided to you by Expert relating to customers and the orders for goods placed by customers is strictly confidential You must only use (and you must

expert logistics

ensure that your mates employees and sub-contractors only use) that information for the purposes of this agreement You must not disclose (and you must ensure your mates employees and subcontractors do not disclose) that information to any third parcy unless you (or they) are required by law to do so You must comply (and you must ensure your mates employees and sub-contractors comply) with the provisions of the Data Protection Act 1998 and all other applicable legislation and codes of practice in relation to that information and its processing

23) You agree that neither you nor any of the personnel you use to carry out the services will provide any other services to any customer of Expert apart from those services

that you have agreed with Expert to provide to that customer In particular but without limitation neither you nor any of your personnel shall agree to provide any scrap removal or installation services for a customer unless these have been agreed beforehand by Expert If a customer requires the provision of services that are not in accordance with the details agreed by you with Expert you (or your personnel) must refer the matter to the Contact Centre for Expert to agree those services with and take payment from the customer before you (or your personnel) provide those services Neither you nor any of your personnel shall accept cash or any other payment from a customer for services provided All payments must be made directly to Expert by the customer

Yours sincerely for and on behalf of Expert Logistics Limited

Signed

Print name

Print position

Date

I have read and understood the attached letter and acknowledge and agree its terms

Crew name

SIGNED

DATE

Appendix 3 Fines Schedule

Appendix 4 Similarity with other tribunal cases

Aslam Farrar and Others v Uber httpwwwbbccouknewsbusiness-37802386 httpswwwjudiciarygovukwp-contentuploads201610aslam-and-farrar-v-uber-reasons-20161028pd bull October 2016 bull Ruled that drivers were entitled to holiday pay paid rest breaks and the national minimum

wage bull Reclassified as workers rather than ldquoself-employed contractorsrdquo as Uber argued

Reasons for the ruling bull ldquoIt is not real to regard Uber as working lsquoforrsquo drivers and that the only sensible interpretation

is that the relationship is the other way around Uber runs a transportation business The drivers provide the skilled labour through which the organisation delivers its services and earns its profitsrdquo This is based on the fact that

o Uber interviews and recruits drivers o Uber controls the key information and excludes the driver from it o Uber requires drivers to accept trips andor not to cancel trips and enforces the

requirement by logging off drivers who breach those requirements o Uber sets the (default) route o Uber imposes numerous conditions on drivers (such as the limited choice of

acceptable vehicles) instructs drivers as to how to do their work and in numerous ways controls them in the performance of their duties7

o Uber determines issues about rebates sometimes without even involving the driver whose remuneration is liable to be affected

o Uber accepts the risk of loss which if the drivers were genuinely in business on their own account would fall upon them

o Uber handles complaints by passengers including complaints about the driver o Uber reserves the power to amend the driversrsquo terms unilaterally

In all these respects Expert Logistic drivers are similar to Uber

Dewhurst v CitySprint UK httpwwwbbccouknewsbusiness-38534524 httpswwwwjmcouknewsjanuary--employment-law-bulletindewhurst-v-city-sprint-uk bull 6th January 2017 bull Tribunal found that Maggie Dewhurst a courier for CitySprint should be classed as a worker

rather than self-employed bull Dewhurst brought a claim before the London Employment tribunal in respect of 2 daysrsquo

unpaid holiday pay bull She would thus be entitled to basic rights including holiday and sick pay and minimum

wage bull Dewhurst said ldquoWe spend all day being told what to do when to do it and how to do it

Wersquore under their controlrdquo

7 Appendix 3 Fines Schedules

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 11: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

Ray Greatholder amp Sons case study (RGampS) AOCOM

RGampS provide two team drivers for Expert Logistics (EL) (sub-contractor)

Key issues

Pay

bull Lower pay rate than the contractor (EL)

RGampS - pound750ph Expert Logistic drivers pound897ph

bull Working for less than national living wage as drivers are not paid for hours they work over the set hours so if a delivery takes longer than RGampS estimate it is unpaid (eg frequently time taken to reach properties or to deliver goods is incorrect)

bull Unfair clause preventing drivers from approach EL direct RGampS have a lsquogentlemanrsquos agreementrsquo that drivers working for RGampS will not be employed directly by EL if they leave RGampS This means that they are stuck earning a lower wage for the same role

bull Drivers have to be available for shifts and therefore cannot take on work elsewhere ndash but are not guaranteed a set number of shifts ndash difficult to manage billsrent or apply for tax creditsuniversal credit

Deductions from pay

bull No proof of costs justifying the reduction is provided

bull Once one lsquofinersquo is paid another is added to keep people working for them in order to pay their lsquodebtsrsquo

bull Lack of information on the deductions from the pay (eg invoice just shows a code and the amount deducted)

bull Told that the deduction is 10 but it is frequently up to 20

Accidents

In his first week he hit a car and was charged bill of pound606 ndash this was repaid by deductions from his pay Then he was given a second pound913 bill for same incident ndash when he queried this he was then told that pound606 was the cost of the hire car and the pound913 bill for the repairs

Recently his van skidded on the ice into a ditch on a steep hill ndash he was injured and caused damage to the van He tried to claim lsquopay replacementrsquo through the insurance and was told that he had to be sick for two weeks before he could claim He has paid pound10pm for the insurance with no details of the policy He could not afford two weeks without pay and therefore had to return to work injured

Threatening text messages

When he requested information about the deductions and suggested that he would visit a solicitor her was sent the following text message

Attached Copy of lsquoinvoicesrsquo showing deductions and no information on why the deductions are made

RfClIVED 2 o FEB 2017 ~~~~~~~-

VMS(oS1~0

~ etGT-35-=t

StOiieacre Motor Group

SIDitGlti680CtJ0026S6 t23Z1202805 24022011 YY60tlJO t h middot~-11abull _orgt middotraquo-~bull~-_ ~ middotbull middotbullmiddot-i -~middot- middot t middot middot-middot bull-1 bull ~_a bull ~ -V bullbull bullmiddot ~r bulltI IKV~W~~bullwcT 1 middotmiddotbull 1 bulllt- bullbullmiddotbull ~middot bull tbull middot bull~ 19~middot11 ~ 1t -_ ~t-middot~ fbullCmiddottbull11t111acJbullbullbull

V0006~ VHS lJamp741fiampFID1K S POamp 24588

middot middot ~~ CltloU1Trr -~middot~ t4 ~middot J~~t~1~~middotrbull~degi~1middot~9att LaitYampampHmiddot middotmiddot~~- middotDate 11-tmiddot i~ fmiddot(0-litttUmiddoteutmiddot 1r Jdeg~iliniDui~ L__ 81110 I _ _ middot- --- l 7~0~~ _ 25012011 o oo

middot-middot middot middotiiiYImiddot bull ~bullmiddott)r11 iiiiamp~Sebull~middot_ middotmiddot~bullmiddot- bullmiddot middot middotmiddotmiddot middot1irtoimiddoti1rJ~11n1t~fiiilibullltnl(~-middot~lliiiimiddot middot middot~~1itllGlll V bull bullbull bull-bull middot bull ~middotmiddot c bullbull ~~- bullbull Pf~Y ~ ~ bullmiddot ~ 1 middot middot middotmiddotbulldeg 1 bullbull 1 bull7~ 1 ~ 1 ~A ill)I bull bull r

BOD Bodywork rapair aa per bull~tiaate Jgt6M bulla~nt materials BJIA Zo11lonmental Chargbull CJIR CAil CAllll 11Xl SUN ~ecb ampDd data methods Z801l140rroooo BEAK ra BUMPER R l00 1289 EACB 000

X ZR07119tr0901 99ACER l1R BIJIUgtER l 00 1421 EJU8 000 X Z801110ff0G21 GRILLE FR BOMPEa l 00 4721 JGCa ooo X ZB014100fP200 0 WIW R l00 49 78 ElltCS 0 00 X ZH016203T~OG11 laRROR ~LJSS 100 3980 ZACB 0 00 X zbull091BOsPA003 CLIP BVKiBR 7 00 2 17 ~B ooo

Z809180S7A003 CLI P GRILLE 400 218 ~ca 000 Y ZK091~06S9A003 CLXP B BtrldPER OO 2 17 JIJICS 000

ZH091301B0400 CLIP WI5Q 1000 1 55 JaeB 000 X ZB091S03S7AOOS CLI~ Ill GJIILLE 200 Z 18 lACB 000 1x zaOllOI~r0900ZA ra BllMPBSl I ~00 294 35 ~CB 765

1

VMS (FLEET middot N middot~MmiddotN LTD p

j A1PROVED

~ IEmiddot 1 I C 1 I 7 I

22 0 S

12 89 S l421

21 $ 0 78 I 91 80 81 15Us

872 S a se s

tsso ls 4 3~ S

2BG 70 SI 1S0$1 II

LSnl lfSE01 SITlPBS--- bull ~S09 DCB 000

~ bull c1- 1 I 6-511-I fY 1-1 0 ~ middot middot rbull _ middot ramiddot a-imiddot ~ middot middot~ ---- ----

PU1ta SlS13 middot middot middotmiddotmiddotbull frJ bull ~- r bull middot lfQt 1167 04 Sach~e Omiddotoo --middot middot~ ~Orl)d~~ middotF-1~1fCD~(AO 1 341 VAT 19341-

Lllboux 449 91 middotmiddot= I loial 1160 45_1 Slhlet () 00 middotmiddotI - -middotmiddot ---

_-deg~- J o~o L_ - L_ Paid Owing

000 ll60 45

CD V rrS l bS7C6 IZX P7 7- - 17

Appendix 2 Example Contract

9) In order co ensure satisfaction for Experts cust0mers and following a reqesr by Expert to proYide services which you have accepted if you are unable to pnlMde those services whemer by reason of illnessinjury of yourself or third parties or otilenorise you must give as much notice as possible Should Expert incur additional costs as a restit of your failure to A provide services that have been agreed we reserve the right to seek corpersation from ll you

I 0) It is agreed that you are not an employee of Expert and will be responsible for n-aking the appropriate PAYE deductions for tax and national insurance contributions from the money which you pay to other crew members together with your own income taX deductions and national insurance You agree to indemnify Expert in respect of any claims that may be made by HM Revenue and Cuscoms for any failure to do so

11) You will be provided with a fully fuelled Expert delivery vehicle to carry out your deliveries Expert agrees to pay you for each daily route which is calculated using the rate for each depot This amount will be agreed at the time of Expert requesting the provision of services but is subject to adjustment under clause 18 Expert operaces a self-billing procedure under which it will endeavour to make payment to you by the Monday of the week following the week in which the relevant delivery is completed You agree co enter a self-billing agreement in such form as Expert requires from time to time The current forms required are at Appendix I if VAT registered or Appendix 2 if not VAT registered lffurther expenses are incurred or additional services are carried otrt on behalf of Expert men a Additional Payment Claim Sheet (Appendix 3) will need to be completed and submitted before a payment is made and payment will only be made if the expenses or additional services have been authorised in advance by the transport or an outbase manager We will deduct a deposit of pound100 which will be taken from your first two weekly invoices for the Expert property you will be given Please sign Appendix 4 enclosed confirming your acceptance of these items On termination of this contract by either party this deposit will be refunded to you in full providing that both the phone and HHT device are in good condition when they are returned Without affecting any other rights we have we may deduct from that deposit any losses we suffer as a result of your breach of this agreement

12) Driver Bank details must be completed using Appendix 5 to enable payment of your fees However should any of your details or circumstances change thereafter then please inform the Company as soon as possible using Appendix 6

13) You will indemnify Expert for all costs incurred in connection with the provision of the services as a result of any deliberate or negligent act or omission of yours andor your crew member(s) This includes vehicle damage to Expert vehicles damaged lost or stolen products or property third party property damage including vehicle damage and all other damage to persons and property whatsoever Expert will issue a debit note for any costs mat you need to pay Expert and (without prejudice to any other remedies it has) may deduct these from any payment due to you

14) Expert carries out monitoring in order to protect the interests of the Company and other road users and its customers Such recording will take place by way of a video camera within the cab another within the box itself one outside the vehicle facing forward and one at tile rear of the vehicle These cameras are operational at all times whilst the vehicle is in your possession The purpose of the monitoring is to a Check the quantity and quality of services provided by you as one of its subshy

contractors b Safeguard you

c Check compliance with all applicable laws including laws relating to Health and Safety

d Assist in dealing with customer complaints

The information collected will be viewed routinely by the Company for these purposes

Expert has carried out an assessment to ensure that the way in which it records or processes this information is lawful and fair to you and other sub-contraCtOrs It is satisfied that the monitoring that will take place is fair and will not intrude into your and other subshycontractors private lives Any adverse impact on any sub-contractor is considered by the Company to be justified by the benefits to the Company customers and other subshycontractors The Company is satisfied that there is no other way in which the Company can reasonably achieve the purposes set out above Nevertheless if you have any concern about the monitoring you should report them in writing to the Expert Transport Department

By signing this letter you are confirming you understand and accept and agree that the Company may undertake this monitoring and that you will not tamper with or otherwise interiere with the proper operation of the monitoring equipment

15) Under no circumstances must Experts vehicles uniforms or telephones be used for any business other than that directly associated with the delivery of services for Expert

16) You must (and muse ensure that your crew member(s) and any ocher person(s) you use to provide the services under this agreement) comply with Experts customer services policies and procedures at all times

17) You agree to and understand the Substance Misuse Policy by signing Appendix 7 You must ensure that your crew members and any other persons you use to provide the services under this agreement comply with this policy at all times

18) Your fees will be subject to reduction as set out in Appendix 8 in the event that you fail to provide your services in accordance with our requirements From time to time we may amend Appendix 8 (both as to the requirements and the fee reductions) and the amendments will be effective in respect of all services provided by you after the amendments have been notified to you

19) Neither you nor any of the personnel you use to perform the services may enter into any binding contract or other commitment on behalf of Expert nor make any representations or give any warranties or guarantees in relation to the business of the Company or to goods or services supplied by it nor incur any liability whatsoever on behalf of Expert

20) This agreement may be terminated by either party by giving one weeks notice in writing to the other or by Expert with immediate effect if you (or any of your personnel) commit a material breach of any of its terms or of the terms of any of the policies andor procedures referred to in it

21) Following termination by either party your final payment (subject to deduction of any monies due to us) will be paid 28days after termination

22) All information provided to you by Expert relating to customers and the orders for goods placed by customers is strictly confidential You must only use (and you must

expert logistics

ensure that your mates employees and sub-contractors only use) that information for the purposes of this agreement You must not disclose (and you must ensure your mates employees and subcontractors do not disclose) that information to any third parcy unless you (or they) are required by law to do so You must comply (and you must ensure your mates employees and sub-contractors comply) with the provisions of the Data Protection Act 1998 and all other applicable legislation and codes of practice in relation to that information and its processing

23) You agree that neither you nor any of the personnel you use to carry out the services will provide any other services to any customer of Expert apart from those services

that you have agreed with Expert to provide to that customer In particular but without limitation neither you nor any of your personnel shall agree to provide any scrap removal or installation services for a customer unless these have been agreed beforehand by Expert If a customer requires the provision of services that are not in accordance with the details agreed by you with Expert you (or your personnel) must refer the matter to the Contact Centre for Expert to agree those services with and take payment from the customer before you (or your personnel) provide those services Neither you nor any of your personnel shall accept cash or any other payment from a customer for services provided All payments must be made directly to Expert by the customer

Yours sincerely for and on behalf of Expert Logistics Limited

Signed

Print name

Print position

Date

I have read and understood the attached letter and acknowledge and agree its terms

Crew name

SIGNED

DATE

Appendix 3 Fines Schedule

Appendix 4 Similarity with other tribunal cases

Aslam Farrar and Others v Uber httpwwwbbccouknewsbusiness-37802386 httpswwwjudiciarygovukwp-contentuploads201610aslam-and-farrar-v-uber-reasons-20161028pd bull October 2016 bull Ruled that drivers were entitled to holiday pay paid rest breaks and the national minimum

wage bull Reclassified as workers rather than ldquoself-employed contractorsrdquo as Uber argued

Reasons for the ruling bull ldquoIt is not real to regard Uber as working lsquoforrsquo drivers and that the only sensible interpretation

is that the relationship is the other way around Uber runs a transportation business The drivers provide the skilled labour through which the organisation delivers its services and earns its profitsrdquo This is based on the fact that

o Uber interviews and recruits drivers o Uber controls the key information and excludes the driver from it o Uber requires drivers to accept trips andor not to cancel trips and enforces the

requirement by logging off drivers who breach those requirements o Uber sets the (default) route o Uber imposes numerous conditions on drivers (such as the limited choice of

acceptable vehicles) instructs drivers as to how to do their work and in numerous ways controls them in the performance of their duties7

o Uber determines issues about rebates sometimes without even involving the driver whose remuneration is liable to be affected

o Uber accepts the risk of loss which if the drivers were genuinely in business on their own account would fall upon them

o Uber handles complaints by passengers including complaints about the driver o Uber reserves the power to amend the driversrsquo terms unilaterally

In all these respects Expert Logistic drivers are similar to Uber

Dewhurst v CitySprint UK httpwwwbbccouknewsbusiness-38534524 httpswwwwjmcouknewsjanuary--employment-law-bulletindewhurst-v-city-sprint-uk bull 6th January 2017 bull Tribunal found that Maggie Dewhurst a courier for CitySprint should be classed as a worker

rather than self-employed bull Dewhurst brought a claim before the London Employment tribunal in respect of 2 daysrsquo

unpaid holiday pay bull She would thus be entitled to basic rights including holiday and sick pay and minimum

wage bull Dewhurst said ldquoWe spend all day being told what to do when to do it and how to do it

Wersquore under their controlrdquo

7 Appendix 3 Fines Schedules

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 12: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

Attached Copy of lsquoinvoicesrsquo showing deductions and no information on why the deductions are made

RfClIVED 2 o FEB 2017 ~~~~~~~-

VMS(oS1~0

~ etGT-35-=t

StOiieacre Motor Group

SIDitGlti680CtJ0026S6 t23Z1202805 24022011 YY60tlJO t h middot~-11abull _orgt middotraquo-~bull~-_ ~ middotbull middotbullmiddot-i -~middot- middot t middot middot-middot bull-1 bull ~_a bull ~ -V bullbull bullmiddot ~r bulltI IKV~W~~bullwcT 1 middotmiddotbull 1 bulllt- bullbullmiddotbull ~middot bull tbull middot bull~ 19~middot11 ~ 1t -_ ~t-middot~ fbullCmiddottbull11t111acJbullbullbull

V0006~ VHS lJamp741fiampFID1K S POamp 24588

middot middot ~~ CltloU1Trr -~middot~ t4 ~middot J~~t~1~~middotrbull~degi~1middot~9att LaitYampampHmiddot middotmiddot~~- middotDate 11-tmiddot i~ fmiddot(0-litttUmiddoteutmiddot 1r Jdeg~iliniDui~ L__ 81110 I _ _ middot- --- l 7~0~~ _ 25012011 o oo

middot-middot middot middotiiiYImiddot bull ~bullmiddott)r11 iiiiamp~Sebull~middot_ middotmiddot~bullmiddot- bullmiddot middot middotmiddotmiddot middot1irtoimiddoti1rJ~11n1t~fiiilibullltnl(~-middot~lliiiimiddot middot middot~~1itllGlll V bull bullbull bull-bull middot bull ~middotmiddot c bullbull ~~- bullbull Pf~Y ~ ~ bullmiddot ~ 1 middot middot middotmiddotbulldeg 1 bullbull 1 bull7~ 1 ~ 1 ~A ill)I bull bull r

BOD Bodywork rapair aa per bull~tiaate Jgt6M bulla~nt materials BJIA Zo11lonmental Chargbull CJIR CAil CAllll 11Xl SUN ~ecb ampDd data methods Z801l140rroooo BEAK ra BUMPER R l00 1289 EACB 000

X ZR07119tr0901 99ACER l1R BIJIUgtER l 00 1421 EJU8 000 X Z801110ff0G21 GRILLE FR BOMPEa l 00 4721 JGCa ooo X ZB014100fP200 0 WIW R l00 49 78 ElltCS 0 00 X ZH016203T~OG11 laRROR ~LJSS 100 3980 ZACB 0 00 X zbull091BOsPA003 CLIP BVKiBR 7 00 2 17 ~B ooo

Z809180S7A003 CLI P GRILLE 400 218 ~ca 000 Y ZK091~06S9A003 CLXP B BtrldPER OO 2 17 JIJICS 000

ZH091301B0400 CLIP WI5Q 1000 1 55 JaeB 000 X ZB091S03S7AOOS CLI~ Ill GJIILLE 200 Z 18 lACB 000 1x zaOllOI~r0900ZA ra BllMPBSl I ~00 294 35 ~CB 765

1

VMS (FLEET middot N middot~MmiddotN LTD p

j A1PROVED

~ IEmiddot 1 I C 1 I 7 I

22 0 S

12 89 S l421

21 $ 0 78 I 91 80 81 15Us

872 S a se s

tsso ls 4 3~ S

2BG 70 SI 1S0$1 II

LSnl lfSE01 SITlPBS--- bull ~S09 DCB 000

~ bull c1- 1 I 6-511-I fY 1-1 0 ~ middot middot rbull _ middot ramiddot a-imiddot ~ middot middot~ ---- ----

PU1ta SlS13 middot middot middotmiddotmiddotbull frJ bull ~- r bull middot lfQt 1167 04 Sach~e Omiddotoo --middot middot~ ~Orl)d~~ middotF-1~1fCD~(AO 1 341 VAT 19341-

Lllboux 449 91 middotmiddot= I loial 1160 45_1 Slhlet () 00 middotmiddotI - -middotmiddot ---

_-deg~- J o~o L_ - L_ Paid Owing

000 ll60 45

CD V rrS l bS7C6 IZX P7 7- - 17

Appendix 2 Example Contract

9) In order co ensure satisfaction for Experts cust0mers and following a reqesr by Expert to proYide services which you have accepted if you are unable to pnlMde those services whemer by reason of illnessinjury of yourself or third parties or otilenorise you must give as much notice as possible Should Expert incur additional costs as a restit of your failure to A provide services that have been agreed we reserve the right to seek corpersation from ll you

I 0) It is agreed that you are not an employee of Expert and will be responsible for n-aking the appropriate PAYE deductions for tax and national insurance contributions from the money which you pay to other crew members together with your own income taX deductions and national insurance You agree to indemnify Expert in respect of any claims that may be made by HM Revenue and Cuscoms for any failure to do so

11) You will be provided with a fully fuelled Expert delivery vehicle to carry out your deliveries Expert agrees to pay you for each daily route which is calculated using the rate for each depot This amount will be agreed at the time of Expert requesting the provision of services but is subject to adjustment under clause 18 Expert operaces a self-billing procedure under which it will endeavour to make payment to you by the Monday of the week following the week in which the relevant delivery is completed You agree co enter a self-billing agreement in such form as Expert requires from time to time The current forms required are at Appendix I if VAT registered or Appendix 2 if not VAT registered lffurther expenses are incurred or additional services are carried otrt on behalf of Expert men a Additional Payment Claim Sheet (Appendix 3) will need to be completed and submitted before a payment is made and payment will only be made if the expenses or additional services have been authorised in advance by the transport or an outbase manager We will deduct a deposit of pound100 which will be taken from your first two weekly invoices for the Expert property you will be given Please sign Appendix 4 enclosed confirming your acceptance of these items On termination of this contract by either party this deposit will be refunded to you in full providing that both the phone and HHT device are in good condition when they are returned Without affecting any other rights we have we may deduct from that deposit any losses we suffer as a result of your breach of this agreement

12) Driver Bank details must be completed using Appendix 5 to enable payment of your fees However should any of your details or circumstances change thereafter then please inform the Company as soon as possible using Appendix 6

13) You will indemnify Expert for all costs incurred in connection with the provision of the services as a result of any deliberate or negligent act or omission of yours andor your crew member(s) This includes vehicle damage to Expert vehicles damaged lost or stolen products or property third party property damage including vehicle damage and all other damage to persons and property whatsoever Expert will issue a debit note for any costs mat you need to pay Expert and (without prejudice to any other remedies it has) may deduct these from any payment due to you

14) Expert carries out monitoring in order to protect the interests of the Company and other road users and its customers Such recording will take place by way of a video camera within the cab another within the box itself one outside the vehicle facing forward and one at tile rear of the vehicle These cameras are operational at all times whilst the vehicle is in your possession The purpose of the monitoring is to a Check the quantity and quality of services provided by you as one of its subshy

contractors b Safeguard you

c Check compliance with all applicable laws including laws relating to Health and Safety

d Assist in dealing with customer complaints

The information collected will be viewed routinely by the Company for these purposes

Expert has carried out an assessment to ensure that the way in which it records or processes this information is lawful and fair to you and other sub-contraCtOrs It is satisfied that the monitoring that will take place is fair and will not intrude into your and other subshycontractors private lives Any adverse impact on any sub-contractor is considered by the Company to be justified by the benefits to the Company customers and other subshycontractors The Company is satisfied that there is no other way in which the Company can reasonably achieve the purposes set out above Nevertheless if you have any concern about the monitoring you should report them in writing to the Expert Transport Department

By signing this letter you are confirming you understand and accept and agree that the Company may undertake this monitoring and that you will not tamper with or otherwise interiere with the proper operation of the monitoring equipment

15) Under no circumstances must Experts vehicles uniforms or telephones be used for any business other than that directly associated with the delivery of services for Expert

16) You must (and muse ensure that your crew member(s) and any ocher person(s) you use to provide the services under this agreement) comply with Experts customer services policies and procedures at all times

17) You agree to and understand the Substance Misuse Policy by signing Appendix 7 You must ensure that your crew members and any other persons you use to provide the services under this agreement comply with this policy at all times

18) Your fees will be subject to reduction as set out in Appendix 8 in the event that you fail to provide your services in accordance with our requirements From time to time we may amend Appendix 8 (both as to the requirements and the fee reductions) and the amendments will be effective in respect of all services provided by you after the amendments have been notified to you

19) Neither you nor any of the personnel you use to perform the services may enter into any binding contract or other commitment on behalf of Expert nor make any representations or give any warranties or guarantees in relation to the business of the Company or to goods or services supplied by it nor incur any liability whatsoever on behalf of Expert

20) This agreement may be terminated by either party by giving one weeks notice in writing to the other or by Expert with immediate effect if you (or any of your personnel) commit a material breach of any of its terms or of the terms of any of the policies andor procedures referred to in it

21) Following termination by either party your final payment (subject to deduction of any monies due to us) will be paid 28days after termination

22) All information provided to you by Expert relating to customers and the orders for goods placed by customers is strictly confidential You must only use (and you must

expert logistics

ensure that your mates employees and sub-contractors only use) that information for the purposes of this agreement You must not disclose (and you must ensure your mates employees and subcontractors do not disclose) that information to any third parcy unless you (or they) are required by law to do so You must comply (and you must ensure your mates employees and sub-contractors comply) with the provisions of the Data Protection Act 1998 and all other applicable legislation and codes of practice in relation to that information and its processing

23) You agree that neither you nor any of the personnel you use to carry out the services will provide any other services to any customer of Expert apart from those services

that you have agreed with Expert to provide to that customer In particular but without limitation neither you nor any of your personnel shall agree to provide any scrap removal or installation services for a customer unless these have been agreed beforehand by Expert If a customer requires the provision of services that are not in accordance with the details agreed by you with Expert you (or your personnel) must refer the matter to the Contact Centre for Expert to agree those services with and take payment from the customer before you (or your personnel) provide those services Neither you nor any of your personnel shall accept cash or any other payment from a customer for services provided All payments must be made directly to Expert by the customer

Yours sincerely for and on behalf of Expert Logistics Limited

Signed

Print name

Print position

Date

I have read and understood the attached letter and acknowledge and agree its terms

Crew name

SIGNED

DATE

Appendix 3 Fines Schedule

Appendix 4 Similarity with other tribunal cases

Aslam Farrar and Others v Uber httpwwwbbccouknewsbusiness-37802386 httpswwwjudiciarygovukwp-contentuploads201610aslam-and-farrar-v-uber-reasons-20161028pd bull October 2016 bull Ruled that drivers were entitled to holiday pay paid rest breaks and the national minimum

wage bull Reclassified as workers rather than ldquoself-employed contractorsrdquo as Uber argued

Reasons for the ruling bull ldquoIt is not real to regard Uber as working lsquoforrsquo drivers and that the only sensible interpretation

is that the relationship is the other way around Uber runs a transportation business The drivers provide the skilled labour through which the organisation delivers its services and earns its profitsrdquo This is based on the fact that

o Uber interviews and recruits drivers o Uber controls the key information and excludes the driver from it o Uber requires drivers to accept trips andor not to cancel trips and enforces the

requirement by logging off drivers who breach those requirements o Uber sets the (default) route o Uber imposes numerous conditions on drivers (such as the limited choice of

acceptable vehicles) instructs drivers as to how to do their work and in numerous ways controls them in the performance of their duties7

o Uber determines issues about rebates sometimes without even involving the driver whose remuneration is liable to be affected

o Uber accepts the risk of loss which if the drivers were genuinely in business on their own account would fall upon them

o Uber handles complaints by passengers including complaints about the driver o Uber reserves the power to amend the driversrsquo terms unilaterally

In all these respects Expert Logistic drivers are similar to Uber

Dewhurst v CitySprint UK httpwwwbbccouknewsbusiness-38534524 httpswwwwjmcouknewsjanuary--employment-law-bulletindewhurst-v-city-sprint-uk bull 6th January 2017 bull Tribunal found that Maggie Dewhurst a courier for CitySprint should be classed as a worker

rather than self-employed bull Dewhurst brought a claim before the London Employment tribunal in respect of 2 daysrsquo

unpaid holiday pay bull She would thus be entitled to basic rights including holiday and sick pay and minimum

wage bull Dewhurst said ldquoWe spend all day being told what to do when to do it and how to do it

Wersquore under their controlrdquo

7 Appendix 3 Fines Schedules

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 13: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

RfClIVED 2 o FEB 2017 ~~~~~~~-

VMS(oS1~0

~ etGT-35-=t

StOiieacre Motor Group

SIDitGlti680CtJ0026S6 t23Z1202805 24022011 YY60tlJO t h middot~-11abull _orgt middotraquo-~bull~-_ ~ middotbull middotbullmiddot-i -~middot- middot t middot middot-middot bull-1 bull ~_a bull ~ -V bullbull bullmiddot ~r bulltI IKV~W~~bullwcT 1 middotmiddotbull 1 bulllt- bullbullmiddotbull ~middot bull tbull middot bull~ 19~middot11 ~ 1t -_ ~t-middot~ fbullCmiddottbull11t111acJbullbullbull

V0006~ VHS lJamp741fiampFID1K S POamp 24588

middot middot ~~ CltloU1Trr -~middot~ t4 ~middot J~~t~1~~middotrbull~degi~1middot~9att LaitYampampHmiddot middotmiddot~~- middotDate 11-tmiddot i~ fmiddot(0-litttUmiddoteutmiddot 1r Jdeg~iliniDui~ L__ 81110 I _ _ middot- --- l 7~0~~ _ 25012011 o oo

middot-middot middot middotiiiYImiddot bull ~bullmiddott)r11 iiiiamp~Sebull~middot_ middotmiddot~bullmiddot- bullmiddot middot middotmiddotmiddot middot1irtoimiddoti1rJ~11n1t~fiiilibullltnl(~-middot~lliiiimiddot middot middot~~1itllGlll V bull bullbull bull-bull middot bull ~middotmiddot c bullbull ~~- bullbull Pf~Y ~ ~ bullmiddot ~ 1 middot middot middotmiddotbulldeg 1 bullbull 1 bull7~ 1 ~ 1 ~A ill)I bull bull r

BOD Bodywork rapair aa per bull~tiaate Jgt6M bulla~nt materials BJIA Zo11lonmental Chargbull CJIR CAil CAllll 11Xl SUN ~ecb ampDd data methods Z801l140rroooo BEAK ra BUMPER R l00 1289 EACB 000

X ZR07119tr0901 99ACER l1R BIJIUgtER l 00 1421 EJU8 000 X Z801110ff0G21 GRILLE FR BOMPEa l 00 4721 JGCa ooo X ZB014100fP200 0 WIW R l00 49 78 ElltCS 0 00 X ZH016203T~OG11 laRROR ~LJSS 100 3980 ZACB 0 00 X zbull091BOsPA003 CLIP BVKiBR 7 00 2 17 ~B ooo

Z809180S7A003 CLI P GRILLE 400 218 ~ca 000 Y ZK091~06S9A003 CLXP B BtrldPER OO 2 17 JIJICS 000

ZH091301B0400 CLIP WI5Q 1000 1 55 JaeB 000 X ZB091S03S7AOOS CLI~ Ill GJIILLE 200 Z 18 lACB 000 1x zaOllOI~r0900ZA ra BllMPBSl I ~00 294 35 ~CB 765

1

VMS (FLEET middot N middot~MmiddotN LTD p

j A1PROVED

~ IEmiddot 1 I C 1 I 7 I

22 0 S

12 89 S l421

21 $ 0 78 I 91 80 81 15Us

872 S a se s

tsso ls 4 3~ S

2BG 70 SI 1S0$1 II

LSnl lfSE01 SITlPBS--- bull ~S09 DCB 000

~ bull c1- 1 I 6-511-I fY 1-1 0 ~ middot middot rbull _ middot ramiddot a-imiddot ~ middot middot~ ---- ----

PU1ta SlS13 middot middot middotmiddotmiddotbull frJ bull ~- r bull middot lfQt 1167 04 Sach~e Omiddotoo --middot middot~ ~Orl)d~~ middotF-1~1fCD~(AO 1 341 VAT 19341-

Lllboux 449 91 middotmiddot= I loial 1160 45_1 Slhlet () 00 middotmiddotI - -middotmiddot ---

_-deg~- J o~o L_ - L_ Paid Owing

000 ll60 45

CD V rrS l bS7C6 IZX P7 7- - 17

Appendix 2 Example Contract

9) In order co ensure satisfaction for Experts cust0mers and following a reqesr by Expert to proYide services which you have accepted if you are unable to pnlMde those services whemer by reason of illnessinjury of yourself or third parties or otilenorise you must give as much notice as possible Should Expert incur additional costs as a restit of your failure to A provide services that have been agreed we reserve the right to seek corpersation from ll you

I 0) It is agreed that you are not an employee of Expert and will be responsible for n-aking the appropriate PAYE deductions for tax and national insurance contributions from the money which you pay to other crew members together with your own income taX deductions and national insurance You agree to indemnify Expert in respect of any claims that may be made by HM Revenue and Cuscoms for any failure to do so

11) You will be provided with a fully fuelled Expert delivery vehicle to carry out your deliveries Expert agrees to pay you for each daily route which is calculated using the rate for each depot This amount will be agreed at the time of Expert requesting the provision of services but is subject to adjustment under clause 18 Expert operaces a self-billing procedure under which it will endeavour to make payment to you by the Monday of the week following the week in which the relevant delivery is completed You agree co enter a self-billing agreement in such form as Expert requires from time to time The current forms required are at Appendix I if VAT registered or Appendix 2 if not VAT registered lffurther expenses are incurred or additional services are carried otrt on behalf of Expert men a Additional Payment Claim Sheet (Appendix 3) will need to be completed and submitted before a payment is made and payment will only be made if the expenses or additional services have been authorised in advance by the transport or an outbase manager We will deduct a deposit of pound100 which will be taken from your first two weekly invoices for the Expert property you will be given Please sign Appendix 4 enclosed confirming your acceptance of these items On termination of this contract by either party this deposit will be refunded to you in full providing that both the phone and HHT device are in good condition when they are returned Without affecting any other rights we have we may deduct from that deposit any losses we suffer as a result of your breach of this agreement

12) Driver Bank details must be completed using Appendix 5 to enable payment of your fees However should any of your details or circumstances change thereafter then please inform the Company as soon as possible using Appendix 6

13) You will indemnify Expert for all costs incurred in connection with the provision of the services as a result of any deliberate or negligent act or omission of yours andor your crew member(s) This includes vehicle damage to Expert vehicles damaged lost or stolen products or property third party property damage including vehicle damage and all other damage to persons and property whatsoever Expert will issue a debit note for any costs mat you need to pay Expert and (without prejudice to any other remedies it has) may deduct these from any payment due to you

14) Expert carries out monitoring in order to protect the interests of the Company and other road users and its customers Such recording will take place by way of a video camera within the cab another within the box itself one outside the vehicle facing forward and one at tile rear of the vehicle These cameras are operational at all times whilst the vehicle is in your possession The purpose of the monitoring is to a Check the quantity and quality of services provided by you as one of its subshy

contractors b Safeguard you

c Check compliance with all applicable laws including laws relating to Health and Safety

d Assist in dealing with customer complaints

The information collected will be viewed routinely by the Company for these purposes

Expert has carried out an assessment to ensure that the way in which it records or processes this information is lawful and fair to you and other sub-contraCtOrs It is satisfied that the monitoring that will take place is fair and will not intrude into your and other subshycontractors private lives Any adverse impact on any sub-contractor is considered by the Company to be justified by the benefits to the Company customers and other subshycontractors The Company is satisfied that there is no other way in which the Company can reasonably achieve the purposes set out above Nevertheless if you have any concern about the monitoring you should report them in writing to the Expert Transport Department

By signing this letter you are confirming you understand and accept and agree that the Company may undertake this monitoring and that you will not tamper with or otherwise interiere with the proper operation of the monitoring equipment

15) Under no circumstances must Experts vehicles uniforms or telephones be used for any business other than that directly associated with the delivery of services for Expert

16) You must (and muse ensure that your crew member(s) and any ocher person(s) you use to provide the services under this agreement) comply with Experts customer services policies and procedures at all times

17) You agree to and understand the Substance Misuse Policy by signing Appendix 7 You must ensure that your crew members and any other persons you use to provide the services under this agreement comply with this policy at all times

18) Your fees will be subject to reduction as set out in Appendix 8 in the event that you fail to provide your services in accordance with our requirements From time to time we may amend Appendix 8 (both as to the requirements and the fee reductions) and the amendments will be effective in respect of all services provided by you after the amendments have been notified to you

19) Neither you nor any of the personnel you use to perform the services may enter into any binding contract or other commitment on behalf of Expert nor make any representations or give any warranties or guarantees in relation to the business of the Company or to goods or services supplied by it nor incur any liability whatsoever on behalf of Expert

20) This agreement may be terminated by either party by giving one weeks notice in writing to the other or by Expert with immediate effect if you (or any of your personnel) commit a material breach of any of its terms or of the terms of any of the policies andor procedures referred to in it

21) Following termination by either party your final payment (subject to deduction of any monies due to us) will be paid 28days after termination

22) All information provided to you by Expert relating to customers and the orders for goods placed by customers is strictly confidential You must only use (and you must

expert logistics

ensure that your mates employees and sub-contractors only use) that information for the purposes of this agreement You must not disclose (and you must ensure your mates employees and subcontractors do not disclose) that information to any third parcy unless you (or they) are required by law to do so You must comply (and you must ensure your mates employees and sub-contractors comply) with the provisions of the Data Protection Act 1998 and all other applicable legislation and codes of practice in relation to that information and its processing

23) You agree that neither you nor any of the personnel you use to carry out the services will provide any other services to any customer of Expert apart from those services

that you have agreed with Expert to provide to that customer In particular but without limitation neither you nor any of your personnel shall agree to provide any scrap removal or installation services for a customer unless these have been agreed beforehand by Expert If a customer requires the provision of services that are not in accordance with the details agreed by you with Expert you (or your personnel) must refer the matter to the Contact Centre for Expert to agree those services with and take payment from the customer before you (or your personnel) provide those services Neither you nor any of your personnel shall accept cash or any other payment from a customer for services provided All payments must be made directly to Expert by the customer

Yours sincerely for and on behalf of Expert Logistics Limited

Signed

Print name

Print position

Date

I have read and understood the attached letter and acknowledge and agree its terms

Crew name

SIGNED

DATE

Appendix 3 Fines Schedule

Appendix 4 Similarity with other tribunal cases

Aslam Farrar and Others v Uber httpwwwbbccouknewsbusiness-37802386 httpswwwjudiciarygovukwp-contentuploads201610aslam-and-farrar-v-uber-reasons-20161028pd bull October 2016 bull Ruled that drivers were entitled to holiday pay paid rest breaks and the national minimum

wage bull Reclassified as workers rather than ldquoself-employed contractorsrdquo as Uber argued

Reasons for the ruling bull ldquoIt is not real to regard Uber as working lsquoforrsquo drivers and that the only sensible interpretation

is that the relationship is the other way around Uber runs a transportation business The drivers provide the skilled labour through which the organisation delivers its services and earns its profitsrdquo This is based on the fact that

o Uber interviews and recruits drivers o Uber controls the key information and excludes the driver from it o Uber requires drivers to accept trips andor not to cancel trips and enforces the

requirement by logging off drivers who breach those requirements o Uber sets the (default) route o Uber imposes numerous conditions on drivers (such as the limited choice of

acceptable vehicles) instructs drivers as to how to do their work and in numerous ways controls them in the performance of their duties7

o Uber determines issues about rebates sometimes without even involving the driver whose remuneration is liable to be affected

o Uber accepts the risk of loss which if the drivers were genuinely in business on their own account would fall upon them

o Uber handles complaints by passengers including complaints about the driver o Uber reserves the power to amend the driversrsquo terms unilaterally

In all these respects Expert Logistic drivers are similar to Uber

Dewhurst v CitySprint UK httpwwwbbccouknewsbusiness-38534524 httpswwwwjmcouknewsjanuary--employment-law-bulletindewhurst-v-city-sprint-uk bull 6th January 2017 bull Tribunal found that Maggie Dewhurst a courier for CitySprint should be classed as a worker

rather than self-employed bull Dewhurst brought a claim before the London Employment tribunal in respect of 2 daysrsquo

unpaid holiday pay bull She would thus be entitled to basic rights including holiday and sick pay and minimum

wage bull Dewhurst said ldquoWe spend all day being told what to do when to do it and how to do it

Wersquore under their controlrdquo

7 Appendix 3 Fines Schedules

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 14: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

CD V rrS l bS7C6 IZX P7 7- - 17

Appendix 2 Example Contract

9) In order co ensure satisfaction for Experts cust0mers and following a reqesr by Expert to proYide services which you have accepted if you are unable to pnlMde those services whemer by reason of illnessinjury of yourself or third parties or otilenorise you must give as much notice as possible Should Expert incur additional costs as a restit of your failure to A provide services that have been agreed we reserve the right to seek corpersation from ll you

I 0) It is agreed that you are not an employee of Expert and will be responsible for n-aking the appropriate PAYE deductions for tax and national insurance contributions from the money which you pay to other crew members together with your own income taX deductions and national insurance You agree to indemnify Expert in respect of any claims that may be made by HM Revenue and Cuscoms for any failure to do so

11) You will be provided with a fully fuelled Expert delivery vehicle to carry out your deliveries Expert agrees to pay you for each daily route which is calculated using the rate for each depot This amount will be agreed at the time of Expert requesting the provision of services but is subject to adjustment under clause 18 Expert operaces a self-billing procedure under which it will endeavour to make payment to you by the Monday of the week following the week in which the relevant delivery is completed You agree co enter a self-billing agreement in such form as Expert requires from time to time The current forms required are at Appendix I if VAT registered or Appendix 2 if not VAT registered lffurther expenses are incurred or additional services are carried otrt on behalf of Expert men a Additional Payment Claim Sheet (Appendix 3) will need to be completed and submitted before a payment is made and payment will only be made if the expenses or additional services have been authorised in advance by the transport or an outbase manager We will deduct a deposit of pound100 which will be taken from your first two weekly invoices for the Expert property you will be given Please sign Appendix 4 enclosed confirming your acceptance of these items On termination of this contract by either party this deposit will be refunded to you in full providing that both the phone and HHT device are in good condition when they are returned Without affecting any other rights we have we may deduct from that deposit any losses we suffer as a result of your breach of this agreement

12) Driver Bank details must be completed using Appendix 5 to enable payment of your fees However should any of your details or circumstances change thereafter then please inform the Company as soon as possible using Appendix 6

13) You will indemnify Expert for all costs incurred in connection with the provision of the services as a result of any deliberate or negligent act or omission of yours andor your crew member(s) This includes vehicle damage to Expert vehicles damaged lost or stolen products or property third party property damage including vehicle damage and all other damage to persons and property whatsoever Expert will issue a debit note for any costs mat you need to pay Expert and (without prejudice to any other remedies it has) may deduct these from any payment due to you

14) Expert carries out monitoring in order to protect the interests of the Company and other road users and its customers Such recording will take place by way of a video camera within the cab another within the box itself one outside the vehicle facing forward and one at tile rear of the vehicle These cameras are operational at all times whilst the vehicle is in your possession The purpose of the monitoring is to a Check the quantity and quality of services provided by you as one of its subshy

contractors b Safeguard you

c Check compliance with all applicable laws including laws relating to Health and Safety

d Assist in dealing with customer complaints

The information collected will be viewed routinely by the Company for these purposes

Expert has carried out an assessment to ensure that the way in which it records or processes this information is lawful and fair to you and other sub-contraCtOrs It is satisfied that the monitoring that will take place is fair and will not intrude into your and other subshycontractors private lives Any adverse impact on any sub-contractor is considered by the Company to be justified by the benefits to the Company customers and other subshycontractors The Company is satisfied that there is no other way in which the Company can reasonably achieve the purposes set out above Nevertheless if you have any concern about the monitoring you should report them in writing to the Expert Transport Department

By signing this letter you are confirming you understand and accept and agree that the Company may undertake this monitoring and that you will not tamper with or otherwise interiere with the proper operation of the monitoring equipment

15) Under no circumstances must Experts vehicles uniforms or telephones be used for any business other than that directly associated with the delivery of services for Expert

16) You must (and muse ensure that your crew member(s) and any ocher person(s) you use to provide the services under this agreement) comply with Experts customer services policies and procedures at all times

17) You agree to and understand the Substance Misuse Policy by signing Appendix 7 You must ensure that your crew members and any other persons you use to provide the services under this agreement comply with this policy at all times

18) Your fees will be subject to reduction as set out in Appendix 8 in the event that you fail to provide your services in accordance with our requirements From time to time we may amend Appendix 8 (both as to the requirements and the fee reductions) and the amendments will be effective in respect of all services provided by you after the amendments have been notified to you

19) Neither you nor any of the personnel you use to perform the services may enter into any binding contract or other commitment on behalf of Expert nor make any representations or give any warranties or guarantees in relation to the business of the Company or to goods or services supplied by it nor incur any liability whatsoever on behalf of Expert

20) This agreement may be terminated by either party by giving one weeks notice in writing to the other or by Expert with immediate effect if you (or any of your personnel) commit a material breach of any of its terms or of the terms of any of the policies andor procedures referred to in it

21) Following termination by either party your final payment (subject to deduction of any monies due to us) will be paid 28days after termination

22) All information provided to you by Expert relating to customers and the orders for goods placed by customers is strictly confidential You must only use (and you must

expert logistics

ensure that your mates employees and sub-contractors only use) that information for the purposes of this agreement You must not disclose (and you must ensure your mates employees and subcontractors do not disclose) that information to any third parcy unless you (or they) are required by law to do so You must comply (and you must ensure your mates employees and sub-contractors comply) with the provisions of the Data Protection Act 1998 and all other applicable legislation and codes of practice in relation to that information and its processing

23) You agree that neither you nor any of the personnel you use to carry out the services will provide any other services to any customer of Expert apart from those services

that you have agreed with Expert to provide to that customer In particular but without limitation neither you nor any of your personnel shall agree to provide any scrap removal or installation services for a customer unless these have been agreed beforehand by Expert If a customer requires the provision of services that are not in accordance with the details agreed by you with Expert you (or your personnel) must refer the matter to the Contact Centre for Expert to agree those services with and take payment from the customer before you (or your personnel) provide those services Neither you nor any of your personnel shall accept cash or any other payment from a customer for services provided All payments must be made directly to Expert by the customer

Yours sincerely for and on behalf of Expert Logistics Limited

Signed

Print name

Print position

Date

I have read and understood the attached letter and acknowledge and agree its terms

Crew name

SIGNED

DATE

Appendix 3 Fines Schedule

Appendix 4 Similarity with other tribunal cases

Aslam Farrar and Others v Uber httpwwwbbccouknewsbusiness-37802386 httpswwwjudiciarygovukwp-contentuploads201610aslam-and-farrar-v-uber-reasons-20161028pd bull October 2016 bull Ruled that drivers were entitled to holiday pay paid rest breaks and the national minimum

wage bull Reclassified as workers rather than ldquoself-employed contractorsrdquo as Uber argued

Reasons for the ruling bull ldquoIt is not real to regard Uber as working lsquoforrsquo drivers and that the only sensible interpretation

is that the relationship is the other way around Uber runs a transportation business The drivers provide the skilled labour through which the organisation delivers its services and earns its profitsrdquo This is based on the fact that

o Uber interviews and recruits drivers o Uber controls the key information and excludes the driver from it o Uber requires drivers to accept trips andor not to cancel trips and enforces the

requirement by logging off drivers who breach those requirements o Uber sets the (default) route o Uber imposes numerous conditions on drivers (such as the limited choice of

acceptable vehicles) instructs drivers as to how to do their work and in numerous ways controls them in the performance of their duties7

o Uber determines issues about rebates sometimes without even involving the driver whose remuneration is liable to be affected

o Uber accepts the risk of loss which if the drivers were genuinely in business on their own account would fall upon them

o Uber handles complaints by passengers including complaints about the driver o Uber reserves the power to amend the driversrsquo terms unilaterally

In all these respects Expert Logistic drivers are similar to Uber

Dewhurst v CitySprint UK httpwwwbbccouknewsbusiness-38534524 httpswwwwjmcouknewsjanuary--employment-law-bulletindewhurst-v-city-sprint-uk bull 6th January 2017 bull Tribunal found that Maggie Dewhurst a courier for CitySprint should be classed as a worker

rather than self-employed bull Dewhurst brought a claim before the London Employment tribunal in respect of 2 daysrsquo

unpaid holiday pay bull She would thus be entitled to basic rights including holiday and sick pay and minimum

wage bull Dewhurst said ldquoWe spend all day being told what to do when to do it and how to do it

Wersquore under their controlrdquo

7 Appendix 3 Fines Schedules

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 15: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

Appendix 2 Example Contract

9) In order co ensure satisfaction for Experts cust0mers and following a reqesr by Expert to proYide services which you have accepted if you are unable to pnlMde those services whemer by reason of illnessinjury of yourself or third parties or otilenorise you must give as much notice as possible Should Expert incur additional costs as a restit of your failure to A provide services that have been agreed we reserve the right to seek corpersation from ll you

I 0) It is agreed that you are not an employee of Expert and will be responsible for n-aking the appropriate PAYE deductions for tax and national insurance contributions from the money which you pay to other crew members together with your own income taX deductions and national insurance You agree to indemnify Expert in respect of any claims that may be made by HM Revenue and Cuscoms for any failure to do so

11) You will be provided with a fully fuelled Expert delivery vehicle to carry out your deliveries Expert agrees to pay you for each daily route which is calculated using the rate for each depot This amount will be agreed at the time of Expert requesting the provision of services but is subject to adjustment under clause 18 Expert operaces a self-billing procedure under which it will endeavour to make payment to you by the Monday of the week following the week in which the relevant delivery is completed You agree co enter a self-billing agreement in such form as Expert requires from time to time The current forms required are at Appendix I if VAT registered or Appendix 2 if not VAT registered lffurther expenses are incurred or additional services are carried otrt on behalf of Expert men a Additional Payment Claim Sheet (Appendix 3) will need to be completed and submitted before a payment is made and payment will only be made if the expenses or additional services have been authorised in advance by the transport or an outbase manager We will deduct a deposit of pound100 which will be taken from your first two weekly invoices for the Expert property you will be given Please sign Appendix 4 enclosed confirming your acceptance of these items On termination of this contract by either party this deposit will be refunded to you in full providing that both the phone and HHT device are in good condition when they are returned Without affecting any other rights we have we may deduct from that deposit any losses we suffer as a result of your breach of this agreement

12) Driver Bank details must be completed using Appendix 5 to enable payment of your fees However should any of your details or circumstances change thereafter then please inform the Company as soon as possible using Appendix 6

13) You will indemnify Expert for all costs incurred in connection with the provision of the services as a result of any deliberate or negligent act or omission of yours andor your crew member(s) This includes vehicle damage to Expert vehicles damaged lost or stolen products or property third party property damage including vehicle damage and all other damage to persons and property whatsoever Expert will issue a debit note for any costs mat you need to pay Expert and (without prejudice to any other remedies it has) may deduct these from any payment due to you

14) Expert carries out monitoring in order to protect the interests of the Company and other road users and its customers Such recording will take place by way of a video camera within the cab another within the box itself one outside the vehicle facing forward and one at tile rear of the vehicle These cameras are operational at all times whilst the vehicle is in your possession The purpose of the monitoring is to a Check the quantity and quality of services provided by you as one of its subshy

contractors b Safeguard you

c Check compliance with all applicable laws including laws relating to Health and Safety

d Assist in dealing with customer complaints

The information collected will be viewed routinely by the Company for these purposes

Expert has carried out an assessment to ensure that the way in which it records or processes this information is lawful and fair to you and other sub-contraCtOrs It is satisfied that the monitoring that will take place is fair and will not intrude into your and other subshycontractors private lives Any adverse impact on any sub-contractor is considered by the Company to be justified by the benefits to the Company customers and other subshycontractors The Company is satisfied that there is no other way in which the Company can reasonably achieve the purposes set out above Nevertheless if you have any concern about the monitoring you should report them in writing to the Expert Transport Department

By signing this letter you are confirming you understand and accept and agree that the Company may undertake this monitoring and that you will not tamper with or otherwise interiere with the proper operation of the monitoring equipment

15) Under no circumstances must Experts vehicles uniforms or telephones be used for any business other than that directly associated with the delivery of services for Expert

16) You must (and muse ensure that your crew member(s) and any ocher person(s) you use to provide the services under this agreement) comply with Experts customer services policies and procedures at all times

17) You agree to and understand the Substance Misuse Policy by signing Appendix 7 You must ensure that your crew members and any other persons you use to provide the services under this agreement comply with this policy at all times

18) Your fees will be subject to reduction as set out in Appendix 8 in the event that you fail to provide your services in accordance with our requirements From time to time we may amend Appendix 8 (both as to the requirements and the fee reductions) and the amendments will be effective in respect of all services provided by you after the amendments have been notified to you

19) Neither you nor any of the personnel you use to perform the services may enter into any binding contract or other commitment on behalf of Expert nor make any representations or give any warranties or guarantees in relation to the business of the Company or to goods or services supplied by it nor incur any liability whatsoever on behalf of Expert

20) This agreement may be terminated by either party by giving one weeks notice in writing to the other or by Expert with immediate effect if you (or any of your personnel) commit a material breach of any of its terms or of the terms of any of the policies andor procedures referred to in it

21) Following termination by either party your final payment (subject to deduction of any monies due to us) will be paid 28days after termination

22) All information provided to you by Expert relating to customers and the orders for goods placed by customers is strictly confidential You must only use (and you must

expert logistics

ensure that your mates employees and sub-contractors only use) that information for the purposes of this agreement You must not disclose (and you must ensure your mates employees and subcontractors do not disclose) that information to any third parcy unless you (or they) are required by law to do so You must comply (and you must ensure your mates employees and sub-contractors comply) with the provisions of the Data Protection Act 1998 and all other applicable legislation and codes of practice in relation to that information and its processing

23) You agree that neither you nor any of the personnel you use to carry out the services will provide any other services to any customer of Expert apart from those services

that you have agreed with Expert to provide to that customer In particular but without limitation neither you nor any of your personnel shall agree to provide any scrap removal or installation services for a customer unless these have been agreed beforehand by Expert If a customer requires the provision of services that are not in accordance with the details agreed by you with Expert you (or your personnel) must refer the matter to the Contact Centre for Expert to agree those services with and take payment from the customer before you (or your personnel) provide those services Neither you nor any of your personnel shall accept cash or any other payment from a customer for services provided All payments must be made directly to Expert by the customer

Yours sincerely for and on behalf of Expert Logistics Limited

Signed

Print name

Print position

Date

I have read and understood the attached letter and acknowledge and agree its terms

Crew name

SIGNED

DATE

Appendix 3 Fines Schedule

Appendix 4 Similarity with other tribunal cases

Aslam Farrar and Others v Uber httpwwwbbccouknewsbusiness-37802386 httpswwwjudiciarygovukwp-contentuploads201610aslam-and-farrar-v-uber-reasons-20161028pd bull October 2016 bull Ruled that drivers were entitled to holiday pay paid rest breaks and the national minimum

wage bull Reclassified as workers rather than ldquoself-employed contractorsrdquo as Uber argued

Reasons for the ruling bull ldquoIt is not real to regard Uber as working lsquoforrsquo drivers and that the only sensible interpretation

is that the relationship is the other way around Uber runs a transportation business The drivers provide the skilled labour through which the organisation delivers its services and earns its profitsrdquo This is based on the fact that

o Uber interviews and recruits drivers o Uber controls the key information and excludes the driver from it o Uber requires drivers to accept trips andor not to cancel trips and enforces the

requirement by logging off drivers who breach those requirements o Uber sets the (default) route o Uber imposes numerous conditions on drivers (such as the limited choice of

acceptable vehicles) instructs drivers as to how to do their work and in numerous ways controls them in the performance of their duties7

o Uber determines issues about rebates sometimes without even involving the driver whose remuneration is liable to be affected

o Uber accepts the risk of loss which if the drivers were genuinely in business on their own account would fall upon them

o Uber handles complaints by passengers including complaints about the driver o Uber reserves the power to amend the driversrsquo terms unilaterally

In all these respects Expert Logistic drivers are similar to Uber

Dewhurst v CitySprint UK httpwwwbbccouknewsbusiness-38534524 httpswwwwjmcouknewsjanuary--employment-law-bulletindewhurst-v-city-sprint-uk bull 6th January 2017 bull Tribunal found that Maggie Dewhurst a courier for CitySprint should be classed as a worker

rather than self-employed bull Dewhurst brought a claim before the London Employment tribunal in respect of 2 daysrsquo

unpaid holiday pay bull She would thus be entitled to basic rights including holiday and sick pay and minimum

wage bull Dewhurst said ldquoWe spend all day being told what to do when to do it and how to do it

Wersquore under their controlrdquo

7 Appendix 3 Fines Schedules

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 16: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

9) In order co ensure satisfaction for Experts cust0mers and following a reqesr by Expert to proYide services which you have accepted if you are unable to pnlMde those services whemer by reason of illnessinjury of yourself or third parties or otilenorise you must give as much notice as possible Should Expert incur additional costs as a restit of your failure to A provide services that have been agreed we reserve the right to seek corpersation from ll you

I 0) It is agreed that you are not an employee of Expert and will be responsible for n-aking the appropriate PAYE deductions for tax and national insurance contributions from the money which you pay to other crew members together with your own income taX deductions and national insurance You agree to indemnify Expert in respect of any claims that may be made by HM Revenue and Cuscoms for any failure to do so

11) You will be provided with a fully fuelled Expert delivery vehicle to carry out your deliveries Expert agrees to pay you for each daily route which is calculated using the rate for each depot This amount will be agreed at the time of Expert requesting the provision of services but is subject to adjustment under clause 18 Expert operaces a self-billing procedure under which it will endeavour to make payment to you by the Monday of the week following the week in which the relevant delivery is completed You agree co enter a self-billing agreement in such form as Expert requires from time to time The current forms required are at Appendix I if VAT registered or Appendix 2 if not VAT registered lffurther expenses are incurred or additional services are carried otrt on behalf of Expert men a Additional Payment Claim Sheet (Appendix 3) will need to be completed and submitted before a payment is made and payment will only be made if the expenses or additional services have been authorised in advance by the transport or an outbase manager We will deduct a deposit of pound100 which will be taken from your first two weekly invoices for the Expert property you will be given Please sign Appendix 4 enclosed confirming your acceptance of these items On termination of this contract by either party this deposit will be refunded to you in full providing that both the phone and HHT device are in good condition when they are returned Without affecting any other rights we have we may deduct from that deposit any losses we suffer as a result of your breach of this agreement

12) Driver Bank details must be completed using Appendix 5 to enable payment of your fees However should any of your details or circumstances change thereafter then please inform the Company as soon as possible using Appendix 6

13) You will indemnify Expert for all costs incurred in connection with the provision of the services as a result of any deliberate or negligent act or omission of yours andor your crew member(s) This includes vehicle damage to Expert vehicles damaged lost or stolen products or property third party property damage including vehicle damage and all other damage to persons and property whatsoever Expert will issue a debit note for any costs mat you need to pay Expert and (without prejudice to any other remedies it has) may deduct these from any payment due to you

14) Expert carries out monitoring in order to protect the interests of the Company and other road users and its customers Such recording will take place by way of a video camera within the cab another within the box itself one outside the vehicle facing forward and one at tile rear of the vehicle These cameras are operational at all times whilst the vehicle is in your possession The purpose of the monitoring is to a Check the quantity and quality of services provided by you as one of its subshy

contractors b Safeguard you

c Check compliance with all applicable laws including laws relating to Health and Safety

d Assist in dealing with customer complaints

The information collected will be viewed routinely by the Company for these purposes

Expert has carried out an assessment to ensure that the way in which it records or processes this information is lawful and fair to you and other sub-contraCtOrs It is satisfied that the monitoring that will take place is fair and will not intrude into your and other subshycontractors private lives Any adverse impact on any sub-contractor is considered by the Company to be justified by the benefits to the Company customers and other subshycontractors The Company is satisfied that there is no other way in which the Company can reasonably achieve the purposes set out above Nevertheless if you have any concern about the monitoring you should report them in writing to the Expert Transport Department

By signing this letter you are confirming you understand and accept and agree that the Company may undertake this monitoring and that you will not tamper with or otherwise interiere with the proper operation of the monitoring equipment

15) Under no circumstances must Experts vehicles uniforms or telephones be used for any business other than that directly associated with the delivery of services for Expert

16) You must (and muse ensure that your crew member(s) and any ocher person(s) you use to provide the services under this agreement) comply with Experts customer services policies and procedures at all times

17) You agree to and understand the Substance Misuse Policy by signing Appendix 7 You must ensure that your crew members and any other persons you use to provide the services under this agreement comply with this policy at all times

18) Your fees will be subject to reduction as set out in Appendix 8 in the event that you fail to provide your services in accordance with our requirements From time to time we may amend Appendix 8 (both as to the requirements and the fee reductions) and the amendments will be effective in respect of all services provided by you after the amendments have been notified to you

19) Neither you nor any of the personnel you use to perform the services may enter into any binding contract or other commitment on behalf of Expert nor make any representations or give any warranties or guarantees in relation to the business of the Company or to goods or services supplied by it nor incur any liability whatsoever on behalf of Expert

20) This agreement may be terminated by either party by giving one weeks notice in writing to the other or by Expert with immediate effect if you (or any of your personnel) commit a material breach of any of its terms or of the terms of any of the policies andor procedures referred to in it

21) Following termination by either party your final payment (subject to deduction of any monies due to us) will be paid 28days after termination

22) All information provided to you by Expert relating to customers and the orders for goods placed by customers is strictly confidential You must only use (and you must

expert logistics

ensure that your mates employees and sub-contractors only use) that information for the purposes of this agreement You must not disclose (and you must ensure your mates employees and subcontractors do not disclose) that information to any third parcy unless you (or they) are required by law to do so You must comply (and you must ensure your mates employees and sub-contractors comply) with the provisions of the Data Protection Act 1998 and all other applicable legislation and codes of practice in relation to that information and its processing

23) You agree that neither you nor any of the personnel you use to carry out the services will provide any other services to any customer of Expert apart from those services

that you have agreed with Expert to provide to that customer In particular but without limitation neither you nor any of your personnel shall agree to provide any scrap removal or installation services for a customer unless these have been agreed beforehand by Expert If a customer requires the provision of services that are not in accordance with the details agreed by you with Expert you (or your personnel) must refer the matter to the Contact Centre for Expert to agree those services with and take payment from the customer before you (or your personnel) provide those services Neither you nor any of your personnel shall accept cash or any other payment from a customer for services provided All payments must be made directly to Expert by the customer

Yours sincerely for and on behalf of Expert Logistics Limited

Signed

Print name

Print position

Date

I have read and understood the attached letter and acknowledge and agree its terms

Crew name

SIGNED

DATE

Appendix 3 Fines Schedule

Appendix 4 Similarity with other tribunal cases

Aslam Farrar and Others v Uber httpwwwbbccouknewsbusiness-37802386 httpswwwjudiciarygovukwp-contentuploads201610aslam-and-farrar-v-uber-reasons-20161028pd bull October 2016 bull Ruled that drivers were entitled to holiday pay paid rest breaks and the national minimum

wage bull Reclassified as workers rather than ldquoself-employed contractorsrdquo as Uber argued

Reasons for the ruling bull ldquoIt is not real to regard Uber as working lsquoforrsquo drivers and that the only sensible interpretation

is that the relationship is the other way around Uber runs a transportation business The drivers provide the skilled labour through which the organisation delivers its services and earns its profitsrdquo This is based on the fact that

o Uber interviews and recruits drivers o Uber controls the key information and excludes the driver from it o Uber requires drivers to accept trips andor not to cancel trips and enforces the

requirement by logging off drivers who breach those requirements o Uber sets the (default) route o Uber imposes numerous conditions on drivers (such as the limited choice of

acceptable vehicles) instructs drivers as to how to do their work and in numerous ways controls them in the performance of their duties7

o Uber determines issues about rebates sometimes without even involving the driver whose remuneration is liable to be affected

o Uber accepts the risk of loss which if the drivers were genuinely in business on their own account would fall upon them

o Uber handles complaints by passengers including complaints about the driver o Uber reserves the power to amend the driversrsquo terms unilaterally

In all these respects Expert Logistic drivers are similar to Uber

Dewhurst v CitySprint UK httpwwwbbccouknewsbusiness-38534524 httpswwwwjmcouknewsjanuary--employment-law-bulletindewhurst-v-city-sprint-uk bull 6th January 2017 bull Tribunal found that Maggie Dewhurst a courier for CitySprint should be classed as a worker

rather than self-employed bull Dewhurst brought a claim before the London Employment tribunal in respect of 2 daysrsquo

unpaid holiday pay bull She would thus be entitled to basic rights including holiday and sick pay and minimum

wage bull Dewhurst said ldquoWe spend all day being told what to do when to do it and how to do it

Wersquore under their controlrdquo

7 Appendix 3 Fines Schedules

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 17: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

c Check compliance with all applicable laws including laws relating to Health and Safety

d Assist in dealing with customer complaints

The information collected will be viewed routinely by the Company for these purposes

Expert has carried out an assessment to ensure that the way in which it records or processes this information is lawful and fair to you and other sub-contraCtOrs It is satisfied that the monitoring that will take place is fair and will not intrude into your and other subshycontractors private lives Any adverse impact on any sub-contractor is considered by the Company to be justified by the benefits to the Company customers and other subshycontractors The Company is satisfied that there is no other way in which the Company can reasonably achieve the purposes set out above Nevertheless if you have any concern about the monitoring you should report them in writing to the Expert Transport Department

By signing this letter you are confirming you understand and accept and agree that the Company may undertake this monitoring and that you will not tamper with or otherwise interiere with the proper operation of the monitoring equipment

15) Under no circumstances must Experts vehicles uniforms or telephones be used for any business other than that directly associated with the delivery of services for Expert

16) You must (and muse ensure that your crew member(s) and any ocher person(s) you use to provide the services under this agreement) comply with Experts customer services policies and procedures at all times

17) You agree to and understand the Substance Misuse Policy by signing Appendix 7 You must ensure that your crew members and any other persons you use to provide the services under this agreement comply with this policy at all times

18) Your fees will be subject to reduction as set out in Appendix 8 in the event that you fail to provide your services in accordance with our requirements From time to time we may amend Appendix 8 (both as to the requirements and the fee reductions) and the amendments will be effective in respect of all services provided by you after the amendments have been notified to you

19) Neither you nor any of the personnel you use to perform the services may enter into any binding contract or other commitment on behalf of Expert nor make any representations or give any warranties or guarantees in relation to the business of the Company or to goods or services supplied by it nor incur any liability whatsoever on behalf of Expert

20) This agreement may be terminated by either party by giving one weeks notice in writing to the other or by Expert with immediate effect if you (or any of your personnel) commit a material breach of any of its terms or of the terms of any of the policies andor procedures referred to in it

21) Following termination by either party your final payment (subject to deduction of any monies due to us) will be paid 28days after termination

22) All information provided to you by Expert relating to customers and the orders for goods placed by customers is strictly confidential You must only use (and you must

expert logistics

ensure that your mates employees and sub-contractors only use) that information for the purposes of this agreement You must not disclose (and you must ensure your mates employees and subcontractors do not disclose) that information to any third parcy unless you (or they) are required by law to do so You must comply (and you must ensure your mates employees and sub-contractors comply) with the provisions of the Data Protection Act 1998 and all other applicable legislation and codes of practice in relation to that information and its processing

23) You agree that neither you nor any of the personnel you use to carry out the services will provide any other services to any customer of Expert apart from those services

that you have agreed with Expert to provide to that customer In particular but without limitation neither you nor any of your personnel shall agree to provide any scrap removal or installation services for a customer unless these have been agreed beforehand by Expert If a customer requires the provision of services that are not in accordance with the details agreed by you with Expert you (or your personnel) must refer the matter to the Contact Centre for Expert to agree those services with and take payment from the customer before you (or your personnel) provide those services Neither you nor any of your personnel shall accept cash or any other payment from a customer for services provided All payments must be made directly to Expert by the customer

Yours sincerely for and on behalf of Expert Logistics Limited

Signed

Print name

Print position

Date

I have read and understood the attached letter and acknowledge and agree its terms

Crew name

SIGNED

DATE

Appendix 3 Fines Schedule

Appendix 4 Similarity with other tribunal cases

Aslam Farrar and Others v Uber httpwwwbbccouknewsbusiness-37802386 httpswwwjudiciarygovukwp-contentuploads201610aslam-and-farrar-v-uber-reasons-20161028pd bull October 2016 bull Ruled that drivers were entitled to holiday pay paid rest breaks and the national minimum

wage bull Reclassified as workers rather than ldquoself-employed contractorsrdquo as Uber argued

Reasons for the ruling bull ldquoIt is not real to regard Uber as working lsquoforrsquo drivers and that the only sensible interpretation

is that the relationship is the other way around Uber runs a transportation business The drivers provide the skilled labour through which the organisation delivers its services and earns its profitsrdquo This is based on the fact that

o Uber interviews and recruits drivers o Uber controls the key information and excludes the driver from it o Uber requires drivers to accept trips andor not to cancel trips and enforces the

requirement by logging off drivers who breach those requirements o Uber sets the (default) route o Uber imposes numerous conditions on drivers (such as the limited choice of

acceptable vehicles) instructs drivers as to how to do their work and in numerous ways controls them in the performance of their duties7

o Uber determines issues about rebates sometimes without even involving the driver whose remuneration is liable to be affected

o Uber accepts the risk of loss which if the drivers were genuinely in business on their own account would fall upon them

o Uber handles complaints by passengers including complaints about the driver o Uber reserves the power to amend the driversrsquo terms unilaterally

In all these respects Expert Logistic drivers are similar to Uber

Dewhurst v CitySprint UK httpwwwbbccouknewsbusiness-38534524 httpswwwwjmcouknewsjanuary--employment-law-bulletindewhurst-v-city-sprint-uk bull 6th January 2017 bull Tribunal found that Maggie Dewhurst a courier for CitySprint should be classed as a worker

rather than self-employed bull Dewhurst brought a claim before the London Employment tribunal in respect of 2 daysrsquo

unpaid holiday pay bull She would thus be entitled to basic rights including holiday and sick pay and minimum

wage bull Dewhurst said ldquoWe spend all day being told what to do when to do it and how to do it

Wersquore under their controlrdquo

7 Appendix 3 Fines Schedules

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 18: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

expert logistics

ensure that your mates employees and sub-contractors only use) that information for the purposes of this agreement You must not disclose (and you must ensure your mates employees and subcontractors do not disclose) that information to any third parcy unless you (or they) are required by law to do so You must comply (and you must ensure your mates employees and sub-contractors comply) with the provisions of the Data Protection Act 1998 and all other applicable legislation and codes of practice in relation to that information and its processing

23) You agree that neither you nor any of the personnel you use to carry out the services will provide any other services to any customer of Expert apart from those services

that you have agreed with Expert to provide to that customer In particular but without limitation neither you nor any of your personnel shall agree to provide any scrap removal or installation services for a customer unless these have been agreed beforehand by Expert If a customer requires the provision of services that are not in accordance with the details agreed by you with Expert you (or your personnel) must refer the matter to the Contact Centre for Expert to agree those services with and take payment from the customer before you (or your personnel) provide those services Neither you nor any of your personnel shall accept cash or any other payment from a customer for services provided All payments must be made directly to Expert by the customer

Yours sincerely for and on behalf of Expert Logistics Limited

Signed

Print name

Print position

Date

I have read and understood the attached letter and acknowledge and agree its terms

Crew name

SIGNED

DATE

Appendix 3 Fines Schedule

Appendix 4 Similarity with other tribunal cases

Aslam Farrar and Others v Uber httpwwwbbccouknewsbusiness-37802386 httpswwwjudiciarygovukwp-contentuploads201610aslam-and-farrar-v-uber-reasons-20161028pd bull October 2016 bull Ruled that drivers were entitled to holiday pay paid rest breaks and the national minimum

wage bull Reclassified as workers rather than ldquoself-employed contractorsrdquo as Uber argued

Reasons for the ruling bull ldquoIt is not real to regard Uber as working lsquoforrsquo drivers and that the only sensible interpretation

is that the relationship is the other way around Uber runs a transportation business The drivers provide the skilled labour through which the organisation delivers its services and earns its profitsrdquo This is based on the fact that

o Uber interviews and recruits drivers o Uber controls the key information and excludes the driver from it o Uber requires drivers to accept trips andor not to cancel trips and enforces the

requirement by logging off drivers who breach those requirements o Uber sets the (default) route o Uber imposes numerous conditions on drivers (such as the limited choice of

acceptable vehicles) instructs drivers as to how to do their work and in numerous ways controls them in the performance of their duties7

o Uber determines issues about rebates sometimes without even involving the driver whose remuneration is liable to be affected

o Uber accepts the risk of loss which if the drivers were genuinely in business on their own account would fall upon them

o Uber handles complaints by passengers including complaints about the driver o Uber reserves the power to amend the driversrsquo terms unilaterally

In all these respects Expert Logistic drivers are similar to Uber

Dewhurst v CitySprint UK httpwwwbbccouknewsbusiness-38534524 httpswwwwjmcouknewsjanuary--employment-law-bulletindewhurst-v-city-sprint-uk bull 6th January 2017 bull Tribunal found that Maggie Dewhurst a courier for CitySprint should be classed as a worker

rather than self-employed bull Dewhurst brought a claim before the London Employment tribunal in respect of 2 daysrsquo

unpaid holiday pay bull She would thus be entitled to basic rights including holiday and sick pay and minimum

wage bull Dewhurst said ldquoWe spend all day being told what to do when to do it and how to do it

Wersquore under their controlrdquo

7 Appendix 3 Fines Schedules

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 19: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

Appendix 3 Fines Schedule

Appendix 4 Similarity with other tribunal cases

Aslam Farrar and Others v Uber httpwwwbbccouknewsbusiness-37802386 httpswwwjudiciarygovukwp-contentuploads201610aslam-and-farrar-v-uber-reasons-20161028pd bull October 2016 bull Ruled that drivers were entitled to holiday pay paid rest breaks and the national minimum

wage bull Reclassified as workers rather than ldquoself-employed contractorsrdquo as Uber argued

Reasons for the ruling bull ldquoIt is not real to regard Uber as working lsquoforrsquo drivers and that the only sensible interpretation

is that the relationship is the other way around Uber runs a transportation business The drivers provide the skilled labour through which the organisation delivers its services and earns its profitsrdquo This is based on the fact that

o Uber interviews and recruits drivers o Uber controls the key information and excludes the driver from it o Uber requires drivers to accept trips andor not to cancel trips and enforces the

requirement by logging off drivers who breach those requirements o Uber sets the (default) route o Uber imposes numerous conditions on drivers (such as the limited choice of

acceptable vehicles) instructs drivers as to how to do their work and in numerous ways controls them in the performance of their duties7

o Uber determines issues about rebates sometimes without even involving the driver whose remuneration is liable to be affected

o Uber accepts the risk of loss which if the drivers were genuinely in business on their own account would fall upon them

o Uber handles complaints by passengers including complaints about the driver o Uber reserves the power to amend the driversrsquo terms unilaterally

In all these respects Expert Logistic drivers are similar to Uber

Dewhurst v CitySprint UK httpwwwbbccouknewsbusiness-38534524 httpswwwwjmcouknewsjanuary--employment-law-bulletindewhurst-v-city-sprint-uk bull 6th January 2017 bull Tribunal found that Maggie Dewhurst a courier for CitySprint should be classed as a worker

rather than self-employed bull Dewhurst brought a claim before the London Employment tribunal in respect of 2 daysrsquo

unpaid holiday pay bull She would thus be entitled to basic rights including holiday and sick pay and minimum

wage bull Dewhurst said ldquoWe spend all day being told what to do when to do it and how to do it

Wersquore under their controlrdquo

7 Appendix 3 Fines Schedules

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 20: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

Appendix 4 Similarity with other tribunal cases

Aslam Farrar and Others v Uber httpwwwbbccouknewsbusiness-37802386 httpswwwjudiciarygovukwp-contentuploads201610aslam-and-farrar-v-uber-reasons-20161028pd bull October 2016 bull Ruled that drivers were entitled to holiday pay paid rest breaks and the national minimum

wage bull Reclassified as workers rather than ldquoself-employed contractorsrdquo as Uber argued

Reasons for the ruling bull ldquoIt is not real to regard Uber as working lsquoforrsquo drivers and that the only sensible interpretation

is that the relationship is the other way around Uber runs a transportation business The drivers provide the skilled labour through which the organisation delivers its services and earns its profitsrdquo This is based on the fact that

o Uber interviews and recruits drivers o Uber controls the key information and excludes the driver from it o Uber requires drivers to accept trips andor not to cancel trips and enforces the

requirement by logging off drivers who breach those requirements o Uber sets the (default) route o Uber imposes numerous conditions on drivers (such as the limited choice of

acceptable vehicles) instructs drivers as to how to do their work and in numerous ways controls them in the performance of their duties7

o Uber determines issues about rebates sometimes without even involving the driver whose remuneration is liable to be affected

o Uber accepts the risk of loss which if the drivers were genuinely in business on their own account would fall upon them

o Uber handles complaints by passengers including complaints about the driver o Uber reserves the power to amend the driversrsquo terms unilaterally

In all these respects Expert Logistic drivers are similar to Uber

Dewhurst v CitySprint UK httpwwwbbccouknewsbusiness-38534524 httpswwwwjmcouknewsjanuary--employment-law-bulletindewhurst-v-city-sprint-uk bull 6th January 2017 bull Tribunal found that Maggie Dewhurst a courier for CitySprint should be classed as a worker

rather than self-employed bull Dewhurst brought a claim before the London Employment tribunal in respect of 2 daysrsquo

unpaid holiday pay bull She would thus be entitled to basic rights including holiday and sick pay and minimum

wage bull Dewhurst said ldquoWe spend all day being told what to do when to do it and how to do it

Wersquore under their controlrdquo

7 Appendix 3 Fines Schedules

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 21: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

bull With 3500 couriers classed as self-employed CitySprint stressed that the decision would only apply to Dewhurst adding that further clarity is needed to help businesses navigate this area of law Reasons

o Dewhurst was employed as courier following a 2-day recruitment exercise consisting of an assessment entering an employment agreement and an induction course

o The contract gave Dewhurst discretion as to when she was available to take on jobs and how she would carry them out (eg she was free to set her own route)

o CitySprint was not obliged to offer jobs and Dewhurst was not obliged to accept them

o The judge gave weight to the fact that invoices were generated by the courier company and not the courier

o The right to sub-contract was impossible in practice due to the conditions placed on the courier and so amounted to no more than a paper right

o The company in practice exercised control over the couriersrsquo working patterns and the couriers did not have the opportunity to develop their business as ultimately it was CitySprint who allocated jobs

Smith v Pimlico Plumbers httpswwwjudiciarygovukwp-contentuploads201702pimlico-plumbers-v-smithpdf httpswwwtheguardiancombusiness2017feb10pimlico-loses-appeal-against-plumbers-worker-status-in-gig-economy-case bull 10th February 2017 bull Gary Smith worked as at Pimlico Plumbers for 6 years until 2011 bull When he suffered a heart attack in 2010 wanted to cut 5-day week to 3 days bull However the firm refused and took away his branded vehicle that he had hired bull Smith complained of unfair dismissal and entitlement to pay during medical suspension

holiday pay and arrears of pay Also claimed disability discrimination bull Issue addressed regarding whether Smith was an employee worker or genuinely self-

employed bull Ruled he should be entitled to claim on disability discrimination and also holiday pay as well

as unauthorised deductions from wages bull Maria Ludkin the GMBrsquos legal director said ldquoThis case like the Uber case last October is

yet another victory for the bogus self-employed who have been treated appallingly by their employerrdquo

Reasons for the ruling bull Mr Smithrsquos contract required him to provide work on the days agreed with the PP bull Although there was some flexibility PP expected engineers to discuss their working hours

with and to agree them with PP bull Mr Smith had sufficient obligation to provide his work personally to be a worker bull Although Mr Smith had autonomy in relation to the estimates and work done PP exercised

very tight control in most other respects bull PP could not be considered to be a client or customer of Mr Smithrsquos business but is better

regarded as a principal Mr Smith was an integral part of PPrsquos operations and subordinate to PP ndash his business was not on his own account

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 22: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

Other Cases

Hermes httpswwwtheguardiancombusiness2016nov24hermes-drivers-told-of-mandatory-sundays-over-black-friday-rush bull Apparently lsquoself-employedrsquo drivers told that it is ldquomandatoryrdquo to work on Black Friday bull This contradicts the companyrsquos previous instance that the work was ldquocompletely optionalrdquo bull The message sent by a field manager stated ldquoIt is mandatory that you cover your own

rounds this Sunday the 27th and next Sunday the 4th of December If you must supply your own cover and informed of who by now [sic] hellip No excusesrdquo

bull Health and Safety Executive considers concerns raised by Frank Field MP the chair of the work and pensions select committee that fatigued couriers working seven days a week could pose a road safety risk

httpswwwtheguardiancombusiness2016nov20road-safety-risk-tired-black-friday-delivery-drivers-health-and-safety-executive bull Hermes asked 5000 staff to work 20 days without a break

Deliveroo bull The GMB union is supporting a group of Deliveroo couriers in Brighton who have served 2

weeksrsquo notice to their employers to offer better pay and more hours bull httpwwwbbccouknewsuk-37905425

o Billy Shannon a rider who works for Deliveroo in Camden said riders receive pound375 per delivery

o He added ldquoWe donrsquot get an hourly fee so that means at times when there arenrsquot that many deliveries and it is not that busy we can be waiting for up to an hour for a delivery without getting a pennyrdquo

o Letter from Independent Workers Union of Great Britain (IWGB) asking Deliveroo for recognition for the union to bargain on behalf of the group ndash however collective bargaining laws in UK apply to those classed as workers and employees but not independent contractors

o IWGB general secretary Dr Jason Moyer-Lee said it was seeking a collective bargaining agreement to allow the union to negotiate pay and terms and conditions with Deliveroo managers

o He added ldquoIf Deliveroo ignores or rejects our request then we will take them to tribunal and ask for a declaration that Deliveroo must engage in collective bargaining with usrdquo

o This would benefit 8000 Deliveroo riders

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 23: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

Appendix 5 What AO World amp Expert Logistics have to say about employees in their Public Statements John Roberts CEO of aocom8

ldquoIt is important our drivers are happy They are the only ones that actually get to meet the customer face-to-facehellip If they turn up grumpy smelling of BO the customer is unlikely to use you again no matter how good the price isrdquo

ldquoFor example in our depot we have a guy who is responsible for putting two bottles of water in each delivery lorry Its a small detail but it makes our drivers happy and feel valuedrdquo

Expert Logistics website

ldquoWith Our People At Our Core

Our business is all about getting appliances to the customerrsquos homes ndash delivering the right product to the right place at the right time But we also spend just as much time and energy on our employees Thatrsquos because we see ourselves as one big family loyal caring and supportive Itrsquos just one of the reasons why the people we work for and those that work for us like us so muchrdquo9

8 httpwwwthisismoneycoukmoneycommentarticle-3586725A-coffee-founder-AO-com-John-Roberts-good-customer-service-manic-float-fleet-lorries-large-EU-bridgeshtml

9 httpwwwexpertlogisticscoukwhat-we-do

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 24: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

Appendix 6 Statements from AO World ndash Annual Report

2000 John Roberts founded appliances online after the famous pound1 bet 2004 Appliances online secured its first major third party retail client 2009 Acquired Expert Logistics to own our distribution 2012 Launched SDA category and move a new 360000 sq ft warehouse in Crewe

Our strategy the 4 Cs

Culture amp Brand

Our culture and values are fundamental to our business and through nurturing and growing this culture we will be able to deliver the best customer experience broaden our categories expand into new countries drive our operations and ultimately achieve our goal

We recruit and retain the best talent and look for people who are smart bold and driven They must care more not only about our customers but other stakeholders of the business too be the manufacturers and suppliers other employees and of course our drivers and do it all with a sense of fun

Our values can be found in every single one of our AO people We hire and fire against them and they are everything our brand stands for our culture and how our people act will be how our brand is perceived externally

The risks affecting our culture and brand are highlighted on page 23 to 25

My journey to the Croydon depot

ldquoSo over the course of the year Irsquove been travelling around our business more than ever

It made me immensely proud to see the passion these guys had to just make sure that the turn-around was as quick as possible and their jobs were done well They even put cold bottles of water in to the cabs for the drivers They understood that if they did a great job then our drivers would have a better day which in turn means theyrsquore more likely to be exceptional in the moments that matter It was clear that they lived it that way It wasnrsquot because I was there you just canrsquot fake it to that level and certainly not at 2am

It sounds simple doesnrsquot it But it really isnrsquot Mobilising a tribe the size of ours to care about every detail more than anyone else does is the smart thing to do but exceptional customer service canrsquot be switched on overnight Itrsquos the cumulative effect of thousands of little things coming together that make it look easy but again things that look effortless very rarely arerdquo

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 25: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

Strong management and culture

Our employees

Happy people care more and require a lot less management So we make sure theyrsquore happy by giving them autonomy where appropriate support where needed and a great environment to work in They are empowered they are incentivised and they know where they are trusted We love watching them grow and thrive

Processes and Systems

We believe that the standard of the delivery service we provide is crucial itrsquos a key part of our lsquopixie dustrsquo given and delivery teams are typically the only face-to-face interaction that customers have with the company

In the UK we run a dual branded fleet as out two-man delivery service is also used by a small number of third parties who ask us to deliver their own products through our network on their behalf

Employee empowerment

Empowering our people is as important as ever After all happy employees are more engaged deliver better service and require less management

We also have our monthly state of the nation which updates our colleagues on business activities as well the social side of life across the group which is live streamed to all of our locations At each session we present awards based on our values to recognise those going above and beyond in terms of both work and culture Once again wersquoll be carrying out our employee survey which provides an invaluable insight and allows us to be constantly improving as an employer In January this year we launched our third save-as-you-earn scheme which was open to all employees who had passed their probationary period Once again the take-up was strong with almost 20 of eligible employees participating in the option scheme

Equal opportunities

AO is also committed to an equal opportunities policy We aim to ensure that no employee is discriminated against directly or indirectly on the grounds of colour race ethnic or national origins sexual orientation or gender marital status disability religion or belief

As part of our programme to develop the next generation of leaders we enrol our younger colleges on the Duke of Edinburgh scheme The programme is focused on instilling the values and behaviours that make AO what it is and what it will be in the future To date we have taken on 21 apprentices in the UK with 16 of these joining the company last year

2 John Roberts founder and chief executive officer

Electrical appliances moment of happiness You canrsquot beat an ice cold beer in the evening the perfect way to unwind process the day and think about what is next

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 26: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

------------------------------------------------------------------------------------------------

Appendix 7 AO World Annual Confirmation Statement

Company Name AO WORLD PLC Company Number 05525751 Confirmation Statement date 02082016

Statement of Capital (Share Capital)

Class of Shares ORDINARY Number allotted 421052631 SHARES Aggregate nominal value 10526315775 Currency GBP Prescribed particulars

ORDINARY SHARES HAVE FULL RIGHTS IN THE COMPANY WITH RESPECT TO VOTING DIVIDENDS AND DISTRIBUTIONS EACH SHARE IS ENTITLED TO ONE VOTE IN ANY CIRCUMSTANCES THE SHARES ARE NOT REDEEMABLE

Statement of Capital (Totals)

Currency GBP Total number of shares 421052631 Total aggregate nominal 10526315775 value

Directors Remuneration Report

Annual Bonus

Up to 150 of salary for all Executive directors dependant on performance but a lower maximum may be operated

Total 201516- 1713687

For John Roberts and Steve Caunce benefits include gym membership medical and life assurance and a car allowance of pound12000 paid in cash for both years reported for Mark Higgins benefits include gym membership medical and life assurance car allowance and private fuel since his appointment on 1 August 2015

All employee share plans

The company proposes to roll out a new SAYE scheme each year and the executive directors will be entitled to participate on the same basis as other employees

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 27: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

Shares held Target Target Options beneficially at shareholding shareholding 31st March 2016 guidelines ( of achieved

salary) Richard Rose 723443 NA NA NA

John Roberts 109393583 100 Yes 7093

Steve Caunce 52122730 100 Yes 14400

Mark Higgins 23928 100 No 637272

Christopher Hopkins Brian McBride

22201590

52628

NA

NA

NA

NA

NA

NA

Marisa Cassoni 52628 NA NA NA

Rudolf Lamprecht 52628 NA NA NA

Charles(Bill) Holroyd

19815810 NA NA NA

1 Includes shares held by connected persons 2 Includes SAYE options and options granted under the PSP 3 Bill Holroyd was a director during the year but retired at the AGM on 21st July 2015

200910 201011 201112 201213 201314 201415 201516

Total remuneration (pound000) Annual Bonus () PSP vesting ()

680

59

_

292

18

_

243

0

_

227

0

_

537

0

_

537

0

_

588

10

_

Table shows the total remuneration figure for the chief executive during the financial years ending 31st March 2010 to 31st March 2016 The total remuneration figure includes the annual bonus payable for performance in each of those years

20 Subsidiaries

The group consists of the parent company AO world Plc incorporated in the UK and a number of subsidiaries held directly by AO World Plc

The table below shows details of all subsidiaries of the group as at 31st March 2016

Name of subsidiary Place of Principal place Proportion of Principal activity incorporation of business ownership

interests and voting rights held by AO World Plc

AO retail limited United Kingdom United Kingdom 100 Retail

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly

Page 28: Table of Contents - Parliament€¦ · Lewis and Argos. 1. The goods are sent from the main warehouse at Crewe to 10 bases (locally this is Spennymoor) and the goods are then delivered

Expert logistics United Kingdom United Kingdom 100 Logistics and limited transport Worry free limited United Kingdom United Kingdom 100 Dormant Elekdirect limited Appliances online limited

United Kingdom United Kingdom

United Kingdom United Kingdom

100 100

Retail Dormant

AO Deutschland limited

United Kingdom Germany 100 Retail

AO limited United Kingdom United Kingdom 100 Dormant AO BE SA Belgium Belgium 99 99 Dormant AO NL BV Netherlands Netherlands 100 Retail AO Netherlands Netherlands 100 Logistics and logistics(Netherlands) transport BV The recycled group United Kingdom United Kingdom 60 WEEE recycling limited WEEE collect it United Kingdom United Kingdom 60 Dormant limited WEEE re-use it United Kingdom United Kingdom 60 WEEE recycling limited

At 31st March 2016 a proportion (0 01) of the investment held in AO BE SE was indirectly held by AO world Plc through limited with the remainder (99 99) being held directly