MEMBERSHIP & BENEFITS

Membership is open to all umbrella companies that offer employment to their supplied freelance workers. This can be whether or not the company is part of an organisation that may also offer other services to contractors or freelancers, provided that the applicant is separately identified in line with our rules.

Membership & Benefits

Membership offers the following:

  • part of a new and exciting trade body
  • your chance to help set quality standards across the industry and build the reputation of umbrella companies
  • interface with government from a coordinated position
  • promotion/marketing of the AEMC and the role of umbrella companies within recruitment
  • provide a level playing field for all members in relation to tax related issues
  • evidence of ongoing compliance allowing access to agency PSL and offering a continuous MSC risk free solution
  • fully transparent and confidential process
  • professional management designed to help

All applicants are required to undergo a three part test including a legal and compliance audit and financial certification by chartered/certified accountants to achieve membership.

LEGAL AND COMPLIANCE AUDIT REQUIREMENTS

Approval of membership is subject to prior satisfactory legal and compliance audit and a financial certificate from the company auditors/accountants. Matters for the legal and compliance audit to ensure compliance include a review of the following:
  • the contract used with workers
  • any standard contract used by the applicant for issue to agencies or end hirers (some may not have this)
  • the timing of issue of employment contract and information to workers
  • relevant employment policies (e.g. health & safety, grievance & disciplinary, driving at work, holiday entitlement, SSP, SMP, and email & Internet usage)
  • evidence of correct payment of holiday pay
  • evidence of how any complaints made are handled, the existence of suitable complaints policy, and compliance with the policy
  • staff training and induction procedures
  • professional qualifications of directors and administrative staff
  • any Tribunal or Court proceedings within the last two years
  • marketing materials and marketing messages
  • Applicant's website and attributed news articles to ensure all messages are suitable and consistent with the required standard for the organisation concerned
The standard is to establish evidence of compliance with relevant legislation, contractual commitment, and professional practices.

FINANCIAL CERTIFICATION

Certification may only be issued by the Applicant's auditor or accountant, which must be a firm regulated either by the Institute of Chartered Accountants or the Association of Chartered Certified Accountants.
Certification must be in the form of an Independent Report (further details of the requirements are available), be provided on the auditor's (save where there is no statutory auditor because turnover is below the statutory limit) or accountant's notepaper and signed by a partner of the auditor or accountant. In addition, attached to Certification must be the following:
  • a copy of the Applicant's last audited accounts (please note that abbreviated accounts will not be sufficient) unless there has been no statutory audit,
  • a copy of the latest management accounts (dated no later than 1 month prior to date of the Certification) if either more than 2 months has passed since the date of the last audited accounts or there has been no statutory audit, and
  • the compliance standard list duly completed with each standard certified or otherwise and signed and dated.
Matters required to be certified include the following:
COMPLIANCE STANDARD LIST
Compliance Standard Certified
1. Applicant only pays its freelance employees by way of employment income and in particular does not make payments as dividends, loans or bonuses, nor utilises either directly or indirectly any scheme involving employee benefit trusts, offshore entities or any similar arrangements. Yes/No
2. Applicant only makes deductions from payments received in accordance with the freelance employees' contract and fully evidences all such deductions on payslips/remittances issued to freelance employees . Yes/No
3. Applicant has suitable accounting policies that do not conflict with any of the principles set out in AEMC's Code of Conduct . Yes/No
4. Applicant consistently applies an Expenses policy that only allows reimbursement of expenses claimed by freelance employees that are genuinely incurred and verified as wholly, exclusively and necessarily in the performance of the freelance employee's duties Yes/No
5. Applicant has during the preceding 12 months:
a made all payments (including for paid leave) to its freelance employees promptly when due and has not withheld any payment Yes/No
b where holiday pay is withheld, made full and accurate provision for the future liabilities and maintained adequate cash reserves in this respect Yes/No
6. Applicant made payment of all sums due for PAYE and National Insurance promptly when due Yes/No
7. Applicant made payments of all sums due for VAT promptly when due Yes/No
8. Applicant has filed its accounts at Companies House by the due date
a on each occasion during the last 3 financial years (please indicate N/A if Applicant has not operated for 3 consecutive financial years), or Yes/No/ N/A
b only applicable if the Applicant has not existed for 3 financial years prior to date of certificate, for the period since the inception of the Applicant (please indicate N/A if Applicant has operated for at least 3 consecutive financial years) Yes/No/ N/A
9. Applicant had no overdrawn Director's Loan Accounts at last financial year end Yes/No
10. Applicant is currently able to meet its financial commitments as they fall due Yes/No