In a bold move to preemptively tackle disputes within the recruitment sector, Barry Cullen, a solicitor and former recruiter, has introduced an online platform designed to safeguard recruitment consultancies from financial disagreements.
Cullen, who is at the helm of recLAW, a unique law firm that operates exclusively for recruitment consultancies, recently launched recPROTECT. This service seeks to fortify businesses against disputes, which often stem from unpaid fees and invoice factoring costs. An estimated £860 million is written off by recruitment agents annually due to unpaid fees, highlighting the significant financial implications involved.
The launch of recPROTECT is accompanied by a drive to secure £600,000 in seed funding, aimed at enhancing sales and marketing efforts. The platform currently serves nine clients and aspires to widen its client base significantly, targeting 20-25 clients by year-end and up to 100 by the next.
Cullen’s experience in both recruitment and legal fields shaped his understanding of the industry’s pitfalls, leading him to establish a law firm solely dedicated to this niche. With recruitment consultancies being his primary clientele, Cullen identifies recurring issues that often lead to disputes, particularly those related to legal structures and internal processes.
The platform not only provides traditional legal services through recLAW but also employs advanced technologies to counteract ‘backdoor’ hires. This feature scans data to detect instances where introduced candidates are hired without due payment to the recruiter, a practice that costs the industry approximately 4-7% of their net fee income.
Subscription-based, the platform’s pricing model is tailored to the size of the business, ensuring flexibility and accessibility. Cullen envisions recPROTECT expanding beyond UK borders, with potential collaborations in jurisdictions like the USA and Germany.
The venture reflects Cullen’s strategic shift from working under fee-share law firms to establishing his own practice in Brighton in 2021. Along with his partner, Tallulah Cullen, who oversees operations, and a small team, the firm’s growth is buoyed by its emphasis on niche services and technological integration.
As recruitment businesses face mounting financial challenges, platforms like recPROTECT offer a proactive solution to mitigate disputes and secure financial stability.
