Local bakery Fisher and Donaldson has been reprimanded for failing to pay minimum wage to several employees.
The business was highlighted along with 198 other firms across the UK as part of the government’s new “name and shame” scheme.
The Fife company was found to have owed £574.32 to six workers in a list released Thursday 11 August.
In a statement released on Facebook, company director Eric Milne said, “We are a family run bakery that has been in operation for five generations, since 1919. We pride ourselves on the quality of our products and the people who work with us to make and sell them on a daily basis.
“Last year a human error regretfully led to a small number of 16-17 year old employees being underpaid. Unfortunately we were unaware that these employees, despite being below the age bracket, were eligible for the 17 year old bracket of minimum wage, a mistake which was rectified as soon as we were made aware of it by HMRC.
“This is one of many complex rules we follow and one which regretfully we did not know about.
Regretfully on this occasion we oversaw a rule regarding teenage employees which meant that a small number of our staff were underpaid.
“This is something we worked to fix as soon as we became aware of it, and we have since put new systems in place to ensure that any employee that is due to change pay bracket is flagged up in advance on our system so that this does not happen again.
“There were no other areas or incidents which were of concern to HMRC. We are a small family business, occasionally there are areas in which we can improve our knowledge, and on this occasion there was a failing in our HR system which meant we did not fully grasp one of the many HMRC rules regarding pay.
“We regret that this was the case and have put in a number of measures to improve our systems.
“We thank you for your understanding, and hope you can see that this was an honest mistake.”