Two luxury hotels run by the chair of tourist body VisitScotland, Stephen Leckie, have been named and shamed for failing to pay staff the minimum wage.
The Crieff Hydro Hotel tops the list of Scottish businesses outed in a 500-strong UK roll call of shame published by the Department of Business and Trade (DBT) on Friday. The Perthshire hotel and a sister business in the Borders were among those 500 businesses fined by the government a total of £10.2 million for failure to pay the correct sums to their staff.
The Scottish business says in their defence that these are 11 year-old claims which took four years for DBT to iron out, but would not confirm the amount of the fine levied against them.
Mr Leckie is CEO of the Crieff Hydro Family of Hotels which also includes another hotel of which he is a director, the Peebles Hydro in respect of which there was an underpayment of £4,328.91 to 28 workers. He is also Chair of Scotland’s national tourism and event organisation VisitScotland, sits on the board of VisitBritain and Perth Chamber of Commerce, and is Lord-Lieutenant of Perth and Kinross.
The DBT report reveals that Crieff Hydro – described as Scotland’s leading spa hotel and resort – underpaid 131 staff by almost £34,000 – an average of £260 per worker. But the government department also confirmed to The Edinburgh Reporter that they investigated offences as far back as 2013 and all investigations into the employers on the list concluded between 2018 and 2023.
A spokesperson for Crieff Hydro Hotel said: “As a business we have always championed the minimum wage and have market-leading working conditions. We have certainly never paid below the appropriate hourly rate.
“We are disappointed that HMRC continues to indiscriminately ‘name and shame’ employers in this way, specifically where a breach is inadvertent and/or due to technicalities.
“Many employers, we included, are dismayed to learn of any instances of their employees’ pay unintentionally falling below minimum wage, take immediate steps to rectify this and seek to quickly put in place measures to ensure it never happens again. We aim to work in collaboration with HMRC to do this and believe this ‘naming and shaming’ approach is not constructive, particularly given these lists are published many years after inspections have concluded.
“In this instance, which dates back to 2014, there were technicalities connected to pay periods and contractually agreed deductions that HMRC does not take into account. When we were first made aware of these issues in 2017 we made it publicly known that we would make an allowance in our accounts to ensure we could quickly pay back anything owed to our colleagues while we resolved the matter with HMRC. We took immediate action to rectify any technical shortfalls as soon as these were confirmed.
“HMRC claims that its guidance on these issues is clear. However, the fact that it took over four years to present its findings in our case suggests otherwise. It’s well known that many other famous names in hospitality and other sectors have been affected and singled out in this same disappointing way.
“We fully support and will continue to pay at least the hourly minimum wage rate as we always have – in many cases much more – to our valued team, just as we always have.”
Asked about the matter involving their Chair, a VisitScotland spokesperson said : “The position of VisitScotland chair is a non-executive role which is appointed by The Scottish Government. Mr Leckie was appointed to this role in 2024 and has been a long-term advocate for Scotland’s wider tourism industry.
“While we cannot comment on individual business operations, in his role as VisitScotland Chair, Mr Leckie continues to play an integral part in providing general oversight of our practices to ensure proper management of the organisation.”
A Scottish Government spokesperson said: “As Chair of VisitScotland, Mr Leckie continues to oversee the effective operation of the organisation as it grows the value of Scotland’s vital visitor economy.”
The UK Government said that around 42,000 workers have been repaid by their employers and the government remains adamant that the enforcement does not only protect workers but also prevents businesses who “do right by their staff” from being undercut.
Scotland Office Minister Kirsty McNeill said: “Every Scottish worker deserves the pay they are entitled to. Our government is delivering real change for working people – boosting the minimum wage for 200,000 of Scotland’s lowest-paid workers and taking action against employers who break the rules.
“We are bringing in the biggest upgrade to workers rights in a generation and we will not tolerate employers who short-change their staff.”
Business Secretary Peter Kyle said: “Every worker deserves a fair day’s pay for a fair day’s work, and this government will not tolerate rogue employers who short-change their staff.
“I know that no employer wants to end up on one of these lists. But our Plan to Make Work Pay cracks down on those not playing by the rules.
“This ensures a level playing field where all businesses pay what they owe whilst workers receive the boost to their living standards they deserve.”
Niall Mackenzie, Acas Chief Executive, said: “Not only is it important for employers to pay the correct minimum wage rates, it is also the law.
“Failing to do so can result in grievances and potentially legal action, including costly employment tribunals, as well as being named and shamed.
“Acas has advice on how employers can ensure they calculate the correct rate to pay their workers and what employees should do if they think they are not being paid the correct amount.”
