Arrangements have been put in place to collect the money through a variety of measures and sanctions, including voluntary arrangements, earnings arrestment and direct deduction from benefit.

A council spokesman said automatic monitoring of the payroll and council tax systems identified those in arrears. Employees were then contacted by the council’s revenues team and asked to agree to a voluntary arrangement.

If an employee did not agree, the council took action to ensure the money is collected through earnings arrestment.

“Council employees have always been subject to the same procedures as any other council tax payer who is in arrears and in employment,” the spokesman said.

He said a new system made it possible to identify arrears at an earlier stage and to recover the debt

more quickly, adding, “The council has already improved its council tax collection rate and is determined to do everything it can to recover outstanding debt.”

Figures issued by the Scottish Executive last month showed that Dundee’s council tax collection rate had improved for the fourth year in a row, but was still among the lowest in Scotland.

The figures come the day after female employees of Tayside Contracts were urged to fight the council in court over deductions being made to equal pay compensation to cover tax arrears.

The council has told the workers they have until today to sign a mandate giving the local authority permission to claw back up to 75% of the payment they are due to receive. Many have signed up, but others continue to hold out for a better settlement.