Morrisons is due to argue against a decision to compensate employees whose personal details were exposed in a data leak at a hearing in the Court of Appeal today.

The supermarket chain is contesting a High Court ruling last year that found Morrisons staff were entitled to thousands of pounds in compensation after a disgruntled employee posted payroll data - including names, addresses, bank account details and salaries of more than 100,000 employees - online in 2014.

The case is the first class action to spring from a company data leak in the UK.

Andrew Skelton, a former senior internal auditor at the Morrisons’ Bradford headquarters was jailed for eight years in 2015 after he was found guilty of fraud and disclosing personal data.

A court heard that he had harboured a grudge against the company after he had been accused of dealing ‘legal highs’ at work.

Morrisons spent more than £2 million to rectify the breach, but last year the High Court found the supermarket was vicariously liable for the breach.

More than 5,000 current employees that were exposed to the risk of identity theft and potential financial loss as a result of Skelton’s actions were entitled to compensation, the court ruled.

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