German retailer Lidl has confirmed that it has dismissed the head of its German business, Frank-Michael Mros, after fresh allegations that the company was spying on its employees came to light. 

"Frank-Michael Mros has been released of his duties with immediate effect," a spokesperson for the group confirmed.

Mros will be replaced by Juergen Kisseberth.

A report surfaced yesterday (6 April) in German magazine Der Spiegel that Lidl had compiled files on employees' including private data on health issues.

According to the report, which was based on documents that has been thrown away in a skip, files contained detailed, handwritten notes on the health of 500 employees - from May 2008 to the start of 2009.

Lidl has admitted the records are genuine, but added that it was in the process of disposing of the files after a review of the data it keeps on employees.

The claim comes barely a year after Lidl was fined EUR1.5m (US$2m) over a scandal when the company was found guilty of hiring private detectives and using hidden cameras to monitor staff.