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City Trader loses claim for 'Higher Bonus'

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The High Court recently struck out a claim for breach of contract from a money market derivatives trader in relation to his employer’s exercise of its discretion to award him an annual bonus. The employee argued that, in awarding him a significantly smaller bonus than two of his colleagues, his employer breached an express contractual term to treat him consistently with his “peers” and the implied term to act in good faith.  The High Court held that the employer had sound reasons for awarding the two colleagues a guaranteed bonus on a formula basis as opposed to a discretionary bonus to the claimant and breached neither its express nor implied obligations.