Banks that attempt to renege on fixed bonuses face a higher chance of litigation after a decision this week to allow a broker to pursue his bonus claim via a UK employment tribunal, which is cheaper and less risky than the traditional High Court route.

The UK Court of Appeal ruled on Wednesday that a broker that had his £1m-plus fixed bonus reduced by £92,000 (€103,995) could bring a claim for unlawful deduction of wages under the Employment Rights Act.