OD FLASH | Non-contractual nature of an internal customer reassignment mechanism

The Court of Cassation specifies that an internal customer redistribution mechanism that is not contractual and is based on random and discretionary criteria, may be unilaterally modified by the employer.

Court of Cassation, Civil Division, Social Chamber, November 13, 2025, 24-17.197 24-17.198, Unpublished – Légifrance

Two employees of a financial institution requested back pay after the suspension of an internal system that reassigned automatically clients who had become “orphaned” in the client portfolios of other financial advisors. They argued that this mechanism, put in place for many years, was a consistent practice of their employment relationship, and as such, had become part of their employment contract and could not therefore be changed without their express consent.

The Paris Court of Appeal dismissed their claim, noting that neither the employment contracts nor the internal documents established a right to the automatic reassignment of orphaned clients. This redistribution, linked to the random departures of financial advisors, depended on the employer’s discretionary decisions on the organization of portfolios.

The Court of Cassation upheld the reasoning of the lower court judges. It emphasized that no contractual provision guaranteed automatic reassignment, and that the operation of the system depended on external factors, in particular the departure of other financial advisor and the choices made regarding the reallocation of their clients. As this reassignment was random and discretionary in nature, it did not constitute a contractual element of remuneration or a customary practice. The suspension of this mechanism did not therefore constitute a modification of the employment contract of the employees, who were thus denied their claims for back pay and compensation.