The essence of mandatory law…

The essence of mandatory law is generally that one cannot simply derogate from such provisions. Nonetheless, the Dutch Civil Code states in article 7:902 that one may derogate from mandatory law by means of a settlement agreement, when this agreement is intended to end an existing uncertainty or dispute and provided that it does not conflict with common decency and public order. This has been confirmed by the Dutch Supreme Court on January 6, in a case in which the Social Taxi Fund (‘Sociaal Fonds Taxi’) confronted the taxi company Blue Taxi with its refusal to pay out the waiting time of its drivers. Blue Taxi and the relevant taxi drivers had, however, laid this principle down in a settlement agreement. Still, Blue Taxi drew the short straw, as these arrangements could not be invoked against SFT.


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