Mandatory Meaning: What is mandatory?

“Obligatory” comes from the Latin. It means something is obligatory or compulsory. We often use this term in everyday life, in education and in law.

We encounter mandatory requirements every day. For example, we have to wear a seatbelt in the car. School uniforms and certain courses at university are also compulsory.

In contrast, there are voluntary activities. These are not compulsory.

In Norway, military service is compulsory for men and women aged 19 and over. To become an air traffic controller, you need a high school diploma. Nudity is also compulsory on some nudist beaches.

Compulsory Meaning in a legal context

“Obligatory” means that something must be fulfilled. These obligations often come from contracts or laws. They are important for our coexistence and regulate many aspects of our everyday lives.

Contractual and legal obligations

Contractual obligations arise from agreements between parties. For example, in a rental agreement, the tenant must pay the rent. The landlord must keep the apartment in the condition described in the contract.

Legal obligations apply to everyone, regardless of agreements. Compulsory schooling ensures that children are thoroughly educated. Tax liability is also defined by law – everyone must pay taxes.

• Occupational health and safety laws oblige employers to ensure the safety of their employees
• Parents are legally obliged to support their children
• Limitation periods limit the time in which claims can be asserted

It is important to know whether something comes from a contract or a law. Contractual obligations can sometimes be negotiated. Legal obligations, on the other hand, are often non-negotiable. Both types of obligations help us to live in a just society.

Consequences of non-compliance with mandatory regulations

There can be serious consequences if companies or individuals fail to comply with regulations. Almost 50% of companies have to provide evidence of their cyber security when requested. This shows how important it is to follow the rules.

Breaches of the rules can be very expensive. The cost of data breaches rose from 4.24 million US dollars in 2021 to 4.35 million US dollars in 2022. Banks paid 11.39 billion US dollars in fines for non-compliance last year.

Civil and criminal law consequences

Under civil law, there is a risk of high fines and claims for damages. Companies can be fined up to 10% of their annual turnover. Under criminal law, those responsible may even face prison sentences. 37% of companies have taken legal action for compliance violations.

Reputational damage is also a problem. 60% of consumers lose trust in companies that violate data protection rules. This can lead to loss of sales and customer acquisition problems. Training and internal controls help to mitigate risks and comply with regulations.