ELECTRONIC SIGNATURES VALIDATED

28 August 2018

The Law Commission have now officially confirmed the validity of electronic signatures when signing formal legal documents i.e. employment contracts.

The reason for the confirmation comes after confusion surrounding the legitimacy of electronic signatures, which resulted in many organisations being discouraged from using the electronic format.

Utilising electronic signatures allows organisations to process contracts in a quick and efficient manner.

Law Commissioner, Stephen Lewis confirmed this, stating:

“Contract law in the UK is flexible, but some businesses are still unsure if electronic signatures would satisfy legal requirements. We Can confirm that they do, potentially paving the way for much quicker transactions for businesses and consumers.”

The EU-wide eIDAS regulation, which sets out the electronic identification standards throughout Europe also confirmed the validity of electronic signatures and their use as substantial evident in legal proceedings.

The confusion appears to come from the Electronic Communications Act 2000, although the act complies with the eIDAS regulation regarding the utilisation of electronic signatures in the legal process, there is no stated indication that electronic signatures are valid.

In a Law commission consultation paper, there is discussion regarding the need for clearer legislation to avoid any doubt surrounding electronic validation. Suggesting that when a signature needs to be witnessed  a form of video should be used to connect the witnessing party, ensuring that it is safe and secure enough to validate the signature electronically.  

There have also been recommendations regarding the need for a government backed-group to regulate the use of electronic signatures, which will help identify problems and create effective solutions.