Electronic signatures are legally valid
Legally valid. The Law Commission keeps the laws of England and Wales under review and recommends reform when needed. Following a consultation in 2018, it’s now confirmed (see Follow up ) that the combination of legislation and case law means electronic signatures (e-signatures) are valid under English law and can be used in place of a handwritten signature as long as the usual rules on signatures are met. It’s also recommended the government codify the law on e-signatures to improve its accessibility (see Follow up ).
Employment contracts. There are no statutory provisions requiring employment contracts to be signed by employees, but this is best practice as a signature provides clear evidence of acceptance of the terms. The Law Commission says that an e-signature is capable in law of being used to execute an employment contract (including a deed), provided that: (1) the signatory intends to authenticate the contract; and (2) any formalities relating to execution of the contract, i.e. the signature being witnessed in the case of a deed, are satisfied.
Pro advice 1. There’s no particular form of e-signature prescribed. It could take various forms, including someone signing by using a stylus pen on a touch screen device, typing their name into the contract, applying a unique digital code to it as personal identification or clicking an “I accept” tick box.
Pro advice 2. An employment contract need only be executed as a deed if it includes a power of attorney relating to the assignment of any intellectual property rights to the business.
E-signature key benefit. The signing process can be done remotely online. It gives employees a convenient option to sign their contracts on their smartphones or tablets, meaning you’re more likely to get them signed quicker than when they take a hard copy home to read. You’ll also get instant notification when it’s been signed.
Law Commission press release
Electronic execution of documents report
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