How to Legally Implement Electronic Signatures

With the advent of digitalization, it is logical that you not only manage your correspondence, but also your contracts digitally. Just sign digitally and the contract can go on its journey - but be careful here. Because not every signature is suitable for every document.

In recent months, some court rulings have shown that a mistake in choosing your signatures can bring nasty surprises. So the food delivery service Gorillas made headlines, because several employees sued him to make their employment relationships indefinite. The fixed-term contracts of the couriers were not signed in person, but with the wrong e-signature standard. This invalidated the term of the contracts.

In this article, we will show you what you should pay attention to in order to be on the safe side in the future. In this way, you can sign your documents, contracts and agreements with the e-signature in a legally valid and correct way. You will also get to know software that will support you in implementing your legally valid electronic signatures.

These are the things you should take into account when implementing your legally valid electronic signature

The use of electronic signatures is regulated within the European Union in the regulation on electronic identification and trust services for electronic transactions in the internal market, short eIDAS. This legal basis, which came into full force in 2016, allows you to legally sign digital documents and applies to all 27 EU member states as well as Liechtenstein, Iceland, Norway and the United Kingdom.

The eIDAS is aimed, among other things, at clarifying and ensuring the legal validity of electronic signatures. It defines three types of electronic signatures: simple, advanced and qualified signature. The simple electronic signature (EES), such as a scanned signature or the swipe on a touch display, is easy to handle, but has only a low evidential value, which is why it is generally only used in contracts without a form requirement, such as on a registration form for an apartment viewing. Advanced electronic signatures (FES) are suitable when a higher level of identification is required, which gives them a higher level of evidence. These include, for example, lease agreements without price slide clause or sales contracts. The eIDAS regulation places maximum identification requirements on the qualified electronic signature (QES), which therefore also has the highest evidential power.

The use of the e-signature is regulated in Germany in the Civil Code (BGB, Art. 126a). There it is written that a qualified electronic signature can replace your handwritten signature and the required written form. If a document requires the written form and you do not fulfill it either in handwriting or with a qualified electronic signature, your contract becomes null and void. However, unlike your handwritten signature, the lettering is not decisive, but a data-based link is crucial for legal certainty. That is why a digital certificate is also deposited with a qualified electronic signature. This contains a timestamp that records the signature time, guarantees the integrity of the signed document (that it has not been changed since) and confirms the identity of the signer.

To understand the relevance of a legally valid electronic signature, you should be clear about the difference between the concept of legal validity and evidential power. A signature is legally valid if the form required by law is maintained. So if the law requires a contract to be in writing, and the electronic form is not excluded, as is the case with a parental leave application, this can only be signed legally validly with the QES. The QES is the only e-signature that is allowed to replace the handwritten signature. In the case of an open-ended employment contract, where no particular form is prescribed, the contract is legally valid with an EES or a FES. Some documents, such as a termination, a termination agreement or a work certificate, must be signed by hand.

In the event of a legal dispute concerning one of the contracts you have concluded, it is necessary to prove the identity of the signatory. In such a case, the QES is as strong a piece of evidence as a handwritten signature. Strictly speaking, the qualified electronic signature is even safer, as its authenticity is easier to prove than that of a handwritten signature.

As for the scanning of a handwritten signature, you should try to avoid it completely, as it is only legally valid to a certain extent. It can legally be considered a simple electronic signature, but it is only a copy of the original signature. Therefore, it would have little evidential value in court. You are on the safe side if you use an electronic signature with cryptography and a certificate from a trustworthy service provider.

With these softwares, you implement an electronic signature in a legally valid way

To ensure that you don't have to approach the digital signature of your documents and contracts aimlessly, there are various e-signature softwares, that will assist you in creating a legally valid electronic signature. On OMR Reviews, you can read the reviews and reports of real users and find the right software for your company. There you will find information about the following tools:

Skribble

Flixcheck

Adobe Sign

ContractHero Vertragsmanagement

DocuSign

Dropbox Sign

sproof sign

eversign

PandaDoc

Yousign

Using the example of Skribble we want to show you how easy the legally valid implementation of your electronic signatures can be in the future. Skribble is a software for creating electronic signatures that allows you to map your signature processes digitally. The tool offers the legally appropriate signature type for each type of contract. To do this, upload your PDF document to be signed on the platform and add the people who are supposed to sign the document. You can set the order of signatures and also add a personal message and an observer. It is also possible to personalize the visual signature by adding your personal handwritten signature as an image. Skribble can also be integrated into your existing business software. Digital signing with Skribble makes processes in your company more efficient and reduces costs.

The provider of legally secure e-signatures hosts your data in Switzerland and has the highest available standards, as the data center is ISO 27001 certified. The management of documents and data is in accordance with the EU General Data Protection Regulation (GDPR) and the Swiss Federal Data Protection Act (DPA). In addition to a German one, the software also has an English and French version and encrypts contracts with an individual AES-256 key, which is assigned to users using asymmetric cryptography. After a free trial period, you can choose between various Skribble packages. The 'Fair Flat' package is suitable for individuals and will cost you between 1.10 euros and 2.40 euros per signature. In the 'Business model' for companies, the price is 79 euros per month. It is also possible to have individual enterprise packages created.

To get a first impression of Skribble, you can use the offered trial period to put the e-signature solution to the test. Here, pay special attention to user-friendliness and how easy the tool is to use. The easier it is to use, the more enjoyable it is to use and the more likely it is that your colleagues will accept the tool and integrate it into their daily work.

On the (legally) safe side

If you want to observe the correct legal provisions when signing your contracts and want to be on the safe side (legally), we recommend that you take a closer look at the legal framework conditions when implementing an e-signature. In the best case, it is also worth claiming legal advice. You are well advised to pay attention when choosing an e-signature provider to ensure that all three e-signature standards are offered from a single source. This is not always the case and additional costs and efforts can quickly arise, which you do not expect at the beginning. Also pay attention to whether the e-signature solution is GDPR-compliant and whether your documents and data are well protected.

Another aspect to consider when choosing a signature provider is the integration options. Take a close look at what is being offered and how easily the tool can be integrated into your existing software, e.g. CRM software or document management systems. It is also important to check during the decision-making phase what service and support the e-signature provider provides. The transition to the e-signature is a process of change and the associated change management in the company should not be underestimated. What good is a new tool to you if nobody in the company uses it and it is not well received?