Qualified Electronic Signature: This is How the Handwritten Signature is Replaced

1. What is a qualified electronic signature (QES)?
2. Qualified Electronic Signature: Advantages in Everyday Work
3. What requirements/conditions must a qualified electronic signature meet for it to be legally secure?
4. In which use cases of the qualified electronic signature exist in Germany?
5. What should I look for when choosing a signature software?
6. Which providers for qualified electronic signatures are there?
7. ⁠Qualified electronic signature: Conclusion and outlook

In today's digital world, paper is increasingly being banned from businesses. This is particularly true for contract management. Because today we no longer sign documents on site with pen and paper, but location-independent and completely digital. A term that comes up again and again in this context: the qualified electronic signature (short: QES). But what is a qualified electronic signature anyway? What requirements and use cases are there? And what should I pay attention to when choosing a provider? In this article you will find the necessary knowledge so that you too can participate in digital progress and get started in everyday work.

Source: d.velop

What is a qualified electronic signature (QES)?

The qualified electronic signature (QES) is a special form of the electronic signature, which is based on the European eIDAS regulation. The eIDAS regulation ("electronic Identification, Authentication and trust Services") creates uniform conditions for the use of electronic signatures in the European Economic Area.

Source: d.velop

The uniform set of rules provides security for companies and reduces administrative hurdles. The eIDAS regulation distinguishes between three different signature standards:

• the simple electronic signature (EES),

• the advanced electronic signature (FES) and

• the qualified electronic signature (QES).

Source: d.velop

The qualified electronic signature is the highest level of the three e-signature standards and due to its high requirements for the identity of the signatory the safest form of digital signing.

Qualified Electronic Signature: Advantages in Everyday Work

But why should companies bother with the qualified electronic signature, the associated set of rules and a possible software solution like ContractHero Vertragsmanagement at all? Why should employees* rely on the digital process and say goodbye to the familiar signature on paper? These are six advantages of the qualified electronic signature you should definitely know about:

• Lower process costs: Save the costs for paper, printing and shipping and become independent of new cost increases e.g. due to postage increases.

• Save time: An optimized signature process reduces the turnaround times from several days to a few minutes.

• Sign location-independent: Avoid unnecessary physical travels for signing contracts - sign whenever and wherever you want!

• Eliminate media breaks: No more way to the printer or scanner - experience a continuously digital process without media breaks. From the creation of the contract over the signature to the archiving in only one system.

• Conserve natural resources: Make a real contribution to a more sustainable working world, e.g. by reducing CO₂ (avoidance of travel, deforestation).

Taking all aspects together, the focus is on one core value: flexibility. Signing documents, no matter when and where - a puzzle piece, which belongs to the digital office in times of remote work and new work. Once recognized and experienced in everyday life, nobody wants to miss their benefits. The qualified electronic signature therefore represents a win-win situation for all persons involved.

Source: d.velop

What requirements/conditions must a qualified electronic signature meet for it to be legally secure?

As we have already learned, the qualified electronic signature is the safest form of digital signing due to its high requirements for the identity of the signatory. But what exactly are these requirements?

In order for the qualified electronic signature to be used, a certified trust service provider must verify the identity of the respective person. With regard to the qualified electronic signature, signature software works together with these trust service providers.

Background: trust service providers are companies or organizations that offer digital services to ensure the confidentiality, integrity and authenticity of electronic transactions and documents. In Germany, for example, Deutsche Telekom, Deutsche Post, D-Trust (Bundesdruckerei), Bundesnotarkammer and Bundesnetzagentur are among the trust service providers. In Switzerland, on the other hand, one often encounters Swisscom Trust Services.

At the beginning, the respective person sets up an account with the trust service provider. Afterwards, the person goes through an identity verification process (e.g. eID, video-ident or PoS-ident) once. With the successful verification the basis was created to trigger legally safe signature processes with the QES in the future. These 3 steps are finally performed when using the qualified electronic signature:

1. Start the signature process and select the QES as the signature level

2. Confirm identity: Before the signature can be applied to the document, the signatory must log in to the user account of the respective trust service provider (1st factor) and request a TAN number to confirm it in the signature software (2nd factor).

3. A signature certificate is generated and the signature process completed.

Source: d.velop

When applying the qualified electronic signature, a signature certificate is generated. The following information can be read from the signature certificate, e.g. via a PDF reader:

• Who signed the document?

• When was the document signed?

• With what signature level was the document signed? (advanced or qualified)

• Were there any subsequent changes to the document?

• Is the digital signature LTV-capable? (Long-Term-Validation)

Thanks to the signature certificate, the qualified electronic signature can even be regarded as safer than the traditional signature with pen and paper in a business context. Only the certificate can provide clear information. With the analogue way, on the other hand, there are residual risks, such as forged signatures.

Source: d.velop

In which use cases of the qualified electronic signature exist in Germany?

To understand the use cases of the qualified electronic signature, it is worthwhile to take a look at the legal form requirements of certain contracts. Contracts where the legally prescribed form is not complied with are null and void in the worst case and can be contested subsequently (§ 125 BGB). To maintain the binding function of contracts, these form requirements should therefore definitely be complied with. But what does that mean for the qualified electronic signature?

The answer lies in German law: The written form can be replaced by the qualified electronic signature, unless otherwise prescribed by law (§§ 126, 126a BGB).

Source: d.velop

In principle, the qualified electronic signature should be used when a document has a legal or contractually agreed requirement for written form or when there is a high liability risk for the company. A trusted lawyer should therefore always be consulted for your own assessment. However, the following illustration can be used for initial orientation:

Source: d.velop

In which areas are qualified electronic signatures particularly often used in companies? To answer these questions, I asked independent lawyers from Noerr and compiled recommendations for various departments/legal areas on possible use cases:

Please note: This table is just a brief overview and does not replace legal advice. We generally recommend consulting a trusted lawyer. The author is happy to provide further information material on request.

What should I look for when choosing a signature software?

To use a qualified electronic signature in the company, the use of an e-signature software is necessary. As with any digitization project, quality features should be set up and considered before introducing a provider. The following criteria should be used in the provider selection:

• eIDAS compliance: The eIDAS regulation forms the legal framework for the use of electronic signatures in the EU. In terms of the qualified electronic signature, the software provider should only work with certified trust service providers.

• DSGVO compliance: Your signature is a very sensitive asset in the digital working world. Therefore, it stands to reason that an e-signature software should store documents and signatures in compliance with DSGVO and can prove this, for example, with a certificate. It is worth taking a look at the data protection regulations of the respective providers.

• Unlimited user number: The e-signature unleashes its full digitization power when as many employees* as possible can use it actively. The billing models of the software providers should therefore be based on signature contingents and/or signature flat rates - but not be tied to a specific number of users. An unlimited number of users promotes the digitization effort and simplifies the realization in the company.

• All signature levels available in standard: So that you can sign all your contract and document types legally secure and digital, the software should offer all signature levels (simple, advanced and qualified) in standard. This way you can react flexibly. Some providers charge extra for the "activation" of the qualified electronic signature - a careful look is worthwhile.

• Personal consulting with a fixed contact person: Basically, the e-signature software should be usable so intuitively that after a test phase no questions remain open. Nevertheless, there are sometimes special situations where the advice of a signature expert can be helpful. It is therefore advantageous to get a fixed contact person at the software provider who supports you with your topics and already knows your situation.

• Intuitive usage: With every signature made, the company exploits its own digitization potential further. Therefore, it is important that as many employees* as possible not only get access to the software (number of users), but can also use it easily and uncomplicatedly. Always ask yourself the questions: Which features do I really need for my processes? And which features do I not need? Especially these functions often lead only to an overloading of your own staff and do not create added value. Furthermore, structured onboarding materials facilitate the entry into the software.

Which providers for qualified electronic signatures are there?

Thanks to the uniform legal basis in the European Economic Area through the eIDAS regulation and the increasingly common use of the qualified electronic signature, various providers of e-signatures have been established in the (German) market. The providers differ considerably in terms of functionality, data protection, personal advice and the other quality features mentioned above.

Therefore, we recommend first gathering information through the communication channels of the various providers (website, newsletter, demo conversation, webinar, ...). Afterwards, 3-5 suitable providers should be shortlisted, and test phases planned. As a rule, the providers offer free trial versions for this purpose. Finally, with the experiences collected at the different providers, you can form an opinion and make a final decision.

About the Software providers in the field of e-signaturesand the corresponding user reviews, you can find an overview on OMR Reviews.
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⁠Following are the 5 most popular e-signature software, based on verified reviews and experiences by OMR-Reviews users:
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sproof sign

Adobe Sign

Flixcheck

DocuSign

Skribble

⁠Qualified electronic signature: Conclusion and outlook

The qualified electronic signature is the digital equivalent to the traditional signature with pen and paper. For companies that think rationally and value process quality and cost savings, there is no longer any way around the qualified electronic signature. The e-signature will establish itself as the new standard in contract management of companies in all industries and will enrich and simplify the daily work of many people. Compared to other projects in the course of the digital transformation, the e-signature is a small digitization building block that can be implemented in the software architecture of companies in a short time and quickly.

My final appeal: Be open to this technological progress, collect your own experiences with test phases, and make up your own mind about the numerous advantages of the qualified electronic signature.#HappySigning