What is an electronic signature?
In short
An electronic signature is a signature in digital form by which someone indicates that they agree to a document. The European eIDAS Regulation has three levels, simple, advanced and qualified, which differ in how certainly it is established who signed and whether the document was changed afterwards.
The three levels
- Simple electronic signature: any digital way of giving consent, such as a scribble on a screen, a scanned signature or a tick box with your name. Simple, but its evidential value depends on what you record around it.
- Advanced electronic signature: is uniquely linked to the signatory, identifies them and shows whether the document was changed after signing. Digital signing software usually does this with a text message code or an ID check and a sealed document with a record of the signing.
- Qualified electronic signature: an advanced signature created with a qualified certificate and a secure device from a recognised trust service. Under the eIDAS Regulation it has the same legal effect as a handwritten signature, throughout the EU.
Is an electronic signature legally valid?
Yes. Under eIDAS, a court may not reject an electronic signature solely because it is electronic. The Dutch Civil Code states that an electronic signature has the same effect as a handwritten one if the method is reliable enough for its purpose. In a dispute you do need to be able to show who signed: the higher the level, the easier that is. For some legal acts the law prescribes a special form, such as a notarial deed.
Which level do you need?
For quotes, order confirmations, employment contracts and most other agreements, an advanced signature is more than enough. A qualified signature is needed when a law or a party requires it, for example in some tenders or documents for public authorities. Record which level you use for which documents, and keep signed documents with their record in a DMS or archive.
Which software helps with this?
With digital signing software you send a document round, the parties sign online and you receive a signed copy with a record of who signed when. Check which level the software provides and where the documents are stored.