Can Employment contracts be signed electronically in the UK?

As soon as someone accepts an offer they have a contract with their employer in U.K. law. In the UK, there are many different types of employment contracts, including full and part-time permanent contracts, fixed-term contracts, and freelancer contracts. There is a statutory requirement to provide a written statement of particular elements of an employment contract. 

An employment contract is an agreement that sets out an employee's rights, responsibilities and duties. Many HR practitioners now need to get contracts negotiated and signed remotely, but can employment contracts be signed with an electronic signature?

Are electronic signatures legally binding for employment contracts in the UK?

An employment contract need not be in writing, and may be expressed or implied; so there is no strict requirement for a contract to be signed. However, it is clearly in the employer’s interests to obtain a signed agreement, otherwise it may be difficult to establish what the terms are and there may be disputes. The Law Commission has confirmed that electronic signatures are valid for executing documents including employment contracts. 

Electronic signatures are legally recognised in the U.K, and are provided for in the U.K. version of Regulation (EU) No 910/2014 of the European Parliament and of the Council of 23 July 2014 on electronic identification and trust services for electronic transactions in the internal market (eIDAS) as amended by the Electronic Identification and Trust Services for Electronic Transactions (Amendment etc.) (EU Exit) Regulations 2019 (SI 2019/89) (the “UK eIDAS Regulation”). 

Find out more in our UK legality page.

What is the difference between a simple employment contract and a deed? 

Sometimes it will be necessary for the employment contract to be signed as a deed, rather than as a simple contract. The most common reason for signing the employment contract as a deed is because it contains a power of attorney (to be effective, a power of attorney must be signed as a deed).

Power of attorney clauses will be necessary in certain circumstances such as if there are intellectual property rights that the company wants to protect, or, for example, if it is necessary to procure the transfer of shares. If you are signing a contract as a deed, each individual must sign the document in the presence of a witness. The witness attests to the signing of the document. 

How can electronic signatures be used for employment contracts that require a witness? 

Electronic witnessing allows a practical solution to signing a document when a witness is required. 

Under English law, a deed can be validly signed and witnessed using an electronic signature platform, such as Docusign eSignature, in situations where the law allows electronic signing.

Electronic witnessing allows you to sign electronically and have a witness to your signature at the time of signing. Docusign eWitness is a feature of Docusign eSignature that allows users to select an individual to act as a witness for the signing of deeds and other documents like loan agreements or shareholder documents for directors in a company.

Using electronic signatures with witnesses

It is possible to sign a document with an electronic signature using an advanced electronic signature platform like Docusign. With Docusign eWitness, you create and execute an envelope as you usually would for an electronic signature but you can also add a witness group. You can add two witnesses per signer for each agreement. 

When setting up the agreement, you can select the witness or request the signer select the witness. 

When the signatures of both the signers and witnesses are complete - the history of the signing and witnessing is stored in the Certificate of Completion. 

Two factor authentication can be used to ensure enhanced security and that the correct signers and witnesses are involved. Docusign eWitness provides a seamless experience for employers and employees when creating an employment contract that needs witnessing.  

What are the benefits of using electronic signatures for deeds and employment contracts? 

There are many benefits to using electronic signatures and deeds for employment contracts. Some of the advantages include:

• Enabling HR teams to onboard new employees remotely

• Documents can be signed and witnessed faster. Reducing the time taken to onboard new employees and a reduction in admin for HR teams. 

• The certificate of completion captures key facts about both signers and witnesses including timestamps and IP addresses which could help provide evidence in the event of a dispute.

• Electronic signature platforms use advanced security protocols to ensure documents are secure and signatories are who they say they are. 

Discover more on electronic witnessing.

How can HR departments integrate electronic signatures into their workflow? 

HR departments wishing to go paperless can very quickly and easily start using electronic signatures. Sign up for a free trial of Docusign eSignature. You can also automate other HR processes with Docusign for HR. If you wish to add Docusign eWitness, chat to our sales team who can help you add on this advanced solution.