Quick facts
Legal recognition of eSignatures in the United Kingdom
eSignatures are legally recognized in the United Kingdom under the Electronic Communications Act 2000 and the eIDAS Regulation (EU No 910/2014), which was retained in UK law after Brexit in 2020. These frameworks align with international standards like UNCITRAL Model Law on Electronic Commerce, ensuring that eSignatures are valid and enforceable in most situations.
The Electronic Communications Act, introduced in 2000, provided the initial legal basis for eSignatures in the UK. In 2016, the eIDAS Regulation brought additional clarity by standardizing eSignature practices across the European Union. Even after Brexit, the UK continued to adhere to eIDAS principles to maintain compatibility with international standards, with updates ensuring the regulatory framework remains effective and localized for UK-specific needs.
This legal foundation provides businesses and individuals with the assurance that eSignatures are not only valid but also hold the same weight as traditional handwritten signatures in most scenarios.
Types of electronic signatures accepted in the United Kingdom
The United Kingdom recognizes three types of eSignatures under the UK’s eIDAS Regulation: simple electronic signatures (SES), advanced electronic signatures (AES), and qualified electronic signatures (QES).
Each type has specific features and use cases, offering varying levels of security and legal assurance.
1. Simple electronic signatures (SES)
SES is commonly used for low-risk agreements, such as accepting terms and conditions or signing NDAs.
2. Advanced electronic signatures (AES)
3. Qualified electronic signatures (QES)
Requirements for legality of eSignatures in the United Kingdom
For eSignatures to be legally binding in the United Kingdom, they must meet several key criteria established under the Electronic Communications Act 2000 and the eIDAS Regulation. These criteria ensure the authenticity, security, and enforceability of electronically signed agreements.
1. Consent of all parties
All parties involved must clearly express their intent to sign the document electronically. The act of signing (whether through clicking a button, typing a name, or using a digital signature) must signify agreement to the terms of the document.
2. Identity verification
There must be a reliable method to verify the identity of the signer. This can include:
- Email or SMS verification for simple signatures
- Authentication measures like passwords, PINs, or government-issued ID checks for advanced signatures
- Certificates issued by a Qualified Trust Service Provider (QTSP) for qualified electronic signatures
3. Document integrity (tamper-proof)
The eSignature must be linked to the document in a way that detects any alterations after signing. Advanced and qualified electronic signature solutions often use encryption to ensure tamper-evidence.
4. Record retention and audit trails
It’s essential to retain signed documents securely for future reference. A complete audit trail, detailing who signed, when, and how, provides additional legal assurance.
Most eSignature platforms automatically generate these trails, including timestamps and IP addresses.
Limitations and exceptions
While eSignatures are widely recognized and legally binding in the United Kingdom, there are certain documents and situations where they may not be accepted or additional requirements must be met. These limitations exist to ensure greater security or compliance with longstanding legal traditions.
Documents where eSignatures are not accepted
- Wills and codicils
Under the Wills Act 1837, wills and codicils (amendments to wills) require handwritten signatures in the presence of two witnesses. Although temporary measures were introduced during the COVID-19 pandemic to allow for remote witnessing, eSignatures are still not accepted for these documents.
- Deeds requiring witnessing
Certain deeds, such as property transfers or mortgage agreements, must be signed in the presence of a witness. While eSignatures can be used for some deeds, the witnessing process often requires physical presence, limiting their use.
- Powers of attorney
Lasting powers of attorney (LPAs) in England and Wales must currently be signed with wet ink signatures as the Mental Capacity Act 2005 prohibits the use of eSignatures for LPAs. The government is exploring reforms to allow digital processes, but as of now, eSignatures are not permitted.
- Court orders and official government documents
Some court orders, affidavits, and official government forms still require handwritten signatures or specific certification processes.
- Notices of change to statutory rights or certain financial documents
Certain financial documents, including specific notices required by law regarding statutory rights or changes to financial arrangements, may require wet ink signatures or additional certification that eSignatures cannot provide.
Situations with additional requirements
- Cross-border transactions: For agreements involving international parties, the acceptance of eSignatures may depend on the laws of the other jurisdiction. It is essential to confirm whether eSignatures are recognized in those locations.
- Qualified electronic signatures (QES): For the highest level of legal assurance, certain high-value or sensitive agreements may require a QES, which involves a digital certificate from a UK-approved Qualified Trust Service Provider (QTSP).
Practical Considerations
Although these exceptions are relatively few, they highlight the importance of understanding the specific requirements for each type of document. In cases where eSignatures are not accepted, traditional handwritten signatures and physical processes remain the standard.
Businesses and individuals should consult legal professionals when handling complex agreements to ensure compliance with all applicable laws.
Industries and use cases of eSignatures in the United Kingdom
eSignatures have become an essential tool for businesses and individuals across various industries in the United Kingdom. By offering speed, convenience, and security, eSignatures enable seamless transactions and efficient workflows.
The following are some of the industries and use cases where eSignatures are used extensively.
Regulatory authority and compliance tips
In the United Kingdom, the use and oversight of eSignatures fall under the purview of the Information Commissioner’s Office (ICO). The UK’s adherence to the eIDAS Regulation (retained post-Brexit) means that Qualified Trust Service Providers (QTSPs) must meet standards set by UK governing bodies to issue digital certificates for qualified electronic signatures (QES).
To ensure the legality and enforceability of eSignatures, keep these key compliance tips in mind:
1. Choose the right type of eSignature
For low-risk transactions, a simple electronic signature (SES) may suffice. For higher security needs, consider advanced electronic signatures (AES) or qualified electronic signatures (QES), which provide additional layers of identity verification and document integrity.
2. Verify the identity of the signer
Use reliable methods such as email verification, multi-factor authentication, or identity checks to ensure the signer is who they claim to be. For QES, work with a certified Qualified Trust Service Provider (QTSP).
3. Ensure document integrity
Use eSignature platforms that secure the document against tampering after it has been signed. Tamper-evident technology ensures any modifications are detectable.
4. Maintain audit trails
Record critical details such as the signer’s identity, timestamp, IP address, and authentication method. These details provide evidence of the signing process, strengthening the legal validity of the signature.
5. Retain signed documents securely
Store electronic records in a secure system that complies with the Data Protection Act 2018 and GDPR. Ensure documents are accessible for the required retention period.
6. Stay informed about exceptions
Understand the documents where eSignatures are not accepted, such as wills and certain property deeds. For these cases, use traditional handwritten signatures or meet the witnessing requirements.
7. Partner with trusted eSignature providers
Choose a reputable eSignature platform that complies with UK and international standards, such as Signeasy.
