Posted 20th May 2024
The use of electronic signatures has grown significantly growth in recent years. With more and more organizations worldwide recognizing their importance as a key element of their digital transformation. Their convenience and security as well as their ability to create new opportunities for businesses to extend their network and establish working relationships in other countries, are just a few reasons why this technology has become an integral part of modern business practices. Of course the use of eSignatures is dependent on the specific legislation in each country, which we will be exploring in this guide.
Businesses that frequently manage important documents aim to ensure that both their internal teams and clients can securely complete transactions and add legally binding signatures. While this is often simpler when dealing with local organizations, expanding the business internationally can introduce challenges. By understanding eSignature laws and their application to documents in various countries, businesses can ensure compliance with local legislation, save time, and avoid complications when conducting business abroad.
In most countries, e-signature laws are in place to protect both businesses and users. For instance, in the UK and the US, these laws ensure that documents signed digitally hold the same legal validity as those signed by hand. However, not all countries adopt the same stance on the legality of electronic signatures. Due to these differences, it’s crucial to understand the specific eSignature laws in each country. Which we will discuss in detail below.
If a document is important enough to require a signature, it should be suitably protected by adhering to the relevant legal standards. This is particularly important if one or more parties involved in the transaction are from different countries to the organization sending it. Let’s take a look at the laws in place for e-signatures around the world.
E-Signature laws
Overview
The Digital Signature Law regulates the use and legal implications of digital signatures in Argentina, with specific requirements in place that the signature needs to adhere to. This legislation is a federal law, but the provinces were invited to adopt it locally. As of 2017, fifteen provinces have implemented the Digital Signature law. In addition, the Civil and Commercial Code details provisions that manage the validity and effect of electronically signed documents.
Types of electronic signature permitted
Argentina takes a simple stance to electronic signatures. With one unified law stating that eSignatures are legally binding if both parties agree. The Digital Signature Law has two definitions, one for electronic signatures and one for digital signatures. The electronic signature definition is very broad, encompassing any electronic-means signature that doesn’t meet the stricter legal requirements for the digital signature. The digital signature involves more in-depth identity verification and authentication.
E-signature laws
Overview
Electronic signatures in Australia are legally recognized and provided by the Electronic Transactions Act, and its implementing regulations, the Electronic Transactions Regulations 2020, at the federal level and by each state/territory. The Electronic Transactions Regulations also sets out which transactions are exempt from the Act and therefore require a traditional signature.
Similar to the US legislation, Australian e-signature laws are fairly basic and accept the use of digital signatures for almost any type of transaction. In 2011 the Act was amended to offer better protection to Australian businesses and consumers using electronic signatures for their documents.
Types of electronic signature permitted
The ETA doesn’t provide a set definition of electronic signatures. But it does state that the signature needs to meet the following requirements to be legally enforceable:
E-Signature laws
Overview
The use of electronic signatures has increased in Canada in recent years. A trend that is expected to continue, with many industries such as legal and the government supporting their implementation. E-signatures are legally recognized at a federal level by PIPEDA, but there are also provincial specific legislations in place for each province and territory.
PIPEDA was enacted by the government and states that a signature that is required by federal law can be satisfied by an electronic signature. With the same credibility and legal status as a handwritten one. Whilst they are accepted in many use cases, PIPEDA will not cover their use in some cases. Such as real estate transactions and specific family law (divorce, wills, trusts).
UECA is a piece of legislation that applies at a provincial level with nine provinces adopting it for use as a model for eSignature legality. Certain federal statutes have independently included language that explicitly permits electronic signatures and documents.
Types of electronic signature permitted
PIPEDA defines an e-signature as a “signature that consists of one or more letters, characters, numbers, or other symbols in digital form incorporated in, attached to, or associated with an electronic document.”
E-Signature laws
Overview
The Electronic Signature Law was introduced in 2004, with revisions made in 2015 and 2019. It confirms that a document can’t be denied legal effect due to the electronic signature format. As long as the relevant parties agree to the use of e-signatures. However, despite the law in place confirming their validity, digital signatures are not always given as much legal weight as written signatures. Especially in circumstances that involve the government.
Types of electronic signature permitted
The Electronic Signature Law defines an electronic signature as electronic data that is contained within and attached to a data message. It is used to both identify the signer and confirm that they recognize the contents of the message. A “reliable” digital signature will hold the same legal stance as a handwritten signature or seal. But it must first adhere to certain conditions.
E-Signature Laws
Overview
For the 27 countries that are part of the EU eSignature law falls under the eIDAS regulation, which came into effect in 2016. All EU member states can use electronic signatures in cross-border transactions with other member countries. Without needing to spend any additional time or resources on validation or authentication. In determining the legal effect of electronic signatures, Article 25 of eIDAS states that:
Types of electronic signature permitted
eIDAS outlines three categories of electronic signatures: basic/simple, advanced, and qualified. A basic signature can take several forms and does not need to meet any additional requirements for security and verification. Both advanced and qualified signatures are required to meet further criteria in order to be legally recognized by eIDAS.
E-Signature laws
Overview
eSignatures are legal in Japan under the Electronic Signature and Certification Business Act 2000. The Act is tiered, with the law stating that e-signatures are legally equivalent to pen and paper in most cases. However, there are certain instances where the signatures might require certification by a government-approved entity. There are criteria that eSignatures need to adhere to in order to be legally binding in Japan.
Types of electronic signature permitted
In Japanese legislation an electronic signature refers to a measure that is taken with respect to information and recorded in an electromagnetic record. Adhering to the below requirements:
E-Signature laws
Overview
Mexico doesn’t have a dedicated law for the regulation of electronic records or signatures. However, there is general legislation that covers e-signatures and electronic commerce, which are the Federal Civil Code and Federal Commerce Code. Under these laws, e-signatures are accepted on digital agreements as legally binding with minimal exclusions. All regulations relating to electronic commerce and signatures are part of the federal jurisdiction. There are no local laws relating to this.
Types of electronic signature permitted
There are two separate types of e-signature distinguished in Mexican law, standard and advanced. Both types of signature are treated similarly and can be considered as legally binding. But advanced signatures are required to meet stricter requirements.
E-Signature laws
Overview
eSignatures have been legally recognized and accepted in New Zealand since 2002 under the Electronic Transactions Act. The CCLA 2017 confirms that documents cannot be denied because they have an electronic signature. Also, the Act treats e-signatures as a legal equivalent to a handwritten signature when confirming a party’s intention to be legally bound by a document. As long as the signature meets specific criteria. This criteria is the same as for e-signatures in Australia.
The ETA details certain circumstances in which an electronic signature is needed. Despite the fact that a handwritten signature would not have been required if the document was on paper. However, the Act still allows e-signatures to be considered equivalent to handwritten signatures in almost all cases.
E-Signature laws
Overview
Even though Norway is not part of the EU, it is closely linked to it through its membership within the European Free Trade Association (EFTA), and agreements around European Economic Area membership. Therefore, the eIDAS regulation has been fully incorporated into Norwegian law, through the Act on electronic trust services.
It’s also important to note the introduction of the new Financial Contracts Act in 2023, which enables the use of e-signatures. In addition, it states that “in writing” simply refers to the use of written characters. So when a law requires a written document, both paper and electronic forms are acceptable.
E-Signature laws
Overview
The use of electronic signatures was first permitted in the Electronic Communications Act, which covers everything related to digital transactions and documents with electronic signatures. However, the ECA doesn’t explicitly provide for the legal validity of e-signatures, but this has since been remedied by case law and the UK adaptation of eIDAS. The Law Commission has since concluded that the combination of UK eIDAS, ECA 2000, and case law, means that an e-signature is suitable for meeting a statutory requirement for a signature. If a verified intention of the signature and signer can be demonstrated.
The UK was previously part of the EU and therefore was part of the EU eIDAS regulation. However, since its departure, it has adapted its own version of the regulation which retains much of the criteria from the EU eIDAS.
Types of electronic signature permitted
The UK eIDAS defines eSignatures as data in electronic form that is attached or associated with other electronic data and which is used by the signer to sign a document. Like the EU, the UK eIDAS recognizes and has set definitions for three types of e-signature: basic, advanced, and qualified.
E-Signature laws
Overview
The ESIGN Act 2000 permits the legal use of electronic signatures in all 50 states and any US territory where federal law applies. In areas where federal law does not apply, most states have implemented the UETA which was published in 1999 by the Uniform Law Commission. ESIGN is the default law that regulates e-signatures at a federal and a state level. Granting the same legally binding status as a handwritten signature.
The UETA has been adopted in most jurisdictions and provides more detailed regulations for digital signatures at state level. It can be applied in many transactional situations in which ESIGN cannot cover. However, it’s important to note that certain legal notices such as property transfers and wills might be excluded from both the ESIGN Act and the UETA.
Types of electronic signature permitted
Under ESIGN and UETA an e-signature is defined as “any electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.”
Hopefully this guide has given you a greater understanding of the legal standpoint of eSignatures in several countries around the world. Whether your organization is based in these countries, or you’re looking to expand your offerings internationally and regularly send digital documents for signature, understanding these laws is essential.
eSign is an industry-leading e-signature and digital document solution provider that is compliant with a wide range of international laws and standards, ensuring the security and legality of our users documents, regardless of where they’re sending and signing them from. If you’re looking to streamline your document processes and improve efficiency across your business transactions. eSign can support your digital transformation.
Register for our 14-day free trial today to see how the eSign features can help your business. If you have any questions or queries regarding how the platform can support the specific requirements of your business, don’t hesitate to contact our friendly sales team. Our solutions can be tailored to your needs, whether you’re looking for an integration with another application, are a large scale enterprise who regularly sends a high volume of documents or anything else, eSign can help.
