Companies are constantly looking for ways to optimise processes and reduce the workload of their employees. The introduction of digital signatures is one solution to this. Instead of wasting time printing and sending paper contracts, your employees can have them signed digitally without any stress.

What are the advantages of signing a contract electronically?

Digital signatures enable fast and efficient contract processes. Employees do not have to be physically present to sign contracts, but can conveniently sign them from their home office or while travelling. The flexibility and reduced time required per signature improve the work-life balance of your employees enormously.

The advantages at a glance:

  • Speed: Contracts can be signed and sent online in seconds.
  • Flexibility: Parties can sign documents from anywhere and at any time. With many providers, electronic signatures are also possible on mobile devices. In some cases, a dedicated app is offered.
  • Cost efficiency: Companies save on printing, dispatch and archiving costs and utilise their employees’ working time more efficiently.
  • Security: Providers such as Certifaction send documents in encrypted form and optionally with password protection. If a qualified electronic signature is used, a trust service provider also verifies the identity of the signatory.

Types and legal validity of digital signatures

The eIDAS Regulation defines three types of electronic signatures: simple electronic signatures (SES), advanced electronic signatures (AES) and qualified electronic signatures (QES). QES have the highest probative value and are considered equivalent to handwritten signatures. A contract with an electronic signature is legally valid in many cases – as long as you fulfil the case-specific requirements.

What type of signature do I use and when?

  • SES: In low-risk cases where freedom of form is sufficient.
  • AES: If a simple identity check (by e-mail address and telephone number) and data integrity are important, but no legal written form is required.
  • QES: For high security and probative value requirements. Here, the identity of the signatory is verified by an identification document. Only the QES fulfils the written form requirement, which is prescribed in Germany for fixed-term employment and rental contracts, for example.

For which companies is the electronic signature worthwhile?

In relation to the savings and increased productivity, the costs for signature software are very low. Investing in digital signatures is worthwhile for companies of all sizes and in all sectors, as contracts are used everywhere and digitisation must be addressed sooner or later.

Digital signatures are particularly attractive for companies with high volumes of contracts to be signed. Personnel service providers and temporary employment agencies have to create a large number of employment contracts every day and have them signed by various parties. By using an eSignature tool, the process can be completed in just a few hours, which also enables short-term personnel assignments. In addition, fast onboarding is particularly important in the “war for talent”. If you offer the signature online, the bounce rate of your candidates decreases.

What is important when choosing a tool?

There are various providers of digital signatures that differ in their range of functions, security standards and pricing. You should pay particular attention to this when making your choice:

  1. Compliance with eIDAS and data protection laws
  2. User friendliness
  3. Available features
  4. Possibility of integration into existing systems
  5. Quality of customer service

Caution: Although providers such as DocuSign and Skribble make it possible to sign documents efficiently online, the security of your data is not guaranteed at all times. As a privacy-first provider, only Certifaction relies on end-to-end encryption and local processing of your documents, thus offering maximum protection for sensitive information.

Conclusion

Digital contract signing offers many advantages: from cost savings to an improved work-life balance for employees. With a reliable eSigning solution, your contracts can be signed digitally in a stress-free and legally valid manner. However, it is important to know the legal requirements and choose the right form of signature for each use case.