Electronic signature laws and validity in the UK

Whether you've been asked to sign a document electronically, or you're considering a more convenient way to sign contracts, you've come to the right place.

In this comprehensive guide, we cover the laws and regulations on electronic signatures in the UK, including when they're valid, and the most secure ways to create them.

Are electronic signatures legal in the UK?

Electronic signatures are considered legally binding in the United Kingdom, provided there is clear evidence of the signer's intention to authenticate the document, and other statutory requirements are met.

“An electronic signature can generally be used in place of a handwritten signature as long as the usual rules on signatures are met” - Stephen Lewis, Commercial and Common Law Commissioner

In fact, there are several different UK and EU laws and regulations confirming and upholding the validity of electronic signatures in the UK.  Let’s explore each of these regulations, and what they say, now. 

UK laws on electronic signatures

Electronic Communications Act 2000

The Electronic Communications Act 2000 is a UK law that provides the legal foundation for the use of electronic signatures and electronic communication in commercial and legal settings. 

It recognizes that electronic signatures are as valid as wet ink signatures, provided that there is an intention to authenticate the document, and the electronic signature can be verified as genuinely representing the signer.

This means a few things for UK-based individuals and businesses in practice: 

• Legitimacy of eSignatures: This law made it clear that electronic signatures can be legally binding, opening the door for the widespread use of digital signatures in commercial agreements and other legal documents.
• Broad applicability: eSignatures are valid across most sectors, including corporate and government contracts, helping to facilitate electronic commerce and remote business operations instead of inhibit them.
• Flexibility: There is no specific requirement for the type of technology used to create an eSignature, making the law adaptable to different forms of electronic signing, such as typed names, scanned signatures, or click-to-sign platforms.
• Exceptions: While eSignatures are generally accepted, certain documents—such as wills, land transactions, and some consumer credit agreements—are still required to be signed in wet ink.

eIDAS Regulation (EU) No 910/2014

The eIDAS Regulation is an EU-wide law designed to standardize electronic identification and trust services across EU member states. It sets out rules for eSignatures, electronic seals, time stamps, and other trust services to ensure their legal recognition across borders within the EU. 

Although the UK has since left the EU, the good news is that the UK continues to follow a modified version of eIDAS, meaning that eSignatures in compliance with eIDAS are still legally recognized in the UK, and UK businesses can still engage with EU entities using compliant eSignatures.

Notably, the regulation distinguishes between three types of electronic signatures:

• Simple Electronic Signature (SES): A basic form of eSignature, such as a typed name or scanned signature.
• Advanced Electronic Signature (AES): Requires the use of a unique identification method for the signer, ensuring the signature is linked to and controlled by the signer.
• Qualified Electronic Signature (QES): The most secure, requiring the use of a qualified certificate issued by a trusted service provider.

The idea is that higher-risk legal documents or transactions that warrant greater protection may require a qualified electronic signature, which is the most onerous to obtain. Meanwhile, routine transactions will typically be completed with either a simple or advanced electronic signature. 

Just remember that it is ultimately still up to each EU member state to decide which type of eSignature is suitable, and when. Some European countries may require notarization for some documents, and others won’t. You can read more about it in our detailed guide to the eIDAS regulation.

Are eSignatures widely used and accepted in the UK?

Electronic signatures aren’t just valid in the United Kingdom. They’re also popular. In fact, a study revealed that over 83 per cent of businesses in the UK leverage eSignatures for some, many, or most of their commercial transactions and processes. 

This actually sets the UK ahead of other European countries when it comes to embracing the digital way of working, with the UK holding the largest market share for eSignatures in Europe in 2023, at 34 per cent. 

This modern approach to signing contracts has only grown in popularity since the introduction of hybrid working whereby businesses and individuals increasingly need to get documents agreed across regions, or even borders. 

“In today’s world, individuals, consumers and businesses demand modern, convenient methods for entering into binding transactions” - The Law Commission

Wondering how they're adopted in your industry? Check out this guide to the most common use cases for eSignatures.

How to create a legally binding electronic signature in the UK

We know that electronic signatures enable businesses to close deals faster and more efficiently. But how can you create one that's secure and legally binding?

Well, the most secure way is to use an electronic signature solution like Docusign, or a comprehensive contract management platform like Juro that offers native eSigning functionality as standard. These tools enable you to sign a document electronically, from any device, in just a few clicks.

Way easier than co-ordinating in-person meetings and getting things hand signed, right?

Juro's advanced electronic signature (AdES) standard complies with eIDAS, E-SIGN and UETA acts, making it a quick, secure, and intuitive way to sign agreements individually or at scale.

This means UK-based businesses and individuals can progress contracts faster, whether that's a job offer letter or an MSA.

Best of all, Juro's native eSignature solution is embedded in an end-to-end contracting solution, meaning you'll also be able to create, negotiate, review, store, track, and renew contracts within the platform. Want to find out more? Hit the button below.

What have the courts said about eSignature validity in the UK?

There are a few key instances where the UK courts have discussed the use and validity of electronic signatures. Let’s run through a couple of these now. 

Neocleous v Rees [2019] EWHC 2462 (Ch)

Neocleous v Rees is the most recent high-profile case on eSignature validity in the UK.

This was a UK High Court case that addressed the validity of electronic signatures in an email chain. The dispute arose over a settlement agreement involving the sale of land, where one party argued that the agreement was not valid because it lacked a proper signature. 

The signature in question was an automatically generated email signature containing the solicitor's name, firm, and contact details. However, the High Court ruled that the automated email signature did constitute a valid signature under the Law of Property 1989 Act,  which mandates that contracts for the sale of land must be in writing and signed.

The court reasoned that the automatically generated email signature, combined with the context and the finality of the email exchange, demonstrated an intention to authenticate the email and conclude the agreement. Due to this, the eSignature was deemed valid. 

They also said that the presence of the automatic email signature met the legal requirement for a signature, as the solicitor’s name was applied deliberately through the process of sending the email.

What does this mean for eSignature law in the UK?

The court confirmed not only that eSignatures are valid, but also that automatically generated email signatures can constitute valid electronic signatures in certain contexts, particularly where there is a clear intention to authenticate the communication. 

This case also confirmed that email signatures could satisfy the statutory requirement for written and signed agreements in land transactions, provided there is intent to form the contract.

Golden Ocean Group Ltd v. Salgaocar Mining Industries Pvt Ltd

In this case, the court dealt with the issue of whether email communications could form a binding contract under the Statute of Frauds. The court held that the exchange of emails, even without a traditional signature, could satisfy the requirement for a signed contract. 

This case supports the view that electronic communications can be considered valid signatures, as long as there is a clear intention by the parties to form a binding agreement.

What does this mean for eSignature law in the UK?

This case demonstrated that email exchanges can constitute valid signatures. By doing this, it confirms that electronic communications can satisfy signature requirements, so long as there is a clear intention to form the contract. 

Caton v. Caton [1867] LR 2 HL 127

The case of Caton v Caton predates modern eSignature considerations (and technology!) but is still relevant in understanding the principles of signatures. The court emphasized that the act of signing a document indicates an intention to authenticate it. 

This case established the principle that what constitutes a valid signature depends on the intention of the parties rather than the form of the signature itself. Though the case involved handwritten signatures, its principles are applicable to the interpretation of electronic signatures today.

What does this mean for eSignature law in the UK?

Although this case is dated, it lays the foundation for the future acceptance of eSignatures in the UK by clarifying that the key to signature validity is the intention to authenticate and finalize the document, not just the form the signature takes.

Yuen v. Wong [First Tier Tribunal] (2016/1089)

The case of Yuen v Wong dealt with the validity of an eSignature in property transactions.

During the case, Wong argued that the electronically signed document should be considered invalid because it did not comply with the traditional requirement for a handwritten signature, particularly for property transactions, which often have stricter formalities.

However, the tribunal held that an electronic signature was valid under the UK’s Electronic Communications Act 2000, as long as there was clear evidence of the signer's intention to authenticate the document. 

What does this mean for eSignature law in the UK?

This case reinforced that electronic signatures can still be valid for property-related agreements, which are typically subject to stricter formal requirements. It also supports the broader principle that eSignatures are legally valid in the UK when there is clear intent and when statutory requirements are met.

R (on the application of Mercury Tax Group Ltd) v. HMRC [2008] EWHC 2721 (Admin)

In this case, the court considered the validity of signatures in tax documents and whether the process used to apply a signature complied with the statutory requirements. 

The facts were as follows:

• Mercury Tax Group Ltd was involved in a tax planning scheme that required specific documentation to be signed.
• The process used involved having signatories sign signature pages separately, which were then attached to final versions of documents after the fact.
• HMRC challenged the validity of this process, arguing that the signatures did not meet the legal requirements because the documents had been altered or finalized after they were signed.

In this case, the High Court ruled in favor of HMRC, holding that the process used to sign the documents was invalid. Notably, they said that the act of affixing a scanned signature onto a document after it was finalized did not constitute a valid signature, as the document had not been signed in its final form. 

A signature must be applied to the final version of the document in question. Altering the document after it was signed undermined the authenticity and integrity of the signature process.

However, this is true for both handwritten and eSigned documents, and it shouldn't undermine the validity of an eSignature in the UK more generally.

What does this mean for eSignature law in the UK?

This case highlights that while eSignatures are valid, the process used must ensure the integrity of the final document and signature.

Are there industry-specific standards for electronic signatures in the UK?

While the general principles of electronic signature law apply across sectors, some industries have implemented specific requirements:

1. Financial services: The Financial Conduct Authority (FCA) provides guidance on the use of electronic signatures in regulated activities. You can find this guidance here.
2. Healthcare: The NHS has guidelines for the use of electronic signatures in medical records and prescriptions. These guidelines are available here.
3. Legal sector: The Law Society has issued practice notes on the use of electronic signatures in legal documents. You can access these notes here.
4. Government contracts: The Crown Commercial Service has specific requirements for electronic signatures in public sector procurement. You can find these requirements here.

Frequently asked questions

Can eSignatures be used to sign deeds in the UK?

There’s no clear precedent on whether a simple electronic signature can be used to execute a deed. However, Pinsent Mason believe that so long as certain conditions are met, an electronically signed deed will likely be valid. 

Can an eSignature be used for cross-border transactions?

Yes, eSignatures can be used for cross-border transactions. The UK continues to follow the eIDAS regulation for eSignatures, which ensures their recognition within the EU and other countries that have similar frameworks.

Has Brexit invalidated electronic signatures within the UK?

No. The UK’s separation from the European Union has not changed the rules around eSignatures in the United Kingdom. The UK has retained its stance through the UK eIDAS Regulation, which still declares that these are permitted and deemed legally binding. 

Do eSignatures hold the same weight as handwritten signatures?

Yes, eSignatures generally hold the same legal weight as handwritten signatures on most documents, provided they meet the necessary requirements such as intent to sign and appropriate methods of verifying the signer’s identity.

How can you prove the validity of an eSignature?

To prove the validity of an eSignature, there should be evidence of the signer’s identity, their intention to sign, and assurance that the signed document has not been tampered with. This is typically achieved through audit trails, encryption, and secure signing platforms.

Are there any specific requirements for eSignatures in UK courts?

UK courts generally accept eSignatures as valid evidence, as long as the party can demonstrate the signer's intention to sign and that the process complies with legal requirements. Cases like Golden Ocean Group Ltd v. Salgaocar affirm this.

Do eSignatures need to be witnessed?

In some exceptional cases, particularly for deeds, a witness may be required. The witness can also electronically sign the document, but they must be present at the time of signing and able to confirm the signer’s identity.

Is a typed name at the end of an email considered an electronic signature?

Potentially, yes. UK courts have ruled that a typed name can constitute a valid electronic signature if it's clear there was an intention to sign. When deciding on the legal validity of an agreement over email, it’s worth remembering that the key elements of a contract need to be present in any case. 

Are electronic signatures more easily forged than handwritten signatures?

Not necessarily. Advanced and qualified electronic signatures often incorporate security features that can make them more difficult to forge than traditional signatures.

Can I use an electronic signature for all types of documents?

While electronic signatures are valid for most documents, some exceptions exist, such as wills and certain real estate transactions. It's best to consult legal advice for specific cases.

Juro is not a law firm and this article should not be relied on as legal advice.