New Zealand Electronic Signature Compliance Explanation

Are electronic signatures legal in New Zealand? What laws primarily regulate electronic signatures?

Electronic signatures are legal in New Zealand, and New Zealand electronic signatures are primarily regulated by the Contracts and Commercial Law Act 2017 (“CCLA”) and the Electronic Transactions Act 2002.

What is a New Zealand electronic signature? What are its validity requirements?

New Zealand does not distinguish between different types of electronic signatures. According to the relevant provisions of the CCLA, an electronic signature is enforceable and acceptable at the same level as a “wet signature” if it meets the following requirements:

• The signing method must identify the identity of the signatory and indicate their intention to sign the relevant document or transaction;
• The signing method must be appropriately reliable based on the purpose and circumstances of the required signature; and
• The person providing the signature must agree to the signature method used.

An electronic signature can be presumed to be “as reliable as possible” if it meets the following requirements:

• The method of creating the electronic signature is unrelated to the signatory and not associated with any other person;
• The method of creating the electronic signature is controlled by the signatory, not subject to the control of any other person, and any changes made to the electronic signature after the signing time are detectable;
• If the purpose of the signature is to ensure the integrity of the information associated with it, as required by law, any changes made to the information after the signature are detectable.

In what scenarios can electronic signatures typically be used in New Zealand?

Electronic signatures can be used in the following scenarios, but are not limited to:

• HR documents, such as employment contracts, benefit documents, and other new employee onboarding processes
• Business agreements between corporate entities, including NDAs, procurement documents, and sales agreements
• Consumer agreements, including new retail account opening documents
• Certain real estate documents, such as lease agreements
• Intellectual property licenses, including patents, copyrights, and trademarks

In what scenarios in New Zealand is a traditional signature required?

The following scenarios require a traditional signature:

• Powers of attorney (including enduring powers of attorney)
• Affidavits, statutory declarations, or other documents provided under oath or non-religious affirmation
• Wills and other testamentary dispositions
• Negotiable instruments (such as checks)
• Bills of lading
• Proclamations
• Information that must be provided in writing in person or by registered mail
• Notices that must be attached to or left or displayed anywhere;
• Documents submitted under statutory provisions that must be presented or served with authorization;
• Warrants or other documents for entry into premises;
• Searches of any person, place, or thing;
• Seizure of any item (such as search warrants and seizure warrants);
• Documents explicitly specified under the Fair Trading Act 1986 (such as information standards, product safety standards, or service safety standards).