Are electronic signatures legal in the UK? What are the main laws regulating electronic signatures?

Electronic signatures are legal in the United Kingdom. They are primarily governed by the Electronic Identification and Trust Services for Electronic Transactions Regulations 2016, the Electronic Communications Act 2000 (ECA), and the retained UK version of Regulation (EU) No 910/2014 of the European Parliament and of the Council of 23 July 2014 on electronic identification and trust services for electronic transactions in the internal market (commonly referred to as the UK eIDAS Regulation).

What is an electronic signature in the UK?

The UK eIDAS Regulation defines an "electronic signature" as data in electronic form which is attached to or logically associated with other data in electronic form and is used by the signatory to sign.

What types of electronic signatures are recognised in the UK? What are the respective requirements for each?

The UK eIDAS Regulation recognises three main types of electronic signatures: Simple Electronic Signatures (SES), Advanced Electronic Signatures (AES), and Qualified Electronic Signatures (QES).

1.Simple Electronic Signature (SES):

This is the most basic form of electronic signature. It can be as straightforward as typing a name or ticking a box to signify consent, yet it remains legally effective for most documents.

2.Advanced Electronic Signature (AES):

An AES must meet the following criteria:

• It is uniquely linked to the signatory;

• It is capable of identifying the signatory;

• It is created using electronic signature creation data that the signatory can, with a high level of confidence, use under their sole control; and

• It is linked to the data signed therewith in such a way that any subsequent change in the data is detectable.

3.Qualified Electronic Signature (QES):

A QES requires a qualified certificate issued by a qualified trust service provider (QTSP) and involves processes such as real-time video calls and identity verification.

In the UK, in which situations can electronic signatures be used?

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

• Human Resources (HR) documentation

• Corporate resolutions (subject to any contrary provisions within the company's articles of association or other constitutional documents)

• Non-Disclosure Agreements (NDAs) 

• Consumer transactions

• Education-related documents and agreements

• Life sciences agreements

• High-tech 

• Insurance policies and related documentation

• Software licensing agreements

• Healthcare-related documents

• Documents concerning movable property

• Procurement documentation (assuming no specific contrary requirements in the relevant procurement process)

• Documents requiring recording or filing

• Documents requiring notarisation

In the UK, in which situations is the use of electronic signatures restricted?

The use of electronic signatures may be restricted for the following instruments or in the following scenarios:

• Public document

• Specific banking documents or transactions 

• Certain loan agreements