HR Pulse

eSignatures are lawful forms of identification and evidence

There is a great deal more behind electronic signatures, including advanced electronic signatures, than mere aesthetic quality. Legally, this information is considered as evidence and can be of huge importance in business.

There is evidently more to electronic signatures than a business reducing its carbon footprint or complying with corporate governance regulations. Say legal experts, the legal implications are often taken for granted.

”From a legal perspective, a signature is evidence - it is an evidence that you use your name for something and adopt the content and record,” explains Mark Heyink, a guest speaker at a recent information session hosted by LAWtrust and Datafinity focused on eSignatures.

Technically, these signatures are defined as:

• Electronic signatures: Data attached to, incorporated in, or logically associated with other data which is intended by the user to serve as a signature. Electronic signatures include digitised and digital signatures.
• Digitised signature: Digital reproduction of a handwritten signature, e.g. faxed signature, picture of a signature or a signature capture tablet.
• Digital signature: Technology-specific electronic signature made by using a public/private key encryption process to ensure integrity.
• Biometric signature: General description of an electronic signature made with a biometric (body measurement such as a fingerprint) as an act of authentication/acceptance.

The e-signature has become widely used and, despite a lack of legal framework for regulation, has clear advantages that have increased its mainstream appeal.

“The advantage of electronic signatures, including advanced electronic signatures, is that the identity is evident. In other words, legally, any mark of any nature recognised as an identity is immediately apparent or obvious. Today, the e-signature is so well established that it is inevitably accepted and content adopted,” adds Heyink.

Benefits associated with using electronic signatures include:

• Reduction in the cost of administration,
• Reduction in time delays from physical signatures,
• Cost reduction in the region of 50%, and
• Convenience of instant, widespread approval.

Why invest in electronic signature technology?

For a business, the investment in electronic signature technology and applications translates into measurable value such as automated workflow, faster processing and turnaround times, better customer service, less risk to the organisation and users because of the established security and audit trail.

IT security companies in the business of electronic signatures and automated document capture solutions insist on the importance of minimising human intervention and reducing paper use to boost business efficiency.

Paul Wright, sales director at Datafinity, says businesses invest billions in ERP, ECM and electronic mails, but capturing a ‘wet’ signature seriously slows down the value of these solutions in the workplace.

“Signature pads are used at counters and point of sale (PoS) terminals. The inherent benefit of this technology is being able to reduce paper receipts and assist businesses by recording and maintaining digital records. These devices feature LCD technology, are uniquely secured, facilitate complete biometric capture and offer the unique ability to display the document being signed on the device itself,” adds Wright.

Electronic signatures are perfectly legal!

Legal experts went a step further in their deliberation and advised companies to note that electronic signatures are legal and there are specific considerations that must be kept in mind to enjoy the benefits.

Maeson Maherry, solutions director at LAWtrust, said to reduce personal and company risk, a signature must be a positive act of acceptance, visible and clear, must identify the individual and must be verifiable.

“A good signature will fulfil all these criteria and ultimately be able to be proved. We are moving into a new era of signatures and legal identification. Infrastructure like the signature pad adds substantial value in providing users with an easily managed device that eliminates the need to introduce data manually, that enhances CRM and ERP, and encourages audit control and manageability,” added Heyink.