Can I get contracts signed electronically if signatories are working remotely?
With the outbreak of coronavirus leading to a requirement for more employees to be working remotely, especially following Government advice that all non-essential travel including to and from work should be avoided, there has been an increased requirement for businesses to be more flexible in their approach to signing contracts.
The traditional approach has been for contracts to be printed and signed with a “wet ink” signature. However, this is not a strict legal requirement in the majority of circumstances and contracts can be formed without this degree of formality. English law recognises that contracts can be formed by electronic means – including the exchange of emails or the typing of a name into a document to signify agreement to it.
Whilst this approach offers a lot of flexibility, more sophisticated electronic signature tools are recommended for important documents, to enable the identity of the signatory to be validated and reduce the possibility of fraud.
If businesses are considering changing their contracting processes because of coronavirus, or because of a general shift towards paperless working, it is important to ensure that proper approval processes remain in place, and to consider whether a software tool should be used to complement them. Systems such as DocuSign are widely used.
There also remain some situations where legal advice is recommended before relying on an electronic signature:
- Where the other party is abroad – as local laws that are different from English law might apply
- If executing a deed – the law requires certain types of document to be executed as a deed (for example, transfers of land and powers of attorney), and the issues around electronic signature and witnessing are more complicated here
Related FAQs
Aside from the CBILS Scheme, the Government have, or are in the process of, implementing several different schemes to support businesses financially through the Covid-19 outbreak.
The guidance is clear that furloughed staff must receive no less than 80% of their reference pay (up to the monthly cap of £2500).
Employers cannot enter into any transaction with the worker which reduces the wages below this amount. This includes any administration charge, fees or other costs in connection with the employment.
Employees will be reluctant to take unpaid leave or a sabbatical but when faced with the alternative prospect of redundancy may give it some serious consideration. This would remove the cost of that employee from the employer’s business for an agreed period of time. This is an option which can be offered to employees but again, imposing it without agreement creates significant risk.
The Government expects the use of bespoke contractual documents to implement temporary arrangements relating to your PFI contracts.
With time and resource precious commodities, focus should be given to documenting:
- The key changes to your PFI requirements
- The temporary nature of the measures
- The requirement for best efforts on behalf of the PFI Contractor
- The importance of continued health and safety measures at all times
Ordinarily, no but during the pandemic, yes.
You can start employing a Tier 2 or 5 worker who is in the UK before their visa application has been decided if the following conditions have been met.
- You have assigned the worker a Certificate of Sponsorship
- They have made an in time visa application (i.e. they made their new visa application before their current leave expired) and they have provided you with evidence of this
- The job you employ them in is the same as the one stated on their Certificate of Sponsorship.
Sponsors should be aware that they should carry out right to work checks before the individual starts undertaking work for them and if their visa application is eventually rejected, they must stop employing them.
Although sponsors will not be able to record migrant activity on the SMS about these workers, the Home Office has confirmed that any necessary reports should still be made on the sponsor’s internal systems.
If the worker is outside the UK, they may be able to start work for you remotely subject to the relevant employment, tax and immigration requirements in that country.