Digital signatures simplifies corporate HR processes and workflow

NemID, a digital signature and single login for public websites, online banking and many other municipal services is a valuable tool for simplifying corporate HR processes and workflow.

Back in the “good old days,” employment contracts and other documents were physically signed by the employee and employer by placing their signatures on a paper with ink. That is still the most common method – and it provides clear evidence that the persons signing are actually those bound and named in the contract.

As communication moves however, from the physical to the digital, there is a need for new methods – and that means that instead of physically signing documents, we are beginning to sign them digitally. In simple terms, a digital signature is an electronic signature. It provides the same assurances as a physical signature; that the persons signing are those they purport to be when signing.

A digital signature is thus a trusty substitute for pen and ink. The infrastructure behind NemID ensures the identity of the individual signatories, in much the same way we know from online banking.

Requirements for signature

Anyone who claims to have reached an agreement must be able to prove that the other party has expressed his or her willingness to be bound by the agreement. If the agreement is either complex or contentious – or involving a prescribed sum or value – the requirements for proving that the agreement was made are particularly great.

But as there are no formal requirements for how a contract must be concluded, an agreement may therefore be written, oral or implied. It may also be digital.

According to a report from the Danish Ministry of Justice “…a digital signature can generally be equated with an ordinary paper-based signature…” Thus, the Danish courts recognize digital signatures.

HR department documents

When concluding employment agreements, information detailing conditions of employment must be provided in writing to the employees. This must be contained in a formal employment contract signed by the employee and the employer (recommended in most cases), a letter of employment (the employer’s unilateral confirmation of employment) and any other documents.

Employment contracts can be given to employees electronically; subsequent changes may be communicated in electronic updates, for example, by e-mail, provided that email is a natural form of communication in business and in communicating to the individual employee.

Digital signatures on employment contracts, bonus agreements and other employee-related documents can contribute to efficient HR workflows. The documents that once had to be printed, then signed and then scanned again, can now be signed with digital signatures directly in digital form.

For some companies, digital signatures are also being used as the starting point for systems that electronically archive all legal staff documents.

In cooperation with an external partner, we can assist companies in creating high-assurance digital-signing process that provide flexibility, convenience and integration of legal documents for staffs and HR. Please contact us for further information – or if you have any questions.