E-signatures: What you need to know
Electronic signatures are digital versions of your signature that indicate your agreement to the contents of an online contract. They provide a hassle-free way to sign documents remotely, eliminating the need for physical paperwork, and enabling faster and more streamlined transactions.
They are legally binding for a variety of purposes and can either be typed, drawn on the screen of an electronic device, or uploaded from your desktop. This modern alternative to wet signatures has been adopted across the world, as it empowers individuals and businesses to sign documents online in a legal, secure, and efficient way.
Expanding business horizons with
e-signatures
E-signing is a massive opportunity for businesses to speed up their document signing processes and close deals faster. The use of e-signatures in Australia has evolved significantly, driven by the need for efficiency, security, and convenience.
Zoho Sign offers heightened security and global accessibility while ensuring compliance with Australian regulations. It can help businesses in Australia achieve optimal performance by ticking crucial boxes, such as:
- Speedier signing processes
- Improved productivity
- Signer authentication
- Security
- Remote access
- Improved user experience
- Cost-effectiveness
E-signatures in action: Top fields of use
E-signatures in Australia
The sudden digital shift in the pandemic era forced Australian businesses to get on board for a transformative journey to e-signatures. While the digitisation of signatures has enabled Australian businesses to accelerate and simplify business operations, they can pose cybersecurity concerns if ethicality is compromised. Australia has enforced strict e-signature laws to protect digitally signed documents and enhance their security. Zoho Sign helps users navigate e-signature compliance in Australia without a hitch.
The Electronic Transactions Act (ETA), 1999
Electronic signatures are predominantly used in Australia for transactions across business domains. The ETA states that a transaction cannot be held invalid because it took place by electronic means. The Australian law recognises signatures signed by electronic means and gives them the same evidentiary value as traditional wet signatures, provided the following requirements are met:
Identification:
The method of affixing the electronic signature should identify the signatory and their intention in relation to the electronic document being signed.
Reliability:
The method of affixing the electronic signature should be reliable and appropriate for the purpose it is being used.
Consent:
Parties relevant to a transaction or electronic document that is being electronically signed should have consented to the use of e-signatures.
Apart from the above Commonwealth law, there are also dedicated state laws in Australia that govern the use of e-signatures, whose requirements may differ from those mentioned above.
Cases where e-signatures are prohibited
Exclusions from the ETA:
- Any rules of practice and procedure of a court or tribunal.
- Evidence Act 1995, or law of a state or territory that corresponds to the Evidence Act 1995.
- A law of a state or territory or a rule of common law relating to the way in which evidence is given in proceedings in a court.
Exclusions from the Electronic Transactions Regulations (ETR):
The ETR contains a list of provisions under the common wealth law to which electronic signatures are not applicable unless specified otherwise by any other law.
Gatekeeper Public Key Infrastructure (PKI) Framework
The Gatekeeper PKI Framework governs the use of electronic signatures by government entities or agencies, by a non-government entity, or by a person while dealing with the government. It regulates the use of digital keys and certificates to affirm the identity of subscribers to authentication services.
The Gatekeeper PKI Framework is presided by the gatekeeper competent authority that consequently accredits PKI service providers as a registration authority, certification authority, or validation authority, or any combination of these. View accredited service providers
The Framework stipulates a different set of requirements for electronic signatures than those put forth by the ETA:
- There are no accredited certification authorities under the ETA, but there is one under the Framework.
- Identification of the signatory or subscriber is executed in contrasting ways. Under the ETA, the requirement is met by PKI-based signatures and OTP/TFA authentication methods. Whereas under the framework, the requirement is met by the registration authority verifying the identity of the signatory or subscriber, and then placing a request with the certification authority to create and issue a digital certificate.
How can Zoho Sign accelerate Australia's digital transition?
Zoho Sign's features help businesses efficiently streamline workflows while bolstering security.
Identification and reliability:
Zoho Sign employs strong authentication techniques, such as OTP authentication and PKI-based digital signatures using digital certificates, to ensure that the e-signature is uniquely identifiable.
Intention of the signatory:
This can be collectively projected by the contents of the electronic documents (e.g., terms in an agreement), audit trail, and completion certificate.
Consent:
Zoho Sign provides a checkbox label to help users indicate their consent to signing a document electronically or their consent to the terms in the electronic document.
Enhanced security:
Zoho Sign employs robust encryption protocols, such as the military grade AES-256 encryption at rest and the TLS/SSL protocol in transit, to ensure that the data transmission between the signing platform and the data being signed is secure. This prevents exposure of documents and data from data breaches.
Audit trails:
Modifications made to the document after signing should be easily detectable. This is made possible through audit trails that capture timestamps, IP addresses, signing procedures, and other pertinent activity.
Legal recognition:
Zoho Sign adheres to the requirements outlined in the ETA to ensure that e-signatures created using the application are legally recognised and enforceable in Australia.
Document timestamping
A digital timestamp is a digitally signed notation that is appended to the electronic data, digital signature, or certificate that indicates that certain digital data exists at a certain point in time. This process securely binds the date and time to the document, ensuring its authenticity and integrity.
Zoho Sign partners with recognised timestamping authorities, GlobalSign and Seiko, to provide trusted digital timestamps for electronic transactions. These timestamps validate the authenticity of e-signatures and verify that the signed document existed in the given form at the time of signing and remains unaltered. This adds a robust layer of security to the signing process. By making signatures tamper-proof, digital timestamps enhance the reliability of signed documents for both legal and commercial purposes.
Conclusion
E-signatures are a crucial component for crafting strong and secure automated business processes. As Australia gears towards complete digitisation, Zoho Sign stands as an invaluable ally, offering a seamless solution to navigate the e-signature landscape and guaranteeing compliance with the Australian e-signature laws, ETA and ETR. With this adoption, users can collaborate globally from the comfort of their homes at a minimal cost. Join us in embracing the future of signing and see what we have to offer!
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Disclaimer
The information provided in this document is for general informational purposes only and shall not be construed as legal, regulatory, or any other form of professional advice. Zoho Sign disclaims any liability for any error in the information provided herein. We recommend that you consult your legal counsel for any questions that you may have in this regard.