Legality of eSignatures in Austria

Background

The advent of electronic signatures has transformed how documents are verified, streamlining the process of finalizing agreements within Austria and on a global scale. These digital methods facilitate fast and environmentally friendly signing processes, reducing paper consumption and accelerating deal closures. Nevertheless, it is vital for those implementing electronic signatures in Austria to be aware of important factors.

Individuals must opt for an eSignature service that is compliant with Austrian regulations, especially by the Austrian Federal Electronic Signature Law, which equates the validity of electronic signatures to that of traditional handwritten ones. It is also important to note that specific documents may still require a manual signature, and local legal requirements may differ; thus, seeking legal advice is recommended.

Ensuring the security of the eSignature platform is paramount. The chosen service should incorporate robust security measures such as encryption, authentication protocols, and audit logs to prevent unauthorized use and uphold the integrity of the documents. Services like BoldSign provide these security assurances to meet compliance and safeguard transactions.

In summary, while electronic signatures offer numerous advantages and are widely accepted, adhering to legal norms, prioritizing security, and selecting a user-friendly platform for their successful application in Austria is essential.

What is an eSignature

Under Austrian regulations on digital signatures, these legally acknowledged electronic imprints consist of a unique combination of letters, characters, numbers, or symbols connected to an electronic document. In Austria, these digital signatures carry legal weight on most documents, provided they can be unequivocally attributed to the signatory, and there is proof to validate their legitimacy, confirming the document remains unaltered and genuine. It is also essential that the signatory’s deliberate consent to the document’s content is clear, signifying a conscious acceptance of its conditions. When these conditions are met, digital signatures are considered legally binding as a wet-ink signature.

Overview of Electronic Signatures in Austria

Generally, an eSignature is accepted to hold the same legal image as a wet ink signature. The use of electronic signatures in completing transactions within Austria is regulated by:

Austrian Federal Act on Electronic Signatures (Signature Act – SigG)¹
Regulation (E.U) 910/2014²

The federal electronic signature law categorizes eSignatures into³:

Standard Electronic Signatures
Advanced Electronic Signatures
Qualified Electronic Signature

A standard electronic signature is any electronic data connected to, integrated within, or logically linked with other electronic data, and it functions to verify the identity of the supposed sender.

An advanced electronic signature is explained as an electronic signature meeting the following set of requirements⁴:

Uniquely linked to the signatory.
Capable of identifying the signatory.
Created using means that the signatory can maintain his control.
Linked to the data it relates to so that any subsequent change to the data is detectable.

Uniquely linked to the signer

An advanced electronic signature must be uniquely connected to the person using it. The signature must be uniquely made with methods only the signer can access, like a private key and confidential information, to verify their identity.

Use and incorporation remain in their sole control

The person using the secure electronic signature must have sole control over the means of creating the signature. Typically, this requires managing a key pair or two-factor authentication, with the signer exclusively holding the private key to prevent signature forgery.

Identify the signatories

The process used to create the signature must be capable of identifying the person signing. This may include using a biometric signature, a Personal Identification Number (PIN), an email address, or even a company registration number.

Track down any alterations made after signing

It is essential to preserve the authenticity of the signed document. Modifications made to the document post-signature should be identifiable. This is commonly accomplished through an audit trail. Audit trails record the signer’s IP address, timestamps of key signing events, and location, providing proof of identity, timing, and signature place.

A qualified electronic signature is an advanced electronic signature that is generated using a certified device to create electronic signatures and relies on an accredited certificate specific to electronic signatures.

Article 32⁵ of the eIDAS sets out a validation criterion to be met by the one for a qualified eSignature. These are:

Statutory compliant certificate at the time of signing.
A qualified trust service provider issued a valid certificate when signing.
Signature validation data corresponds to the data provided to the relying party.
The unique set of data representing the signatory in the certificate was correctly provided to the relying party.
The use of any pseudonym is clearly indicated to the relying party if used at the time of signing.
The electronic signature is of a qualified electronic signature creation device.
The integrity of the signed data has not been compromised.
Meets validity standards of an advanced eSignature.

Summary

Under Austrian Federal Act on Electronic Signatures (Signature Act – SigG) and Regulation (E.U) 910/2014

Type of Signature	Unique Features	Legal Validity
Simple Electronic Signature	No unique feature other than being data in electronic form.	Validity is dependent on the evidentiary weight.
Advanced Electronic Signature	Uniquely linked to the signatory, Capable of identifying the signatory, Created using means that the signatory can maintain his control. Linked to the data it relates to so that any subsequent change to the data is detectable,	Validity is dependent on evidentiary weight across jurisdictions.
Qualified Electronic Signature	Certificate compliant with laws provided at signing. The trust service provider issued a valid certificate at signing. Signature validation matches the data given to the recipient. The signatory's unique data is accurately given to the recipient. Any pseudonym used is disclosed to the recipient. Signature made with a qualified electronic signature device. Signed data integrity maintained. Meets all features of advanced eSignature.	Deemed valid in jurisdictions across the E.U.

The scope and limitations of eSignature transactions

Electronic signatures are not uniformly recognized by law for completing transactions. As such, there are certain situations where electronic signatures are appropriate, and others are not advisable. An analysis of this issue is presented below, along with a concise table outlining the various transactions.

Documents that can be signed

Electronic signatures can be employed to affix signatures and provide countersignatures on a diverse array of documents, such as:

Human resources
Procurement
Non-disclosure agreements (assuming they are contracts, not formal deeds)
Public petitions
Internal correspondences
Insurance industry
Educational field

Cases where advanced electronic signature is required

Signing of documents issued by the public-sector controller.⁶
Supreme Court decisions⁷
Pleadings⁸
Identification of participants in data exchange, data security during the transmission of operationally necessary traffic, and location data to legally entitled authorities for information purposes transmitted via central information handling.⁹

Cases where only qualified eSignatures & wet-ink signatures are authentic

Under Article 25 of the eIDAS¹⁰which has been ratified by Austria, qualified electronic signatures are deemed to bear the same legal validity granted to wet-ink signatures, such as in entry and cancellation of license rights and liens¹¹. Subsequently Austria, under Section 2(4) of the Act on electronic signatures¹², deems qualified electronic signatures satisfactory in the execution of all contractual documents required by law to be in writing¹³except for those exempted from electronic signature use.

Exemptions

In limiting the use of eSignatures, the federal electronic signature law¹⁴ exempts testamentary dispositions from the use of electronic signatures. The following documents can only be completed in the electronic signature if the document drawn up on the declaration contains a confirmation by a notary or lawyer that he has instructed the signatory on the legal effects of his signature¹⁵:

Declarations of intent under family and inheritance law.
Declarations of guarantee made by persons outside of their commercial, business, or professional activities .

Scope and limitations

Permissible transactions	Exempted transactions
Human resources Procurement Non-disclosure agreements (assuming they are contracts, not formal deeds) Software license agreements Public petitions Internal correspondences Insurance industry Educational field, etc.	Statutory declarations Family law transactions, Family and inheritance law transactions requiring written or more formal documentation. Legal acts needing notarization or official verification for validity. Acts or requests necessitating notarization for registration in official records. Lease terms unfavorable to tenants. Irrevocable employee approval for surveillance during the consent period.

To guarantee the legitimacy of an electronic signature, it is recommended to adhere to the following best practices in addition to meeting all relevant legal criteria:

Verify the identity of the person signing and, in corporate transactions, confirm that the individual is authorized to represent the corporation in signing.
Obtain explicit consent from the person signing, which can be included within the contract itself or in a distinct agreement, acknowledging their intent to employ the designated electronic signature method for the document.
Ensure that the document is protected against alterations once the signature has been applied; and
Maintain a detailed record of the signing process that documents every action taken by the signer.

How does BoldSign help

The following elements of compliance available within BoldSign can be used to comply with Austria’s eSignature laws:

Secure and unique signing link: A secure and unique link to sign a document is sent directly to the signer’s email address. This ensures that the document is only accessed by the intended signer and cannot be tampered with.
Password protection: Senders can specify a password that needs to be entered before viewing and signing a document. This adds another layer of security to the signing process.
Audit trail: The IP address of the signer and timestamps for all significant events in the signing process are recorded in an audit trail. This provides a record of who signed the document, when, and where.
Digital signature: The final document is digitally signed with an AATL-compliant certificate. This ensures that the document cannot be tampered with without invalidating the signature.
Consent: Signers are asked to confirm their intent to sign electronically and informed that they could opt out. This ensures that the signer is aware of the implications of signing electronically and has consented.
Custom terms: Get your signers to agree to a custom set of terms. This can be useful to ensure additional security or that the signer understands the terms of the document.
QES compliance: BoldSign offers fully compliant qualified electronic signatures (QES) that are simple, secure, and legally binding across the EU. QES guarantees that your essential documents are protected with the highest level of e-signature security, giving you peace of mind in your digital transactions. Using BoldSign, you can confidently manage your important documents while ensuring compliance with EU regulations.

Disclaimer: The information on this page is intended to help businesses understand the legal framework of electronic signatures for this particular country.

However, Syncfusion, its officers, directors, stockholders, affiliates, attorneys, accountants, employees, or agents cannot provide legal advice. You should consult your personal attorney regarding your specific legal questions. Laws and regulations change frequently, and this information may not be current or accurate. To the maximum extent permitted by law, Syncfusion provides this material on an “as-is” basis. Syncfusion disclaims and makes no representation or warranty of any kind with respect to this material, express, implied, or statutory, including representations, guarantees, or warranties of merchantability, fitness for a particular purpose, or accuracy.

Syncfusion makes no warranties of any kind, including but not limited to respect to the information or the product, whether express, implied, statutory, or otherwise. To the maximum extent permitted by law, Syncfusion disclaims all conditions, representations, and warranties, whether express, implied, or statutory, with respect to this information without limitation any implied warranty of merchantability, fitness for a particular purpose, accuracy, or currentness of this information.

Syncfusion nor their officers, directors, stockholders, employees, affiliates, attorneys, accountants, or agents shall be liable for indemnification, nor does this create an express or implied, contractual or statutory, equitable or otherwise, under this Agreement. The officers, directors, stockholders, affiliates, attorneys, accountants, or agents will not have any liability in any form.

¹Austrian Federal Act on Electronic Signatures (Signature Act – SigG)- [ERV_2016_1_50.pdf (bka.gv.at)]
²Regulation (EU) No 910/2014 on electronic identification and trust services for electronic transactions in the internal market and repealing Directive 1999/93/EC –[ https://eur-lex.europa.eu/eli/reg/2014/910/oj]
³Ibid as read with Federal Act on Electronic Signatures and Trust Services for Electronic Transactions (Signature and Trust Services Act)- S. 3(2) – [ERV_2016_1_50.pdf (bka.gv.at)]
⁴Regulation (EU) No 910/2014 on electronic identification and trust services for electronic transactions in the internal market and repealing Directive 1999/93/EC – S. 26- https://eur-lex.europa.eu/eli/reg/2014/910/oj
⁵ Ibid. Art. 32
⁶Federal Act on Provisions Facilitating Electronic Communications with Public Bodies (E-Government Act – E-GovG) S. 19 (2) [ERV_2004_1_10.pdf (bka.gv.at)]
⁷ Supreme Administrative Court Act 1985, S.43 (3a) [(ERV_1985_10.pdf (bka.gv.at)]
⁸Ibid, S.74 (1),
⁹Federal Act enacting a Telecommunications Act (Telecommunications Act – TKG 2021) – Art. 170 – [ERV_2021_1_190.pdf (bka.gv.at)]
¹⁰ Regulation (E.U) No 910/2014 of the European Parliament and of the Council, S. 4, Art. 25 [ https://eur-lex.europa.eu/eli/reg/2014/910/oj ]
¹¹Trademark Act, S. 28 [AUSTRIA (wipo.int)]
¹²Federal Act on Electronic Signatures and Trust Services for Electronic Transactions (Signature and Trust Services Act) S. 2 (4) 1[ERV_2016_1_50.pdf (bka.gv.at)]
¹³Federal Act on Electronic Signatures and Trust Services for Electronic Transactions (Signature and Trust Services Act) S. 2 (4) 1 [ERV_2016_1_50.pdf (bka.gv.at)]as read with General Civil Code – Section 886 – [https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetzesnummer=10001622]
¹⁴Federal Act on Electronic Signatures and Trust Services for Electronic Transactions (Signature and Trust Services Act) S. 2 (4) 2 [ERV_2016_1_50.pdf (bka.gv.at)]
¹⁵Ibid
¹⁶Ibid as read with General Civil Code – Section 1346 para, 2 – https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetzesnummer=10001622

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