Legality of eSignatures in Czech Republic
Background
Electronic signatures have transformed the way documents are verified, streamlining the process of concluding agreements both within the Czech Republic and globally. These digital mechanisms facilitate the prompt and environmentally friendly execution of signatures, cutting down on paper consumption and expediting deal-making processes. Nonetheless, it is essential to comprehend the critical factors involved when integrating electronic signatures within the Czech Republic context.
Individuals and organizations must opt for an eSignature system that is compliant with Czech Republic legislation, especially the Electronic Identification and Trust Services Regulations. This act equates the legal validity of electronic signatures with that of traditional handwritten signatures. It is also important to note that certain documents may still require ink signatures, and legal requirements can vary by region; therefore, seeking legal advice is recommended.
Ensuring the security of the eSignature process is paramount. The chosen platform should offer robust security measures, including data encryption, user authentication protocols, and comprehensive audit trails to prevent unauthorized access and uphold the document’s integrity. Platforms such as BoldSign are designed to provide these security assurances, thereby aligning with compliance and security standards.
In summary, although electronic signatures offer significant advantages and are widely accepted, adherence to legal frameworks, prioritization of security, and choosing a user-friendly platform are essential for their successful implementation in the Czech Republic.
What is an eSignature
In accordance with the rules pertaining to electronic signatures in the Czech Republic, an electronic signature is defined as data in an electronic format that is connected to, integrated with, or logically linked to other electronic data and is used to verify the identity of the supposed sender. Such signatures are deemed legally enforceable. For the majority of documents, the signatures must be reliably linked to the person signing and safeguarded against alterations or fraudulent activities. Fulfilling these conditions ensures that electronic signatures are considered as legally valid as their handwritten counterparts.
Overview of eSignature regulations in the Czech Republic
Operations entailing the use of electronic signatures within the Czech Republic are regulated by the:
- Act on Certain Services of the Information Society and Amendments to Certain Acts (Act on Certain Services of the Information Society) 1
- Act No. 297 of 2016 on trust services for electronic transactions 2
- Electronic Identification and Trust Services Regulation [eIDAS] 3.
- E-Commerce Directive [2000/31/EC]4
As a rule, the regulation deems the use of electronic signatures legal in the completion of transactions. eSignatures under the regulation are categorized into three categories:
- Standard (simple) electronic signature
- Advanced electronic signature
- Qualified electronic signature
A standard electronic signature is defined to be an array of data in an electronic form, included, attached to, or logically associated with other data and serves as a method of authentication of these data and identification of a signatory.
An advanced electronic signature is a standard electronic signature that meets the requirements set out in Article 26. It decrees that an advanced electronic signature must be:
- Uniquely linked to the person.
- The use and incorporation remain in their sole control.
- Able to identify the person using the technological process.
- Easy to track down any alterations made after signing.
Uniquely linked to a person
A secure electronic signature must be uniquely connected to the person using it. The signature must be uniquely made with methods that only the signer has access to, like a private key and confidential information, to verify their identity.
The use and incorporation 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 unauthorized signature forgery.
Able to identify the person using the technological process
The process used to create the signature must be capable of identifying the person signing. This may include the use of a biometric signature, personal identification number (PIN), email address, or company registration number.
Easy to 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 place of signature.
Qualified electronic signature
This is an advanced electronic signature generated using a certified device for creating electronic signatures. It relies on an accredited certificate specific to electronic signatures.
Article 325 sets out a validation set of standards to be met for a qualified eSignature. These are:
- A 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 the validity standards of an advanced eSignature.
Summary Analysis
| 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 |
| Validity is dependent on evidentiary weight across jurisdictions. |
| Qualified Electronic Signature |
|
|
Trusted list (Trust Service Providers)
Subject to Article 22 of the eIDAS6, the Communications Regulation Commission (CRC) reserves the duty and obligation to establish, maintain, and publish a list of trust service providers. The Trusted List maintains records of all accredited trust service providers operating within the Czech Republic along with the trust services they offer. Upon request, unaccredited trust service providers may also be included in the Trusted List.
The active accredited trust service providers are7
- eIdentity a.s.
- First certification authority, a.s.
- Komerční banka, a.s.
- SEFIRA spol. s r.o.
- Software602 a.s.
- State trust services
- TECHNISERV IT, spol. s r.o.
- The Czech Post, s.p.
The scope and limitations of e-signature transactions
Electronic signature validity varies with document types, making them suitable for some transactions, but not others. Below is a detailed examination and a summary table of such 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
- Software license agreements
- Insurance industry
- Educational field, etc.
Exempted transactions
Even though the eIDAS does not expressly provide any transactions excluded from being completed by electronic signature, a collective effort of the states saw the establishment of the E-Commerce Directive [2000/31/E.C.]8. The Czech Republic lacks an expression of the nature of transactions exempted from electronic completion, thereby leaving the Directive as a default decree adopted in its e-commerce law9.
The Directive gives member states a list of transactions that may be excluded from the electronic execution model. This, therefore, allows each member to choose the transactions that may be exempted from using an electronic signature. These transactions are10:
- Field of taxation
- Activities of notaries or equivalent professions to the extent that they involve a direct and specific connection with the exercise of public authority.
- Transactions relating to agreements or practices governed by Cartel law.
- Gambling activities involve wagering a stake with monetary value in games of chance, including lotteries and betting transactions.
- The representation of a client and the defense of his interests before the courts.
Summary of the scope of limitations
| Permissible Transactions | Exempted Transactions |
|---|---|
|
|
To ensure the authenticity of an eSignature, it is advisable to follow these best practices while also complying with all applicable legal requirements:
- Ascertain the identity of the signatory and, for transactions involving companies, verify that the individual is duly empowered to bind the corporation with their signature.
- Secure explicit agreement from the signatory, which may be incorporated in the contract or a separate consent form, recognizing their intention to use the specified electronic signature method for the document.
- Protect the document from any changes after the electronic signature has been affixed.
- Keep a comprehensive log of the signing process, recording each step of the individual signing.
Summary of the scope of limitations
The following elements of compliance available within BoldSign can be used to comply with the Czech Republic 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 helps ensure 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 an additional layer of security to the signing process.
- Audit trail: The IP address of the signer along with timestamps for all major events in the signing process are recorded in an audit trail. This provides a record of who signed the document, when they signed it, and from where they signed it.
- Digital signature: The final document is digitally signed with an AATLcompliant 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 are also informed that they can opt out. This helps ensure that the signer is aware of the implications of signing electronically and that they have given their consent to do so.
- Custom terms: Getting 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: Information on this page is intended to help businesses understand the legal framework of electronic signatures for this country.
However, Syncfusion’s 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 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.
1 Act No. 480 of 2004 on Certain Services of the Information Society and on Amendments to Certain Acts (Act on Certain Services of the Information Society)
2 Act No. 297 of 2016 on trust services for electronic transactions
3 Regulation (EU) No 910/2014 of the European Parliament and of the Council of 23 July 2014 on electronic identification and trust services for electronic transactions in the internal market and repealing Directive 1999/93/EC
4 Directive 2000/31/EC of the European Parliament and of the Council of 8 June 2000 on certain legal aspects of information society services, in particular electronic commerce, in the Internal Market (‘Directive on electronic commerce’)
5 Regulation (EU) No 910/2014 on electronic identification and trust services for electronic transactions in the internal market and repealing Directive 1999/93/EC – Art. 32
6 Regulation (EU) No 910/2014 of the European Parliament and of the Council of 23 July 2014 on electronic identification and trust services for electronic transactions in the internal market and repealing Directive 1999/93/EC. Art 22
7 European Commission (eIDAS Dashboard) “Trusted List Czech Republic – Trust Service Provider” Accessed on 23rd April 2024
8 Directive 2000/31/E.C. of the European Parliament and of the Council of 8 June 2000 on certain legal aspects of information society services, in particular electronic commerce, in the Internal Market (‘Directive on electronic commerce)
9 Act relating to certain aspects of electronic commerce and other information society services (Electronic Commerce Act)
10 Ibid (N.13) Art 1(5) as read with Ibid (N.14) S.2
Built to scale with your business
Close deals faster, cut costs, and stay compliant. From startups to global enterprises, thousands trust BoldSign to simplify document signing.
Years in business
Customers
Countries
Built-in features
Why our customers love us
The true measure of our impact lies in the stories shared by our valued partners.
Google Integration, 25 free sends, dashboard, Signature font options, App is very responsive / fast, Emails between sender and signer are good, Audit trail is very helpful, No account needed for signer is great, Mobile experience is good for signer.
Jeremy Kadlec
Edgewood Solutions
Switch to BoldSign already! It's intuitive to use and affordable for small businesses. I never have to worry about the status of a document because with BoldSign I know. Plus, they let you program the frequency of reminders signatories receive. I'm so glad to have found it!
Sarah Dillard
Kaleidoscope
We’re using BoldSign successfully in our b2b SaaS platform - as it’s embedded to allow seasonal farm workers and their agribusiness employers to e-sign their employment onboarding documents for the first time. It’s part of the total solution saving the workers and HR managers 50% more time compared to their traditional pen/paper manual process.
Scott Prince
Croft
Sign up for your free trial today!
30-day free trial- No credit card required
- 30-day free trial
- No credit card required
