Germany, as part of the European Union, recognizes electronic signatures as legally binding for both business and legal transactions. The country was an early adopter of this technology, having introduced legal recognition through its German Signature Law.
With the implementation of the Electronic Identification, Authentication and Trust Services (eIDAS) Regulation in 2016, the legal use of electronic signatures was standardized across all EU member states, including Germany. Under German law, a handwritten signature is not a prerequisite for a contract to be legally binding. A contract becomes valid as soon as two parties, who are legally capable of entering into agreements, reach a mutual understanding.
To support the effective application of the eIDAS Regulation, Germany introduced national legislation known as the Trust Services Act (Vertrauensdienstegesetz or VDG), which came into effect on 29 July 2017. This law is designed to promote and regulate the use of electronic trust services within Germany.
Key national regulations related to electronic signatures are primarily found in the German Civil Code (Bürgerliches Gesetzbuch – BGB). The BGB includes various provisions outlining formal requirements for legal transactions, with particular emphasis on the “written form”. This form is mandatory for certain legal actions, such as terminating a lease agreement, notifying the transfer of rights, or assigning rights tied to a mortgage.
Categories of Electronic Signatures Permitted
The eIDAS Regulation classifies electronic signatures into three distinct types:
- Simple Electronic Signature (SES):
This is any electronic data that is attached to or logically connected with other electronic data and is used by a person to sign (as outlined in Article 3.10 of eIDAS).
- Advanced Electronic Signature (AES):
An AES offers a greater level of security by meeting specific requirements. It must be uniquely linked to the signer, capable of identifying them, and created using signature data under the sole control of the signer. Additionally, it must ensure the integrity of the signed content.
- Qualified Electronic Signature (QES):
A QES is a more secure form of an advanced signature. It is created using a qualified electronic signature creation device and is backed by a qualified digital certificate issued by a trust service provider listed by an EU member state. As per Article 25.2 of eIDAS, a QES is the only type of electronic signature that holds the same legal standing as a handwritten signature throughout the EU.
In Germany, the legal recognition and use of electronic signatures are aligned entirely with the eIDAS framework; German law does not introduce a separate or distinct definition for electronic signatures outside of what is established by eIDAS.
Notable Changes
None.
Documents Suitable for E-Signatures
- HR documents – This includes employment contracts, onboarding paperwork, temporary employment agreements, Non-Disclosure Agreements, and benefits paperwork.
- Commercial agreements – This includes non-disclosure agreements, purchase orders, invoices, service agreements, and sales agreements between two corporate entities.
- Consumer agreements – This includes retail accounts, terms and service agreements, licensing agreements, invoices, and order confirmations.
- Real estate documents – This includes both residential and commercial real estate agreements.
- Certain patents and copyrights
- Software Licensing
- Procurement (except conclusion of installment supply contracts)
Documents Not Suitable for E-signatures
- Property transfers or purchases
- Marriage contracts
- Wills or inheritance contracts
- Employee termination notices.
- Deeds
- Notarized documents.
Disclaimer
The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly, so Flowmono cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, you should consult with a legal practitioner in your area.
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