Simplified electronic signatures in the context of Labor Code amendments: what you need to know

The most recent revision to the Labor Code, which took effect in October 2023, made major changes to the electronic distribution of papers to employees. We will talk about several sorts of electronic signatures, how they protect data, and how they’re used.

But has the revision to Act No. 262/2006 (hereafter referred to as the Labor Code) improved the conditions for electronic processing of employment documents to the point where they may now be signed using a simple electronic signature? Let’s look into this further.

“Simple” electronic signature features

If you want to know more about electronic identification and trust services for electronic transactions in the internal market (eIDAS), you can read Regulation (EU) No 910/2014. It says that an electronic signature is “data in electronic form that is attached to or logically associated with other data and which is used by the signatory to sign.”

Current legislation distinguishes several types of electronic signatures, including advanced, recognized, qualified, and the aforementioned simple electronic signatures.

Broadly, it can be said that, first and foremost, recognized and qualified electronic signatures provide a very high level of guarantee regarding the signatory’s identification, the data’s integrity, and the signer’s authenticity.

Unfortunately, the same level of assurance cannot be attributed to the simple electronic signature, as it presents the lowest identification requirements for the signer among all types of electronic signatures. Nevertheless, it meets the legal definition of an electronic signature according to the eIDAS Regulation and is considered a valid electronic signature.

Moreover, in practice, the simple electronic signature is the most widely used type across various business sectors—including banking institutions, online stores, and insurance companies—due to its accessibility and ease of use. Unlike advanced or qualified signatures, the simple electronic signature does not require specialized tools for creating signatures or a qualified certificate issued by a verified certification authority (like Czech Post). This simplicity makes it an attractive option for businesses. Additionally, there are numerous private providers available for signing documents with a simple electronic signature (e.g., DocuSign, Singi, DigiSign, etc.). However, the question of whether this type of electronic signature can be used for employment contracts, work completion agreements, or the termination of employment is not straightforward and may depend on specific legal and contractual contexts.

Electronic signatures for important documents
Even if amendments to the Labor Code have eased the conditions needed for electronic delivery, many papers cannot be signed with a simple electronic signature. This primarily pertains to so-called important documents specified in Section 334 of the Labor Code, which legally require a more stringent form of delivery—specifically, “delivery in person.” This comprises documents such as terminations, unexpected employment cessation, termination during probationary periods, and other employment termination-related records, as well as suspensions or dismissals of managerial staff and earnings or salary statements.

For these crucial papers, the law nevertheless requires the use of a recognized electronic signature, which provides greater confidence in the signer’s identity. Concurrently, if a significant document is to be provided to an employee electronically via a network or electronic communication service (e.g., email), the employee must now submit prior written approval for this means of distribution, specifying an email address.

The employee may withdraw this consent at any time in writing and it must be in a separate document (i.e., it cannot be a part of the employment contract). Before giving consent, the employer must also inform the employee in writing about the conditions of document delivery via network or electronic communication services, including the legally established 15-day period during which the document delivery is considered completed.

From the employer’s perspective, it is more practical to deliver the document to the employee’s mailbox, if they have one and are entitled to receive messages with private data. This is because mailbox delivery does not require either special consent from the employee for electronic delivery or the actual affixing of a recognized electronic signature on the document. A document sent from the employer’s mailbox is automatically considered to be signed with a recognized electronic signature.

Other documents

The law also specifically regulates the delivery of individual bilateral legal agreements made between the employer and employee that do not fall under the list of important documents and are specified in the provisions of Section 21 of the Labor Code.

This group includes, for example, employment contracts, agreements on work performance, and agreements on labor activities, including their amendments or agreements on their termination. These bilateral legal agreements can now be concluded using a simple electronic signature, which is undoubtedly an advantage. In such cases, the employer is legally obliged to subsequently send a copy of these documents to the employee’s email address.

If the aforementioned documents are concluded electronically, the employee has the right to withdraw, which is another feature associated with the electronic conclusion of these documents. According to paragraph 2 of Article 21 of the Labor Code, an employee has the right to rescind a relevant electronic contract if they have not yet started carrying out their obligations under it (for example, if they have not personally started working at the designated workplace in accordance with the employment contract or agreement on labor activity). This right exists no later than seven days after the date the employer delivers the document to the employee’s address. The statement of contract termination must be made in writing and can also be transmitted to the employer electronically.

A simple electronic signature can be deemed invalid

The amendments to the Labor Code have introduced several changes that provide employers and employees with greater flexibility in signing contracts and other documents electronically. While a simple electronic signature still cannot be used for all types of documents in employment relationships (for example, it cannot be used to sign a termination notice), there is already a broad range of documents where it can be used (for example, for signing an employment contract or a hiring agreement), which is undoubtedly a positive trend.

However, it is essential to note that a simple electronic signature provides a relatively low level of assurance regarding the signer’s identity, which could cause significant harm to the parties in the event of a legal dispute. Therefore, if the parties have the opportunity to conclude a document using a more reliable form of electronic signature (e.g., a recognized electronic signature), it is highly recommended to do so.

Source

https://www.podnikatel.cz/clanky/prosty-elektronicky-podpis-ve-svetle-novely-zakoniku-prace/