ARTICLE
12 August 2025

Digital Signatures In Employment Contracts

KL
Herbert Smith Freehills Kramer LLP

Contributor

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As digital transformation reshapes workplace practices across Asia, digital signatures are becoming an increasingly important tool for employers aiming to streamline HR processes and enhance operational efficiency.
Worldwide Employment and HR

As digital transformation reshapes workplace practices across Asia, digital signatures are becoming an increasingly important tool for employers aiming to streamline HR processes and enhance operational efficiency. Although electronic execution of employment documents is gaining traction, the legal recognition and regulatory treatment of digital signatures vary significantly across jurisdictions in Asia. This article provides a comparative overview of the key considerations surrounding the use of digital signatures in employment contracts across Singapore, Malaysia and the Philippines.

Questions

Singapore

Malaysia

Philippines

Are physical signatures required for employment contracts/letters of offers?

Not required.

Note that for employers, the individual signing the document must be authorised to sign on the employer's behalf.

Not required.

Note that for employers, the individual signing the document must be authorised to sign on the employer's behalf.

Not required.

Note that for employers, the individual signing the document must be authorised to sign on the employer's behalf.

Is a photo or scanned image of a physical signature an accepted form of digital signature?

A photo or scanned image of a physical signature is acceptable.

Electronic signatures (such as a photo or scanned image of a physical signature) are recognised under the Electronic Transactions Act 2010, and accorded the same legal status as a "wet ink" signature, provided that the following requirements are met:

  1. The method of signature used must be able to identify the person signing and indicate that person's intention in respect of the information contained in the electronic record.
  2. The method of signature used must be:
  • as reliable as appropriate for the purpose for which the electronic record was generated or communicated in light of all circumstances, including any relevant agreement; or
  • proven to fulfill the functions described in (1) above, by itself or together with further evidence.

A photo or scanned image of a physical signature is acceptable.

Electronic signatures (such as a photo or scanned image of a physical signature) are recognised under the Electronic Commerce Act 2006 as legally binding, provided that the following requirements are met:

  1. that the signature is attached to, or logically associated with, an electronic message;
  2. the signer and their approval of the related information can be adequately identified; and
  3. the signature is as reliable as is appropriate, given the purpose and circumstances for which the signature is required. To be considered 'reliable', an electronic signature must meet the following requirements:
  • the means of creating the electronic signature is linked to, and under the control of, that person only;
  • any alteration made to the electronic signature after signing is detectable; and
  • any alteration made to that document after signing is detectable.

Note that the Malaysian Inland Revenue Board recently announced on 6 June 2025 the mandatory stamping of employment contracts (see our article here for further details).

Although there is no difference in the treatment of stamping of contracts with digital/physical signatures, employers should ensure that the date of signing declared in the contract is accurately reflect and consistent with any electronic timestamp captured by the digital signature.

A photo or scanned image of a physical signature is acceptable.

Under Electronic Commerce Act 2000 (ECA), an "electronic signature" refers to any distinctive mark, characteristic and/or sound in electronic form, representing the identity of a person and attached to or logically associated with the electronic document or any methodology or procedures employed or adopted by a person and executed or adopted by such person with the intention of authenticating or approving an electronic data message or electronic document.

Electronic signatures (such as a photo or scanned image of a physical signature) are recognised under the Electronic Commerce Act 2000 and accorded the same legal status as a "wet ink" signature, provided that a prescribed procedure, not alterable by the parties interested in the electronic document existed, under which:

  1. a method is used to identify the party sought to be bound and to indicate said party's access to the electronic document necessary for his consent or approval through the electronic signature;
  2. said method is reliable and appropriate for the purpose for which the electronic document was generated or communicated, in the light of all circumstances, including any relevant agreement;
  3. it is necessary for the party sought to be bound, in order to proceed further with the transaction, to have executed or provided the electronic signature; and
  4. the other party is authorised and enabled to verify the electronic signature and to make the decision to proceed with the transaction authenticated by the same.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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