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Signing documents electronically is now a widely accepted and legally binding method for entering into agreements, even in today’s digital age. Since the shifts during the COVID‐19 era, both signing and witnessing of documents have transitioned to digital platforms, ensuring secure and compliant transactions in 2025.
For a witness’ signature to be valid, it must adhere to specific guidelines under the Electronic Transactions Act 2000 (NSW). When witnessing digitally, the following key factors must be in place:
- The signing must be conducted through a reliable audio visual link (e.g., Zoom or Microsoft Teams)
- The witness must clearly see the signee apply their signature in real time
- A declaration confirming that all legal obligations were met during the signing must be provided by the witness
Utilising e-signatures offers numerous benefits for businesses. By choosing the right medium and strictly following updated guidelines, electronic witnessing enhances efficiency, reduces administrative burdens, and offers unrivalled convenience—a vital advantage for modern business operations in 2025. For more insights on managing your digital documentation securely, check out our Online Business Privacy guide.
Who Can Witness A Document?
Generally speaking, a witness is someone who:
- Is over the age of 18
- Has a personal or professional relationship that allows them to verify the signee’s identity
- Is not a party to the agreement
- Possesses the capacity to objectively observe and confirm the signing process
Not every document mandates the same witnessing requirements; whether someone can witness a document depends largely on its nature. For tailored advice, refer to our article on what makes a contract legally binding.
Traditionally, witnessing a document required all parties to be physically present. The witness would observe the signee add their signature to the document, then sign it themselves to confirm their presence.
The role of a witness is crucial in establishing the validity of a document. Their signature confirms that the document was signed without fraud, mistaken identity, duress or other unlawful influences. Increasingly in 2025, businesses are embracing electronic signatures for their ease and reliability.
How Do You Witness Documents Electronically?
Recent updates to NSW legislation have removed the requirement for physical presence when witnessing documents. Initially introduced as an emergency measure during COVID‐19 restrictions, electronic witnessing has now become an integral and permanent aspect of modern business practices.
The current requirements stipulate that the signature must be witnessed via a robust audio visual link such as Zoom or Microsoft Teams. The witness must be able to listen and interact with the signee while clearly observing the signing process, thereby closely mirroring an in-person experience.
This process applies equally to both traditional ‘wet’ signatures and electronic signatures. Should additional verification steps be required—such as identity confirmation—the witness can perform these over the same audio visual link.
After witnessing the signature, the witness will sign their portion of the document either by emailing a scanned copy or, if using an online signature tool, by adding their signature immediately. In addition, the witness must provide a statement confirming that the signing was conducted in accordance with clause 14G of the Electronic Transactions Act 2000 (NSW).
It is essential that all these conditions are fully satisfied for the electronic witnessing to be deemed valid.
What Is The Electronic Transactions Act?
The Electronic Transactions Act 2000 (NSW) remains the cornerstone legislation governing digital transactions in NSW. Part 2B provides comprehensive guidance on remote witnessing, ensuring that these processes remain robust and secure in 2025.
Specifically, the Act requires that the witness be satisfied the document they sign is identical to the one executed by the signee, without restricting the medium used for obtaining signatures.
Furthermore, if a witness is not convinced by the signing process—for instance, if they did not adequately observe the signee’s actions—they have the right to withhold their signature, potentially rendering the document invalid. For a deeper dive into such issues, see our guide on contract legal requirements.
What Does This Mean For Your Business?
In 2025, as remote work and digital processes become the norm, business documents like Employment Contracts, Shareholders Agreements and Contractors Agreements can be executed entirely online. This modern approach eliminates geographical and time constraints, significantly reducing processing times and streamlining administrative workflows.
Adopting e-signatures not only accelerates your business processes but also enhances security and record-keeping by utilising secure, cloud-based storage systems. This digital shift supports a more agile and environmentally sustainable business model. For additional tips on optimising your legal processes, explore our Legal Documents for Business article.
Overall, the flexibility and convenience offered by digital signatures allow you to focus on your core operations, confident that your legal documents are both compliant and securely managed.
Sprintlaw’s E-Signature Tool
If you’re in the market for an e-signature solution, look no further. Through ongoing client feedback, we’ve developed our very own E-Signature Tool available exclusively via our Sprintlaw Membership. This tool seamlessly integrates all your critical contracts and documents into one secure online portal.
What does this mean for you? By using our E-Signature Tool, you can effortlessly send, sign, and store your key documents electronically, ensuring that all parties have immediate access to the final signed agreement. This reliable method helps streamline your legal processes and supports effective document management.
Moreover, our tool is designed to integrate with your broader business systems. Whether you need to manage employment contracts or maintain proper records of shareholders agreements, our solution centralises your documentation, providing a clear audit trail and improved compliance.
Next Steps
Witnessing a document online involves several key elements:
- A reliable audio visual link
- Mutual agreement on remote witnessing
- The witness must clearly observe the signee adding their signature
- A formal statement of declaration affirming all legal requirements have been met
Embracing these legislative updates can transform your business operations, making document execution faster, more secure, and entirely hassle-free. If you’re interested in our E-Signature Tool or need further guidance on setting up your digital legal frameworks, our legal consultants are here to help.
Our legal experts are happy to answer any questions regarding the use of e-signatures for your business, the appropriate type of witness required, and any related concerns. Get in touch with our team at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligation chat.
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