What is Signatory?
A signatory is an individual authorized to sign official documents on behalf of a company or organization. By signing, they act as a representative of the organization in dealings with clients, employees, creditors, and other stakeholders. This role involves signing legally binding documents such as contracts, agreements, bank forms, and other official paperwork.
Different departments may have specific signatories for their operations. For example, a chief accountant may handle financial documents like invoices and payment slips, while an HR manager may sign employment contracts and salary slips. Similarly, operational heads may sign off on purchase orders, quotations, or job orders relevant to their areas.
In essence, a signatory is the legal representative of a company, with their signature serving as a binding confirmation of the organization’s commitment to the documents they authorize.
How HR teams use this term
HR teams usually use Signatory when they write policies, explain employee communication, review payroll or leave records, or keep employee data clean in an HRMS.