- within Employment and HR topic(s)
- with Senior Company Executives, HR and Finance and Tax Executives
- with readers working within the Banking & Credit, Technology and Pharmaceuticals & BioTech industries
INTRODUCTION
Trade agreements are not just about lowering tariffs; they shape how countries trade, invest and cooperate across sectors. Until recently, however, India–United Kingdom ("UK") employment and business relations were shaped by fragmented bilateral arrangements and domestic regulations. Businesses had to contend with high visa costs, lengthy work permit processes, limited recognition of qualifications and even dual social security contributions on temporary assignments all of which raised costs and restricted mobility. Professionals also struggled with complex immigration hurdles and uneven labour protections, leaving gaps in fair treatment. The India–UK1 Comprehensive Economic and Trade Agreement ("CETA"), signed on 24 July 2025, reflects a decisive shift from these challenges to a broader vision. Billed as one of the most ambitious deals India has signed with a developed economy, the CETA goes beyond goods and services to include provisions on labour standards, professional mobility, social security and recognition of qualifications. For businesses, it promises easier access to markets and clearer investment protections. For workers and professionals, it opens up mobility opportunities, reduces contributions during temporary assignments and ensures stronger safeguards on fair treatment and workplace rights. While consumers are expected to be benefit from greater competition and wider choice.
At present, however, the agreement is not yet in force. Both Governments are working to complete their domestic approval and ratification procedures before its provisions become legally binding2. It seems to be politically sealed but still awaiting the legal steps needed for implementation. Building on these developments, this article will explore the key elements of the CETA, focusing on how it addresses employment standard, professional mobility, social security coordination and recognition of professional safeguards.
ARCHITECTURE OF THE DEAL
CETA is legally structured as a modern treaty that combines traditional trade obligations with current contemporary provisions. Its legal foundation draws from both countries' domestic laws as well as international commitments3. It allows each country to take necessary measures to protect essential security interests, including restricting access to information whose disclosure would contravene law, impede law enforcement, harm the public interest, prejudice legitimate commercial interests, safeguard the balance of payments and maintain the confidentiality of information provided in confidence by the other country4. By embedding these norms, it ensures that trade, investment and workforce movement operate within a mutually recognized legal framework, providing predictability and enforceability for both Governments and private stakeholders.
KEY COMMITMENTS IMPACTING HIRING DECISIONS
CETA embeds several safeguards that enhance worker protections, support fair and responsible employment practices, facilitate temporary professional mobility and reduce barriers for skilled employees, directly impacting the world of work. The safeguards are as outlined below:
- Employment Standards: CETA places a strong emphasis on labour protections, reflecting both parties' commitment to uphold international standards. The labour chapter enshrines key principles including freedom of association, prohibition of forced and child labour, non-discrimination including gender equality and effective enforcement of labour laws5. It also includes a non-derogation clause, preventing selective application of labour rules to gain a trade advantage and encourages responsible business conduct across sectors. Beyond these commitments, the CETA establishes mechanisms for cooperation and implementation, aimed at promoting decent working conditions and responsible business practices in line with the International Labour Organization ("ILO") obligations of both parties. These provisions are structured to operate the treaty while ensuring a practical framework for monitoring, compliance and mutual support in advancing labour standards. As a drawback, disputes related to employment standards are not however eligible for dispute settlement mechanism under CETA6.
- Mobility: CETA also sets out clear rules for
professional mobility, creating opportunities for employees while
enabling businesses to access skilled talent across borders. It
preserves existing short-term visa categories covering business
visitors, intra-corporate transferees (including graduate
trainees), investors, contractual service suppliers and independent
professionals while leaving the UK's control over sponsorship
and thresholds unchanged7. For intra-corporate
transferees, the treaty guarantees ninety days to three-year
posting, providing stability and predictability for assignments.
Importantly, these provisions remain limited to temporary stays and
do not create settlement pathways, maintaining host-country labour
market safeguards8.
In addition, the deal introduces targeted mobility for niche sectors through an annual collective quota of 1,800 visas for Indian chefs de cuisine, yoga teachers and classical musicians, alongside expanded access for independent professionals and service suppliers in select areas9. For workers, this framework ensures broader international exposure and recognition of their expertise; for employers, it improves access to specialized skills while supporting workforce planning.
- Social Security Contributions: CETA addresses
a significant challenge for professionals and employers on overseas
assignments – i.e. the burden of dual social security
contributions. To resolve this, parties have established a
reciprocal framework under the Double Contributions Convention
("DCC"), ensuring that employees
temporarily assigned between the two countries are liable to pay
social security contributions in only one country at a
time10. DCC allows Indian professionals on short-term
assignments in the UK to continue contributing solely to
India's Employees' Provident Fund
("EPF")11, while UK
professionals in India exempted from their employers from paying to
the EPF in India. The DCC provides an exemption of up to 36 months
for eligible Indian secondees and their employers.
For professionals, the DCC means that an assignment in abroad12 no longer comes with the hidden cost of parallel contributions at home and abroad. For employers, it lowers the expense of seconding staff and makes global placements more viable. This is expected to benefit thousands of professionals every year, especially in sectors such as IT, consultancy, finance and engineering, where short- to medium-term international postings are common. Importantly, while it prevents double contributions, the DCC does not alter eligibility for any benefits or the immigration health surcharge, thereby maintaining the integrity of the host country's welfare system13.
- Mutual Recognition of Professional
Qualifications ("MRAs"):
Building on mobility, CETA also commits both Governments to
negotiate MRAs in key professional fields such as accountancy,
architecture and health-related disciplines14. For
professionals, MRAs directly tackle one of the biggest hurdles in
cross-border work having to requalify or undergo duplicative
accreditation processes. By reducing these barriers, Indian
professionals will be able to practice in UK with smoother
recognition of their qualifications, while UK professionals will
enjoy reciprocal advantages in India.
From an employment perspective, this measure opens new avenues of work for skilled Indian professionals, particularly in high-demand service sectors where expertise is already internationally portable. Employers in both countries also stand to benefit: companies gain access to a larger pool of talent whose qualifications are formally recognized, cutting down on time and costs linked to certification and compliance. The commitment includes clear timelines of 12 months after CETA enters into force for finalising MRAs, signalling a structured pathway rather than an open-ended promise15.
It also facilitates access to each other's Government procurement markets, creating new employment opportunities16. UK and Indian firms can expand operations, hire skilled professionals and deploy teams for projects, with local production thresholds further supporting workforce engagement and cross-border career growth17. These measures are expected to enhance the employability in abroad and strengthen the competitiveness of businesses reliant on specialised skill sets.
CONCLUSION
The CETA is set to transform the labour and employment landscape between the two countries. By facilitating above mentioned commitments, CETA removes key barriers that previously limited international assignments and cross-border employment opportunities. This framework enhances protections for workers, provides employers with access to a skilled and mobile workforce and encourages responsible business practices.
For example, Indian professionals can now undertake short- to medium-term assignments in the UK, including roles such as intra-corporate transfers, contractual service placements and independent professional work, without facing duplicative administrative or financial hurdles. Conversely, UK professionals working in India will benefit through streamlined short-term work arrangements, simplified recognition of qualifications via mutual recognition agreements and coordinated social security contributions that prevent double payments. While initiatives such as allowing mutual recognition of qualifications in key sectors like healthcare, accounting and architecture, enabling smoother professional transitions and career growth.
While CETA opens opportunities for mobility, it does not change existing regulatory frameworks. In UK, the points-based immigration system, salary thresholds, sponsorship rules and visa fees remain and professionals continue to pay the Immigration Health Surcharge and comply with visa conditions. In India, professionals and employers remain subject to foreign exchange rules, employment clearances, tax obligations and other statutory compliances. In short, CETA eases barriers to recognition, mobility and temporary social security relief, but does not exempt parties from domestic regulations in either country.
Through this, employees can expect greater ease in international placements, fair treatment under social security arrangements and recognition of their professional expertise. Employers, in turn, will benefit from expanded talent pools, simplified compliance and more flexible staffing solutions. CETA has opened doors to more dynamic, equitable and mutually beneficial opportunities across India and UK.
Footnotes
1 For the purpose of this article, India and UK are collectively referred as the "Parties".
2 Please refer https://commonslibrary.parliament.uk/research-briefings/cbp-10258/?utm_source
3 Article 20.2, Chapter 20, CETA.
4 Chapter 28, CETA.
5 Chapter 20, CETA.
6 Article 20.16, Chapter 20, CETA.
8 Article 10.2, Chapter, CETA
10 Please refer https://assets.publishing.service.gov.uk/media/6881ec929fab8e2e86160f9f/uk_side_letter_agreeing_negotiate_double_contributions_convention.pdf
11 Please refer https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId=3&NoteId=154945&utm
12 For the purposes of this article, 'abroad' refers to the other country party to the agreement; that is, when referring to Indian professionals, 'abroad' means the UK, and when referring to UK professionals, it means India.
14 Article 8A.4, Annex 8A, CETA.
15 Please refer https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId=3&NoteId=154945&utm
16 Please refer https://www.fortuneindia.com/economy/india-uk-ceta-what-the-government-procurement-chapter-means-for-indian-businesses/125215
17 Article 15.4(8), Chapter 15, CETA.
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.
