HR News: 26 Jan, 2024

1.

GST not liable on recoveries from staff for canteen services: AAR

The Authority for Advance Ruling Andhra Pradesh ruled in favour of the applicant, stating that GST was not liable on recoveries from employees for canteen services. Brandix Apparel India sought clarification from the GST Authority for Advance Ruling (AAR) Andhra Pradesh concerning the canteen facility provided to employees, managed by a third-party service provider. The provider charged Rs 1,538.25 per employee per month, with Rs 578 collected from employees by the applicant. The applicant argued this was in compliance with the Factories Act, 1948, which mandates canteen facilities for a workforce exceeding 250. The applicant, engaged in apparel manufacture, contended that it didn’t directly provide canteen services to employees; the third-party did Referring to Section 7 of the CGST Act, the applicant argued that as it was not in the business of providing canteen services, the employee recoveries weren’t a supply. The GST Policy Wing Circular stated that perquisites provided by employers to employees, in lieu of services, aren’t subject to GST. Given the mandatory nature of the canteen facility under the Factories Act, it was asserted that even in the employee-employer transaction, GST wasn’t applicable.

 

2.

Major job cuts at Macy’s

The American chain of departmental stores is reducing its workforce by 3.5%. In response to sluggish sales, Macy’s, an American departmental store chain, has announced the reduction of its workforce by 3.5 per cent. The move comes as a part of its broader cost-cutting initiative and will impact about 2,350 positions across both corporate offices and stores. Additionally, it has decided to close five of its malls as well. The stores to be closed early this year itself are situated in Arlington, Virginia; San Leandro, California; Lihue, Hawaii; Simi Valley, California; and Tallahassee, Florida. In a statement to the media, Macy’s explained that the layoffs are a challenging but necessary step to streamline the company. This is part of its efforts to implement a new strategy to adapt to evolving consumer trends and market dynamics. Affected employees were informed about the layoffs on Thursday, 18 January, 2024, and the last working day for those impacted will be 26 January 2024.

 

3.

Meta’s graphic content moderator to get mental-health support

The mental health of a content moderator reviewing content for Meta (formerly Facebook), who had to go through disturbing material, including beheadings, was seriously affected. On 19 January, 2024, news reports revealed that the mental well-being of a former content moderator, who had the job of reviewing disturbing material for Facebook, was seriously impacted. The content the employee had to check included beheadings. In a positive turn, the Spanish Court supported the employee, and the Barcelona Court also agreed with the decision. The court acknowledged that the mental health of the worker was indeed affected due to their work that involved dealing with the graphic content. The court, therefore, ruled that the said worker should be given extra pay for the sick leave availed. The said employee worked for a company called CCC Barcelona Digital Services, which supports another firm called Telus International. The latter handles the work of going through and assessing what people post on Meta (formerly known as Facebook).