Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 111

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 4
Chunk 111
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 they do not exceed certain percentage of total number of employees and the specific percentage
shall be prescribed by the Ministry of Human Resources and Social Security. Under the law, “temporary work” means a
position with a term of less than six months; “auxiliary work” means a non-core business position that provides services
for the core business of the employer; and “substitute work” means a position that can be temporarily replaced with a
dispatched contract worker for the period that a regular employee is away from work for vacation, study or other reasons. According
to the Interim Provisions on Labor Dispatch promulgated by the Ministry of Human Resources and Social Security on January 24, 2014,
which became effective on March 1, 2014, (i) the number of dispatched contract workers hired by an employer should not exceed 10% of
the total number of its employees (including both directly hired employees and dispatched contract workers); and (ii) in the case
that the number of dispatched contract workers exceeds 10% of the total number of its employees at the time when the Interim
Provisions on Labor Dispatch became effective, the employer must formulate a plan to reduce the number of its dispatched contract
workers to comply with the aforesaid cap requirement prior to March 1, 2016. In addition, such plan shall be filed with the local
administrative authority of human resources and social security. Nevertheless, the Interim Provisions on Labor Dispatch do not
invalidate the labor contracts and dispatch agreements entered into prior to December 28, 2012 and such labor contracts and dispatch
agreements may continue to be performed until their respective dates of expiration. The employer may also not hire any new
dispatched contract worker before the number of its dispatched contract workers is reduced to below 10% of the total number of its
employees. In case of violation, the labor administrative department shall order rectification within a specified period of time; if
the situation is not rectified within the specified period, a fine from RMB 5,000 to RMB 10,000 for each person shall be imposed,
and the staffing company’s business license shall be revoked. If a placed worker suffers any harm or loss caused by the
receiving entity, the staffing company and the receiving entity shall be jointly and severally liable for damages.

Social Insurance and Housing Fund

As required under the Regulation of Insurance
for Labor Injury implemented on January 1, 2004 and