Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 81

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 4
Chunk 81
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 compliance in material
respects with the relevant laws and regulations in the PRC. In respect of our employment services in Taiwan, Galaxy Payroll (HK) cooperated
with in-country partners during the year ended June 30, 2020. Galaxy HR (TW) began to provide the employment services in Taiwan starting
from July 1, 2020.

Reasons for procuring our employment services

During the years ended June
30, 2025, 2024 and 2023, the reasons for our end-users to engage us for employment services instead of directly employing candidates themselves
mainly include:

  (i)      our employment services take over the role of human resources function in enterprises and cover not only payroll matters but also making the necessary filings when new employees join and existi...  

  (ii)      end-users facing internal headcount restrictions may not be able to hire employees directly and we are able to employ candidates for our end-users as their employer of record to support our end...  
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  (iii)      end-users do not have a branch office at a particular region and therefore do not have an entity to enter into employment contracts with candidates, thus require our employment services; and  

  (iv)      end-users make use of our employment services for short-term contingent labor support. After the contract period, they may decide whether to employ the candidate themselves based on their perfo...  
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Our Directors believe that
our employment services can generally offload the human resources function of our end-users. Our Directors believe that the provision
of our employment services enables our end-users to focus on their core businesses, reduce and control their operating costs and minimize
their administrative burden.

Seconded employees

During the years ended June
30, 2025, 2024 and 2023, our seconded employees were seconded to work in the PRC, Hong Kong, Japan, Taiwan, Macau, Australia and other
Asian countries for our end-users.

We and our in-country partners
have adopted standard forms of employment contracts for our seconded employees. Pursuant to the instructions of our customers, the seconded
employees are seconded to work at premises requested by our end-users. The