Company: XHG
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005499
Chunk: 110

Company: XChange TEC.INC
Filing Date: 2025-01-22
Form: 20-F
Item: Item 4
Chunk 110
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 by foreign investors more time-consuming and complex, including
requirements in some instances that the MOFCOM be notified in advance of any change of control transaction in which a foreign investor
takes control of a PRC domestic enterprise.

Regulation relating to Employment and Social Welfare

Labor Protection

The main PRC employment laws and regulations
include the Labor Law of the PRC, as revised on December 29, 2018, the Labor Contract Law of the PRC, or the Labor Contract Law and the
Implementing Regulations of the Employment Contract Law of the PRC.

The Labor Contract Law was promulgated on June
29, 2007, revised on December 28, 2012, and came into force on July 1, 2013. This law governs the establishment of employment relationships
between employers and employees, and the execution, performance, termination of, and the amendment to, employment contracts. The Labor
Contract Law is primarily aimed at regulating employee/employer rights and obligations, including matters with respect to the establishment,
performance and termination of labor contracts. Pursuant to the Labor Contract Law, labor contracts shall be concluded in writing if
labor relationships are to be or have been established between enterprises or institutions and the laborers. Enterprises and institutions
are forbidden to force laborers to work beyond the time limit and employers shall pay laborers for overtime work in accordance with national
regulations. In addition, labor wages shall not be lower than local standards on minimum wages and shall be paid to laborers in a timely
manner. In addition, according to the Labor Contract Law: (i) employees must adhere to regulations in the labor contracts concerning
commercial confidentiality and non-competition; (ii) employees may terminate their employment contracts with their employers if their
employers fail to make social insurance contributions in accordance with the law; and (iii) enterprises and institutions shall establish
and improve their system of workplace safety and sanitation, strictly abide by state rules and standards on workplace safety, educate
laborers in labor safety and sanitation in the PRC.

The Labor Contract Law imposes more
stringent requirements on labor dispatch. According to the Labor Contract Law, (i) it is strongly emphasized that dispatched
contract workers shall be entitled to equal pay for equal work as an employee of an employer; (ii) dispatched contract workers may
only be engaged to perform temporary, auxiliary or substitute works; and (iii) an employer shall strictly control the number of
dispatched contract workers so that