Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 72

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 72
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 obligations of employer and employee relationships, including 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 employers and the employees. Employers are prohibited from forcing employees to work above certain time
limits, and employers shall pay employees for overtime work in accordance to national regulations. In addition, employee wages shall be
no lower than local standards on minimum wages and must be paid to employees in a timely manner.

Interim Provisions on Labor Dispatch

Pursuant to the InterimProvisions on Labor
Dispatch, or the Labor Dispatch Provisions, promulgated by the Ministry of Human Resources and Social Security on January 24, 2014,
which became effective on March 1, 2014, dispatched workers are entitled to equal pay with full-time employees for equal work. Employers
are allowed to use dispatched workers for temporary, auxiliary or substitutive positions, and the number of dispatched workers may not
exceed 10% of the total number of employees.

Social Insurance and Housing Fund

Pursuant to the Social Insurance Law of the PRC implemented
on July 1, 2011, amended on December 29, 2018 and became effective on the same day, employers are required to provide their employees
in the PRC with welfare benefits covering pension insurance, unemployment insurance, maternity insurance, labor injury insurance and medical
insurance. These payments are made to local administrative authorities. Any employer that fails to make social insurance contributions
may be ordered to rectify the non-compliance and pay the required contributions within a prescribed time limit and be subject to a late
fee. If the employer still fails to rectify the failure to make the relevant contributions within the prescribed time, it may be subject
to a fine ranging from one to three times the amount overdue. In accordance with the Regulations on the Management of Housing Fundwhich was promulgated by the State Council in 1999 and last amended on March 24, 2019 and became effective on the same day, employers
must register at the designated administrative centers and open bank accounts for depositing employees’ housing funds. Employers
and employees are also required to pay and deposit housing funds, which shall be the product of employees’ average monthly salaries
of the previous year multiplied by the contribution rate of the housing provident fund of the employer. Where, in violation of the provisions
of these Regulations, an employer