Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 105

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 4
Chunk 105
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 labor contracts with full-time
employees. If an employer fails to enter into a written employment contract with an employee within one year from the date on which the
employment relationship is established, the employer must rectify the situation by entering into a written employment contract with the
employee and pay the employee twice the employee’s salary for the period from the day following the lapse of one month from the
date of establishment of the employment relationship to the day prior to the execution of the written employment contract. All employers
must comply with local minimum wage standards. Violation of the Labor Law and the Labor Contract Law may result in the imposition of fines
and other administrative and criminal liability in the case of serious violation.

On December 28, 2012, the
PRC Labor Contract Law was amended with effect on July 1, 2013 to impose more stringent requirements on labor dispatch. Under such law,
dispatched workers are entitled to pay equal to that of full-time employees for equal work, but the number of dispatched workers that
an employer hires may not exceed a certain percentage of its total number of employees as determined by the labor administrative department
of the State Council. Additionally, dispatched workers are only permitted to engage in temporary, auxiliary or substitute work. According
to the Interim Provisions on Labor Dispatching promulgated by the Ministry of Human Resources and Social Security on January 24, 2014,
which became effective on March 1, 2014, the number of dispatched workers hired by an employer shall not exceed 10% of the total number
of its employees (including both directly hired employees and dispatched workers). The Interim Provisions on Labor Dispatching require
employers which are not in compliance with the PRC Labor Contract Law in this regard to reduce the number of its dispatched workers to
below 10% of the total number of its employees prior to March 1, 2016. In addition, an employer is not permitted to hire any new dispatched
worker until the number of its dispatched workers has been reduced to below 10% of the total number of its employees.

Enterprises in China are required
by PRC laws and regulations to participate in certain employee benefit plans, including social insurance funds, namely a pension plan,
a medical insurance plan, an unemployment insurance plan, a work-related injury insurance plan and a maternity insurance plan, and a housing
provident fund, and contribute to the plans or funds in amounts equal to certain percentages of salaries of the employees as specified