Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 195

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 195
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 their respective industries in accordance with certain identification rules and shall promptly notify the identified operators and
the public security department of the State Council of the identification results.

Regulations Relating to Labor and Social Insurance

The Labor Law of the PRC,
effective on January 1, 1995 and subsequently amended on August 27, 2009 and December 29, 2018, the PRC Labor Contract
Law, effective on January 1, 2008 and subsequently amended on December 28, 2012 and the Implementing Regulations of the Employment
Contract Law, effective on September 18, 2008, provide requirements concerning employment contracts between an employer and its
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 paying 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.
The Labor Contract Law and its implementation rules also require compensation to be paid upon certain terminations, which significantly
affects the cost of reducing workforce for employers. In addition, if an employer intends to enforce a non-compete provision in
an employment contract or non-competition agreement with an employee, it has to compensate the employee on a monthly basis during the
term of the restriction period after the termination or expiry of the labor contract. Employers in most cases are also required to provide
severance payment to their employees after their employment relationships are terminated.

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, including bonuses
and allowances, of the employees as specified by the local government from time to time at locations where they operate their businesses
or where they are located. According to the Social Insurance Law, an employer that fails to make social insurance contributions may be
ordered to pay the required contributions within a stipulated deadline and be subject to a late fee. If the employer still fails to rectify
the failure to make social insurance contributions within the stip