Terms & Conditions on Social Insurance Compliance

Party A: DEIL GROUP CO., LTD. (DEIL CHINA GROUP)
Party B: The Directors of DEIL GROUP CO., LTD. and specifically those holding a work visa sponsored by the company.

1. Overview and Obligation

1.1. In accordance with the laws of the People's Republic of China and local municipal regulations, it is a mandatory legal requirement for all employers, including DEIL GROUP CO., LTD., to enroll their employees in the national social insurance system.
1.2. As a director holding a DEIL-sponsored work visa, you are classified as an employee for the purposes of social insurance contributions.
1.3. Both Party A (Employer) and Party B (Employee/Director) are legally obligated to contribute to the social insurance scheme.

2. Implications of Failure to Pay Social Insurance in Yiwu City

Failure to maintain contributions to the social insurance scheme may result in severe consequences for the individual, as enforced by the local Yiwu authorities. These implications include, but are not limited to:

2.1. Administrative Penalties and Legal Consequences:
2.1.1. Accrual of late payment fines and penalties as stipulated by the Yiwu Human Resources and Social Security Bureau.
2.1.2. Legal action may be taken against both the company and the individual for non-compliance with national law.

2.2. Immigration and Visa Repercussions:
2.2.1. Inability to Transfer Work Visa: A failure to pay social insurance will likely prevent the successful transfer of your work permit and residence permit to any other company in China in the future.
2.2.2. Blacklisting: Individuals may be flagged within the government's system, potentially leading to inclusion on an immigration watchlist or blacklist, which can hinder any future visa applications for China.
2.2.3. Impact on Future Visa Applications: Any application for a new Chinese visa (work, business, tourist, etc.) may be denied due to a record of non-compliance with Chinese law.

2.3. Personal Credit and Social Standing:
2.3.1. Non-payment may negatively impact an individual's standing within the national social credit system, affecting various aspects of life in China.

Reference Link:
For official information, please refer to the guidelines from the Chinese government. A relevant source is the State Council's decree on social insurance:
Interim Measures for the Participation in Social Insurance of Foreigners Working in China (State Council Decree No. 625)

3. Disclaimer and Dynamic Nature of Policy

3.1. The information contained herein is provided as a guide based on current policies and our understanding thereof.
3.2. Government policies, laws, and local enforcement practices are dynamic and subject to change without prior notice.
3.3. DEIL GROUP CO., LTD. and its subsidiary groups shall not be held liable for any discrepancies, changes in policy, or individual consequences arising from an individual's failure to comply with social insurance regulations.
3.4. For the most accurate, detailed, and up-to-date information, it is strongly recommended that you directly contact the nearest Yiwu Exit-Entry Administration Bureau (Immigration Bureau) or the Yiwu Human Resources and Social Security Bureau.

4. Acknowledgement

By virtue of your continued engagement with DEIL GROUP CO., LTD. and presence on its work visa, you are deemed to have received, read, understood, and agreed to the terms outlined in this notice and acknowledge the serious implications of non-compliance with the social insurance laws of China.

We humbly advise all our directors to ensure full compliance to avoid any personal legal or immigration complications.

DEIL GROUP CO., LTD. (DEIL CHINA GROUP)