The "Interpretation (II)" focuses on addressing hot and difficult issues such as non-compete clauses, mixed employment, social insurance contributions, and contract renewal. The following key points deserve attention:

• Protecting employees’ basic rights: In response to phenomena such as subcontracting, layered contracting, affiliation, and mixed employment, it clarifies the primary responsibility of employers, including contractors, affiliated entities, and related units.
• Regulating non-compete clauses: It specifies that non-compete restrictions apply only to employees with access to confidential information, and the scope and duration of such restrictions must align with the degree of confidentiality. It also confirms the legal validity of non-compete clauses during employment and refines compensation rules for breaches by employees.
• Clarifying conditions for contract conclusion:

1. It lists four scenarios that qualify as "consecutively signing two fixed-term contracts," preventing employers from evading open-ended contracts through tactics like "automatic renewal" or "changing contracting entities."
2. If employment continues for more than one month after contract expiration without renewal, the employee may demand a renewal under the original terms or an open-ended contract. If the employer terminates the contract under such circumstances, they shall bear corresponding legal liabilities.

• Emphasizing mandatory social insurance contributions: Any voluntary waiver or agreement to exempt social insurance contributions is deemed invalid. Employees may terminate the contract and claim compensation. After the employer lawfully makes up the social insurance payments, it may request the employee to return the previously paid social insurance compensation.
• Defining standards for continued contract performance: If an employer unlawfully terminates or ends a contract and the employee demands continued performance, the "inability to continue performance" must be strictly limited to objective impossibility. Meanwhile, it clarifies the compensation standards for workers during the continued performance period.