Legal basis: Article 2 of the Labor Contract Law of People's Republic of China (PRC) This Law is applicable to enterprises, individual economic organizations, private non-enterprise units and other organizations (hereinafter referred to as employers) in People's Republic of China (PRC) to establish labor relations with laborers and conclude, perform, modify, dissolve or terminate labor contracts. State organs, institutions, social organizations and laborers who have established labor relations with them shall conclude, perform, modify, dissolve or terminate labor contracts in accordance with this Law.