Legal basis: People's Republic of China (PRC) Labor Contract Law.
Article 1 This Law is formulated in order to improve the labor contract system, clarify the rights and obligations of both parties to the labor contract, protect the legitimate rights and interests of workers, and establish and develop harmonious and stable labor relations.
Article 2 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.
Article 3 The conclusion of a labor contract shall follow the principles of legality, fairness, equality, voluntariness, consensus through consultation, honesty and credibility. The labor contract concluded according to law is binding, and the employer and the employee shall perform the obligations stipulated in the labor contract.