Laogai (劳改、劳动改造) is reform through labor for criminals. Laojiao (劳教、劳动教养) is reeducation through labor and is an administrative punishment separate from the judicial system, this was abolished in 2013.
China published a white paper titled "Criminal Reform in China" in 1992 that mentions reform-through-labour: http://lt.china-office.gov.cn/eng/zt/zfbps/200405/t20040530_2910767.htm
I think the specific term laogai isn't used officially nowadays, but criminals are still expected to work. From the Criminal Law:
Article 46 An offender sentenced to fixed-term imprisonment or life imprisonment shall serve his sentence in prison or another execution premise; anyone who is able to work shall engage in work for the purpose of education and rehabilitation.