Sorry i can't help with advice but i hope your friend does have the law on his side and he takes them to the cleaners.
It's just a sad indication as to how little we mean to the accountants that run the show these days. I did hear a story a while ago that a certain large UK loco sent a letter terminating the employment of one of their pilots who was off with cancer. I was told he died the day the letter arrived. All in the name of profit no doubt!