That is the time to go another direction and then do your best to put them out of business and find something better. I was dumped hours after I had landed a really large contract for the company I worked for in the mid/late 90's and then 30 minutes later I was laid off with 2 days severance even while my contract required 5 weeks. I walked out and by the next day had called all the companies that had just hired us, including the large contract, and told the companies that they had been lied to by that company and that I no longer worked for them, and that the boss had known that prior to sending contracts to them. Within 1 day 80% of the companies based on contract value for my department had cancelled the contracts. Within 2-4 weeks I had started my own company, within 6 months my former company went under, and I am still around and kicking!