Legal Question in Employment Law in California

Breach of employment contract

In January 2002, I signed a relocation contact given by my company specifies that relocation package (6 weeks relocation bonus upon relocation, and guaranteed 12 weeks severence if laid off before May 31, 2003).

Yesterday, the CTO told 5 of us that we won't be transferred and would be laid off instead on June 1, 2002. My question, is this a breach of employment contract? Can I still claim what's specified in the relocation letter?

Other pertinent facts:

1. CTO verbally told us that the company has enough cash to operate 18 months and none of us would be laid off before the transfer.

2. There is no contingency clause in the relocation letter saying that we might be laid off if the company is in bad financial situation or whatever.

3. When we told CTO/HR that we still plan to relocate before 5/31/2002 to claim our package, we heard that they are considering lay us off immediately prevent that. The CTO already handed out a termination letter saying that we would still be employed till June 1, 2002. My manager told me that they are considering giving us a new termination notice. Can they do that?

Thanks much.

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