If they aren’t offering severance or anything in return, what keeps people there other than laziness or fear of the unknown? If they took my benefits, rebadged me and asked me to train my replacement I’d tell them to eff themselves. Where is the incentive to do anything else?
They can deniably sabotage your career by trashing you when new employers call to verify employment dates.
The connected don’t even have to pretend to obey the law anymore.