I can not understand how it is legal to dismiss a worker with less than 14 days notice. Those are great workers rights! Thanks god we still have some of them here in Spain (although some have already been diminished).
I don’t excuse management for a second; they must have known the coffers were bare while they were still hiring.
After that the money goes to other instances (like the loan by the bank etc).
EDIT: They are paid out their outstanding wage for their performed work, not to the end of their contracts