It's not between sticking around or quitting. They could have gone out and found a new job. One that presumably pays more than unemployment and quite possibly given the current stage of the economic cycle, more than their current job.
I for one wouldn't mind being unemployed for 3 months.
A 3-month hole in your resume will be something you'd have to explain to your future employers for the rest of your life.
Huh? People take time off between jobs all the time.
Whenever there are unreasonable rules and you really do want to get around them, all you have to do is find a way to demonstrate your talent sufficiently that people will bend them for you.