"But we had to do <terrible thing> because it's the law" isn't an excuse, just a different form of condemnation.
If the “terrible thing” you’re referring to is paying someone according to a contract signed then, yes, it’s an excuse for why they had to do it.
That’s literally how contracts work.
All it changes is the timing of when the action worthy of condemnation occurred.
Not paying him and getting sued for it would save about 50 jobs temporarily. Not "thousands"...