While what you write certainly appears to almost entirely favor college managements over their faculty, you seem to overlook one critical factor:
Choice in Employment Contracts
Each of those faculty members had a CHOICE which they exercised at the time of accepting employment—albeit under the provisions of an almost lop-sided contract. They had a CHOICE to accept that contract, negotiate better terms, or at worst—reject the contract entirely and work elsewhere.
I am not a lawyer. Thus, I am not sure whether there are statutory or regulatory requirements that protect a person's employment contract or notice period in private engineering colleges.
But, the truth is that we ALWAYS have a CHOICE! The options may not be terribly attractive, but they exist. And, each of us is FREE to EXERCISE those OPTIONS! Either we Agree or we Walk Away!
Management Consultants and Contractual Obligations
The situation you describe is very common to management consultants. Each client we take on is a contractually created and protected relationship. The severity or obligations of each contract vary. Some are fair, some inane, while some are obnoxiously client-centric with severe penalties, lunatic non-compete clauses, and terrible exclusionary provisions, etc.
When I sign up a client, the onus is on me to read the contract thoroughly prior to accepting and signing it. It is not uncommon to find many management consultants walk away from lucrative assignments with marquee brands due to contractual disagreements. But, we do it PRIOR to signing the contract. Yet, there are many who will accept those assignments regardless of those same limitations. Each to their own!
What is not fair is to first sign the dotted line and then complain of its unfairness AFTER having accepted it. Unless, of course, an individual was made to commit to that contract under duress, inducement, or threat of harm to self or others.
Also, lack of employment opportunities (at the time of accepting an unfair contract) may be an exigent circumstance, but it isn't either duress or inducement.
Understanding Contractual Favoritism
A critical fact that over 99% of prospective employees fail to realize while accepting a job (probably due to their enthusiasm on getting a job in the first place) is that any contract will ALWAYS FAVOR THE MAKER. This is a rule the world over for any type of contract—unless the construct, content, and provisions of that particular contract are regulated by legislation. That is why lawyers exist. How many times do prospective employees take a copy of the employment contract to THEIR LAWYER prior to signing it? Almost Never! Why? Because most never realize that what they are signing is a legally enforceable document that will live far longer than their initial exuberance at getting a job.
You will be surprised how many times I've suggested to well-qualified senior professionals to get their employment contract vetted by an independent lawyer. I am yet to have any of them heed my suggestion. And, some have learned the very hard way after paying a substantial financial and/or psychological price! But, such is life, I suppose.
Please don't misunderstand me. I realize there are a number of unscrupulous operators who prey upon people's vulnerabilities. And, they can and do cause considerable psychological and/or financial damage to their employees.
But, until statutory or legislative provisions do not mandate and/or regulate employment contracts, it will always be a case of Caveat Emptor.
I wish your friend/s All the Very Best and I am sure better days are just around the corner for them!
Take Care...