1. Yes, they are allowed to do that, assuming you&#x27;re an at will employee with no contract that specifies otherwise.<p>2. I&#x27;d give notice, citing the change in performance review and withdrawal of the promotion&#x2F;raise as the cause. It&#x27;s one thing to work in what appear to be horrific conditions, it&#x27;s another to then be retroactively denied compensation.<p>The main X factor is when you give notice, and that&#x27;s up to you: personally, I&#x27;d probably give notice immediately and see if the company counters with an offer to reinstate what you were promised. Otherwise, start looking for another job and give notice as soon as you get an offer.<p>This will certainly come up during your next job interview, so you don&#x27;t want to burn any bridges or get too emotional about this (even though you have the right to, for sure):<p>- Be calm and factual when explaining why you&#x27;re giving notice, to prevent poisoning the reference: your performance review was changed after the fact, and you were denied compensation and an advancement opportunity you were previously promised. In any situation, this is a reasonable and justified reason to leave a job.<p>- Do not give K as your reference. Give one of your other superiors.<p>- When explaining why you left your previous company during interviews, you don&#x27;t want to throw them under the bus. Explain that you were looking to advance and grow as a developer, but those opportunities were not available at the previous company.