Make them pay you for leaving.
If you quit, you just force them to hire someone else. If you don't, they have to either change their behavior or build a case to fire you, and still go through the hussle of hiring someone else.
This is better for a few reasons.
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It forces them to deal with the problem they caused. At a minimum they have to tell their manager what is going on. Don't be surprised if their manager is appalled by their behavior. Even if that's not the case it doesn't matter.
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If you get fired you get to collect unemployment which is better than nothing
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You can immediately start looking for a job before you lose the current one. Don't ruin your finances because your boss is an idiot.
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You can call their bluff and watch them either try to justify it or swallow their pride. What the worse they can do? Fire you
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Quiting counts are turnover. Firing counts different for most companies. It will fick with their numbers, create a paper trail and if they keep haven't ng to fire people it will create problems for themselves. Don't underestimate how much training and bs low level managers have to deal with.
I understand telling someone to fuck off or that you quit feels good, but it does have repercussions in your personal life. Essentially you trade a moment of triumph when you can create a long term problem for them until they remove you, giving you ample time to get a different job.