I got terminated after 9 years with the company and employer gave me the Termination notice letter with 12 month salary and health benefit, it should end by May 03, 1017.
My health benefit stop as of Sep 30, 16 and now my bi-weekly paycheck stop as well.

Please let me know if they can do this.

Hi there, from what I understand - you were offered a severance package which was subsequently revoked. To answer your question - no, this is not a legal action - particularly if there are signed documents setting out your entitlements. To better advise on next steps, it would be helpful to have more information about your employment and the package you were given. Please contact ST Lawyers at the number below for more information.