Re: Yes, you can
It's happening in the company I work for now.
It's not even borderline dubious, it's flat out illegal.
Offer a good payoff and threaten that if you challenge it the company lawyers will screw you over good and proper and you'll end up with a not very friendly fraction of what you'd get for going quietly.
Then 'promote' someone into a slightly differently titled position to do the same job as the poor sap that got ousted at half the price to the company.