either one disagrees they should be free to terminate that agreement. If that employee in the OP was delivering value equal to the wage don't see the problem. If the value wasn't there by all means she should be let go. Business owners do the same thing with their time. They work on other projects, investments, serve on boards etc. I have been both a business owner and employee. Some owners have double standards and expect their employees to care as much about their company as they owner. The don't they are employees just as the owner is not going to care as much about another company as their own.