Here's another interesting question:

What if everyone else finds out the the employee had an affair with the boss and the boss knew and the boss didn't fire him?

I'd honestly have trouble respecting the boss in that situation. This holds even if I were good friends with the guy who got fired. If one of my pals got caught having sex with his boss' wife and he got fired, I'd laugh because what the fuck man, why the would you ever even consider doing that? I wouldn't fault the boss at all, even if I otherwise thought he was a prick.

Finally one that isn't a hard decision for me: it's their business, not mine. If the boss and the employee and the wife are all good with it, great, no problem.

While I'd agree, I think the very fact that he's asking this question is proof enough that at least one of the three parties is not fine with the relationship.

That seems like a very different situation to me.

Like if they were all just consensual swingers that's fine with me. Not my thing, but to each his/her own. But based on what the guy wrote it doesn't sound like that is the case at all.

This reminds me of another story "Fired for being too hot" http://gma.yahoo.com/blogs/abc-blogs/dental-assistant-fired-...

In this story the wife asks the husband to fire the very competent & sexy assistant. He does and the court rules in his favor... because she was a cause for distraction (simplified). I don't agree with this ruling since the assistant did not do anything wrong.

If him being around makes your life miserable, fire him (check with a lawyer first). He's obviously a cause for distraction, you're going to have a hard time trusting him and you are probably having a hard time focusing around him.

In the US, you can be fired for almost any reason. You can be fired because the boss doesn't like your hair, for example. There are very specific exceptions (race, gender, religion, sexual orientation in some states, etc.) but "being too hot" is not one of those exceptions.

US courts have ruled very consistently on this point.

Trust is more important than skill or domain knowledge or even cultural fit. Without trust, everything else is useless.

Agree. Trust is the most valuable economic asset in the world. Its the foundation of all co-operation (informal) and contract (formal).

Yep. Trust is fragile. Once it's shattered, it's hard to piece it back together, especially in this gentlemen's case. The odds are against this work relationship being a healthy one for him and company morale. Time to make a quick termination and move on with more trustworthy co-workers.

I think he is showing a more obvious solution that removes his own emotional investment by reframing the situation.

It's more interesting because in this example, you're the neutral party.

In such a situation, I'd figure out what I'd do if (best developer) got hit by a bus, and proceed from there.

As in, you'd hire a bus driver?

As in, "I'd figure out how to keep the company successful and growing after one of my employees suddenly wasn't there any longer."

whoosh!