Depending on the culture of the establishment, immediate termination may not be possible. Even still, I would question the competancy of Evelyn. Why would she allow this behavior to go on? I would question the competancy of the management in general. Why does a first-line manager have to wait for the annual review to address a personnel issue? Why aren't there regular one-on-ones between the manager and the direct reports? Why aren't there skip-level sessions with the leader's leader? I think there is more than what meets the eye here.