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You need to ask your boss if he can sack the niece if she does a bad job. This is why you don't get friends to do jobs in your house, if it goes wrong you have to tell them off and then pay to get someone in. You loose both money and a friend, and whomever you get in will complain that the job will cost more because "someone has messed with it". Which will be the same when the niece goes, it will take twice as long to sort her mess out. Actually sounds like a small firm that has no HR department, if he is thinking of employing a niece.
Scab!
"I and a coworker"? Seriously? A COWORKER AND I!!!!
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Let her try, see how it turns out hah, they'll be crying for you back
Nepotism: it's a powerful thing.