Lady Booby decides to immediately dismiss Joseph, even though she still has the hots for him.
Well, okay, she plans to immediately dismiss him—after she has one last stab at seducing him.
It's a no go.
The straw that finally breaks the camel's back is Joseph's mention of his sister, Pamela. Lady Booby's having none of it.
Slipslop, in the meantime, is desperate for Lady Booby to keep Joseph on. After all, she's still trying to make things work out for herself and Joseph romantically.
Lady Booby fires Slipslop for being sassy, but it's a dangerous deed. Slipslop could totally expose Lady Booby for trying to seduce a footman.
Joseph writes another weepy letter to Pamela, having finally figured out that Lady Booby is in love (or something) with him. Luckily, Parson Adams taught Joseph the virtue of chastity.
Mr. Peter Pounce, Lady Booby's right-hand man, dismisses Joseph on the double. Dude doesn't even get to keep his footman costume, which is a real shame.