Conflict of interest

In certain situations, the work activities of family members can create a conflict of interest. 

This could be a problem if you, or someone who reports to your husband, has business dealings with the company or plays a role in selecting your wife’s company as a supplier. Tell to your husband to inform his  supervisor about this relationship and do not participate in decisions or negotiations with the supplier.

You must be careful to avoid a conflict of interest when you seek business with his company

Even if there is no such clause in appointment letter of your husband, it shall create problem for you as well as him.

Has your disclosed the details of your consultancy before taking up the  employment?

Thanks! Can you please elaborate on the potential problem - besides termination, can it have any other consequence?

You can wait and watch the developments if that has any other impact other than his employment getting terminated due to this

The Firm can claim damages/compensation if they tangible evidence of unfair advantage to your firm vis-a-vis theirs.