Employers and managers tend to have a habit of assuming they're getting the worst end of a deal and that you're holding something back from them—as if their workers are colluding against them and not just desperately trying to keep up with their current workload. Even if they're already grossly underpaying you for your work and the value that you provide, they'll still try and convince you that you really could be doing more if you weren't so inefficient. Whether or not they actually believe this or are just trying to squeeze every last drop out of you remains uncertain and probably depends on the (emotional) intelligence and penchant for cruelty of the person calling the shots.
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This remote worker, the original poster's coworker, had grown used to working strange hours in order to accommodate the needs of the business and to better serve clients. But, when the owner of the company came to the realization that they weren't working the “usual” hours of business, they demanded that the remote worker stick to their contracted hours. Of course, the remote worker was more than happy to oblige, since working their contracted hours no longer meant being up working at odd hours into the night. The disruption to the business that followed immediately afterward cause the owner to immediately regret taking issue in the first place.
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