Yes, but if you read closely, you'll find that OP never actually said that employee "H" was removed from their Google Play account. Instead, they say that "H [had] all permissions removed except on one game which we were still using H.'s consultation on - The app was unpublished later on". So H was still associated with the company's developer account as part of the unpublished game.
And so what?
Did H violate any rules on that specific game?
If you have an employee doing stupid things on their own personal account on their own personal time, should your company’s Google Play developer account also be terminated?
This is one of the many reasons I personally stay as far as possible from anything to do with Google.
What’s next? Loosing access to all our company’s emails and personal photos because someone former employee’s twice-removed cousin decided to try their hands at phishing?
Sounds like a joke, but if even Google employees' families can permanently lose access to their Google account without any recourse[^1], who’s safe?
Yes? That kind of makes sense if they are still working on something for the company right? Just because they have a side job as a fraud doesn’t make their day job any less legal.