How about you start a school and I'll nitpick every decision because you don't have a rule for it? The school doesn't need handcuffs. It's their school. They can do what they want. The last thing we need is more regulations on freedom.
Appy, im on the side of the school and its freedom to operate as it pleases. I just think they could have handled the situation in a far better way.
They should clarify their guidelines on employment though. As you want it, on Monday Job A is ok, but come next Tuesday it is not ok, but then the following week it is OK again. Set clear guidelines and stick to em.