Freddie tells Phoebe about the affair.

Radio Times: Roy is determined, and Freddie has news for Phoebe.

Freddie and Phoebe are both running late for school. This ends up with Hayley having a go at Mike. Later Hayley says sorry to Mike but he has another go at Roy for giving up his job and won’t drop it with Hayley either. She distracts him with some comments on the interest he’s had on his business.
Caroline turns up at Lower Loxley to ask why Roy has left. Elizabeth says it was just time to move on. But later Caroline offers Roy a temporary job as a reception clerk and Roy jumps at it.
Roy tackles Elizabeth and says she must come up with a decent settlement package or they will go to a tribunal. Elizabeth says she thought they were going to be civilised about it and Roy says that an ex gratia payment is not enough. The job Caroline offered would barely pay the grocery bill. Elizabeth says it can’t possibly be in their interest to have all of this out in the open.
Freddie meets Phoebe and tells her about the affair. Phoebe finds it hard to believe. But then she decides Roy is just a hypocrite. And Freddie has jumped to the conclusion that because he saw Roy’s car at Lower Loxley that the affair must still be going on.