Sounds like they got off easy. In fact, it sounds like they did the best thing they could do as there is already a track record. Had they tried to screw her further, they could be in really deep trouble. In fact, a lot of local employers depend on fear to get their way. The fact that she pursued it, made them wary of her and figured out a mutual releasing of the contract would be easier than trying to screw her further.
Let this be a lesson for your cousin. Never sign anything without getting a copy of it on the spot, or taking a photo of it, as mentioned. This will put off any employer who might be having designs on messing with employees. Too many of those slippery bastards out there already.
Let it be a lesson learned.
smsm