he's an employee getting paid to do his job. If Kelly wants to do something risky to jeopardize his job and lose that pay, then that's on him.
If the university is trying to cover itself, they are entitled to do that. Now, there could be repercussions for that from future prospective coaches, so that is ND's risk.
If ND cans him, he's going to get a new job quickly and will be getting 2 huge paychecks for a while. If he jumps ship ND is stuck without a coach and little time to replace him. Not exactly the same as if our companies were going behind our backs to find our replacements.