Sounds like it's more of a problem with phd students than with Falkland islands.
Employers can pull the "non recommendation" thing anywhere under any circumstance. Why would this occurrence be at all special? That’s like saying they got mugged by someone, don’t go there.
I think you can get a job in most fields fairly easily without references if your resume is good. I don't think it's possible to get a job without references in academia.
The boat - she was trapped. Elsewhere you can find another position, move, change schools, something.
Technically, just to be that guy, she worked all the extra time and was compensated for it with a recommendation.
Technically, just to be that guy, many slaves worked all the extra time and was compensated with eventual freedom.
That would be fine if that was the initial offer. But it wasn't. It was a bait and switch. It wasn't until she was trapped that they pulled her pay.
That's criminal, and it's worrying you're justifying it under an account named "Workaccount2"