Clyde was banned for taking the piss out of Red. He was warned "stop taking the piss out of Red"...but he lost the plot one night and took the piss again. Taking the piss is a very serious offense and should be punish severely. We cannot allow anybody just to decide to have a sense of humor when management scorn upon it.
He was a funny guy, and hence deserved his ban....
Clyde is now in a sunny climate running his new successful business with Bonnie. I'm sure he is gutted.