Lookup Field by ID

Lookup Field by ID

I have  a form with lookup field "Employee" reference to the employee form by Internal ID. with Display field "Name"
 
For some reason I cannot have 2 records referencing to the same employee. if I select Employee that is used on another record, Employee from another record disappears.
 
Problem 2: maybe related to the same issue, I cannot delete record now. Zoho loops