Unlike SpongeBob's and Mr. Krabs' father and son-like relationship, Squidward's and Mr. Krabs' is more of a run-of-the-mill employee and employer. They do not necessarily consider each other friends but are shown to get along in certain situations. They are shown to have multiple fights with one another, mostly concerning with Mr. Krabs' greed or Squidward's lazy tendencies. Although they don't have too much in common, they do have a long history together, as shown in multiple episodes where it is assumed that Squidward was one of the first, if not the first, employee to work for the Krusty Krab.
Unlike SpongeBob, Squidward is far more aware of Mr. Krabs' character as a greedy, crustaceous cheapskate who only cares about his own personal gain and often shows this attitude toward him directly, though Squidward will sometimes respect and listen to Mr. Krabs' authority. Mr. Krabs does also think very lowly of Squidward, often blaming him for mishaps, though does still see him as a valued member of the Krusty Crew on occasion.
Episodes in which they have been on good terms
- "Help Wanted:" At first, both of them do not want SpongeBob to join the Krusty Crew, so they try to get him out of sight by making him buy an overexagerrated spatula. When the anchovies rampage in the Krusty Krab, both hold onto each other for survival.
- "Patty Hype:" They both laugh at SpongeBob's creation of Pretty Patties and mock him with novelties of their own like sequin milkshakes and bow-tie french fries.
- "Squid on Strike:" When Mr. Krabs begs him and SpongeBob to come back to their jobs, Squidward agrees and takes a stroll. This ends however when SpongeBob destroyed the Krusty Krab.
Episodes in which they have been rivals
- "Dying for Pie:" Mr. Krabs gets angry at Squidward because of Pie Exploding on Krusty Krab's office.
- "Squid on Strike:" Squidward criticizes Mr. Krabs charging them for ridiculous things, making him go on strike. Throughout most of the episode, Squidward uses SpongeBob to get Mr. Krabs to regret his decision. While the two regret their actions, this continues when Mr. Krabs gets mad at the two since SpongeBob destroyed the Krusty Krab.
- "Krab Borg:" After SpongeBob and Squidward realize that Mr. Krabs is acting like a robot, they help each other to restrain him until he admits his recognition. After he refuses to confess, Squidward begins breaking his prized possessions, causing a feud between them two. After SpongeBob brings out Mr. Krabs' last gadget, he whimpers to Squidward, begging him not to destroy his last belonging. Squidward then notices that robots can't emote. The blaming then goes to SpongeBob, who explains how the movie he watched was just his imagination, which leaves Mr. Krabs furious at Squidward.
- "Can You Spare a Dime?:" When Mr. Krabs realizes his first dime is missing, he accuses Squidward for it. Squidward would then strangle Krabs' eyes and quit, causing SpongeBob to comfort Squidward, but when the latter over-abuses him, SpongeBob angrily moves him out and tells Mr. Krabs to give Squidward his job back. Mr. Krabs refuses and SpongeBob strangles him until his first dime drops from his pocket. Krabs then rehires Squidward, but accuses him for putting the dime in his back pocket by mistake. They feud once again.
- "Clams:" Once they find out they are clam fishing as their vacation spot, Squidward gets infuriated by this. Yet once Mr. Krabs loses his millionth dollar to the clam, Krabs cries to the point where an annoyed Squidward "agrees" to help him retrieve it. Even after days in the ocean, Mr. Krabs refuses to give up, making Squidward force SpongeBob to give him a replacement and lie to him. Yet Krabs knew that it was a facade, which saddens him to the point of making them starve. Squidward then convinces SpongeBob to escape through the safe boat. Krabs then captures them and interpreting this as mutiny, uses them as sacrifices for the clam so he can get the dollar back. Squidward tells Mr. Krabs that he is completely insane in which Krabs laughs crazily. As Krabs got his dollar back, he was eaten. Squidward cries about the fact that he was tied up with SpongeBob. Krabs then reveals to have survived.
- "Born Again Krabs:" After Mr. Krabs sacrifices SpongeBob for 62 cents, Squidward scolds him for this stating that SpongeBob stood up for him and he got sold out ashaming Mr. Krabs. Krabs then regrets this decision.
- "Chum Fricassee:" Squidward criticizes the Krusty Krab's surroundings (even with the lack of a doormat) and states that if he ran a gourmet restaurant, his would be where people could not resist his cooking. Mr. Krabs laughs at this statement, making Squidward leave the Krusty Krab. As Plankton offers Squidward to help at the Chum Bucket, Squidward initially refuses, but Krabs passing by telling him that he does not value him at all makes him quit and accept the offer. As Squidward's Chum Fricassee made success for himself and Plankton, Krabs and SpongeBob investigate the Chum Bucket, only for Squidward to give them a "reserved spot" (a picnic blanket-covered toilet) to where they sadly leave. With Squidward's overwhelming success, a man offers Krabs and SpongeBob a blob of Chum Fricassee. Krabs tastes it and finds it delicious, making him cry that his business is ruined. Fortunately for him, Squidward rushing Plankton to finishing the Fricassee made his grandma come over to save her recipe from him, telling him that his recent chum is undercooked, destroying both Squidward's and the Chum Bucket's success. Krabs then hires Squidward back, both for causing mayhem at the Chum Bucket and as revenge, promotes his as a doormat.
- "Out Of The Picture:" Mr. Krabs wants to murder Squidward for money.