ok, so the required validation for the employers name is at line 22:
$WAFV_Errors .= WAValidateRQ((isset($_POST["EmployersName"])?$_POST["EmployersName"]:"") . "",true,12);
to make that required only if the Employment status is set to employed, change that to:
$WAFV_Errors .= WAValidateRQ(((isset($_POST["EmploymentStatus"]) && $_POST["EmploymentStatus"] == "Employed")?$_POST["EmployersName"]:"") . "NA",true,12);
as for the spry validation, which one is giving the syntax error?
one issue i see in your form is that you have some form element names that are not valid.
for exaample the declaration select lists use numbers and the underscore character as the first character in the name. When naming form elements, you should follow these rules:
1) only use letters and numbers, the only exception is the underscore.
2) The first character of a form element name must be a letter.
NOTE: You will need to delete the following line for spry validation, spry does not support conditional validation:
var EmployersName_Spry = new Spry.Widget.ValidationTextField("EmployersName_Spry", "none",{validateOn:["blur"]});