Does the empty check for 'Employee = empty' ? Then it makes no sense to set the association on the picture since its still empty because you do not create a new employee. If the employee is not empty there the other branch will be taken, so this MF will never create a useful association.
However if you check if the picture is empty, than it might work as intended.
I suggest creating the picture and the assocation before you open the form, han you can use the assocation as source for the inner dataview instead of a MF