All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His Slave and Messenger.
If what you have mentioned is true, then that brother has wronged your husband and his attitude is unfair and oppressive. Allaah, The Exalted, created Man and honored mankind with reason, distinguishing Man from all other creatures. He blessed Man with (the faculties of) hearing, sight, heart, mind and understanding in order to choose what benefits him in the worldly life and the Hereafter. Allaah, The Exalted, says (what means): {And We have certainly honored the children of Adam and carried them on the land and sea and provided for them of the good things and preferred them over much of what We have created, with [definite] preference.}[Quran 17:70] Al-Qurtubi reported that At-Tabari said, “The correct opinion is that the preference was in blessing Man with the mind, which is the decisive factor in deeming a person competent for religious assignments. The faculty which distinguishes man from all other animals is his mind, by means of which Man knows his Lord, understands His words, relishes His blessings, and believes in His Messengers...” Allaah, The Exalted, says (what means): {And Allaah has extracted you from the wombs of your mothers not knowing a thing, and He made for you hearing and vision and intellect that perhaps you would be grateful.}[Quran 16:78]
In principle, all people are free, as ‘Umar ibn Al-Khattaab said, “Since when do you enslave the people when their mothers bore them as free men?” Therefore, it is impermissible for your brother-in-law to humiliate and control his brother in such a manner, and it is impermissible for your husband to accept such treatment.
You should advise your husband to work and cooperate with his brother – if he wishes - without incurring such hardship upon himself. You can also ask someone to advise your brother-in-law and ask him to fear Allaah and treat his brother justly and give him the salary he deserves in order for him to provide for himself and his family.
Moreover, your brother-in-law should not assign work to your husband in such an unreasonable way, not allowing his brother to have time to take care of himself and his family. The Prophet made a bond of brotherhood between Salmaan and Abu Ad-Dardaa' ... Salmaan said to Abu Ad-Dardaa’ ‘Your Lord has a right on you, your soul has a right on you, and your family has a right on you; so, you should give to everyone his due right. Abu Ad-Dardaa' came to the Prophet and reported the whole story. The Prophet said: ‘Salmaan has spoken the truth.’” [Al-Bukhari and Muslim]
Finally, a wife has the right for her husband to live with her in kindness as underlined in Fataawa 86618 and 88304. Another one of her due rights is for her husband to provide for her as highlighted in Fatwa 168551.
Allaah Knows best.