Janet Pennington, 51, from Stockport, was given a 12 month sentence in November for breaching an Asbo made in 2003.
London Court of Appeal judges have now reduced the jail term to five months, allowing her to be released shortly.
They said they could not see any likelihood that she would re-offend.
The court accepted an argument made by counsel on Pennington's behalf that the Manchester trial judge had taken insufficient account of the age of the offence and that there had been no new offending since.
'Personal difficulties'
"We have every reason to believe, having regard to the time that has now elapsed since the last breach, that there really is no prospect of any further misconduct on her part," said Mr Justice Henriques.
In November, at Manchester Crown Court, Pennington was found guilty of showing threatening behaviour towards her employer, Alistair Bradbury, and his children.
Evidence was shown of her breaching the Asbo by sending text messages between November 2004 and January 2005, to an employee of Mr Bradbury.
Mr Justice Henriques, sitting with Mr Justice Gray, reminded Pennington that the Asbo - which prohibits her from contacting Mr Alistair Bradbury or employees of his plumbing and heating business - remains in place until 2008.
The appeal court heard that Mr Bradbury had previously lived next door to Pennington and had employed her.
The court was also told that she had had "a number of personal difficulties and began to behave in what has been described as an obsessive and irrational way towards Mr Bradbury".
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