Amidst recent revelations of unfair employment clauses at companies like Lazada and OpenAI, concerns are growing over the treatment of former employees and their future opportunities.
Following reports of an employee exit rule at OpenAI’s ChatGPT division, which threatened to revoke vested equity from departing employees who refused to sign non-disclosure agreements (NDAs), CEO Sam Altman issued an apology. He acknowledged the provision’s existence but clarified that it had never been enforced.
Despite Altman’s reassurances, the clause has caused distress among former employees, including Daniel Kokotajlo, who reported a significant loss of equity due to refusing to sign an NDA.
Similarly, Lazada faced criticism earlier this year for imposing extensive non-competition clauses on laid-off employees, restricting their ability to work for direct competitors and related companies. The lack of transparency regarding layoffs and the potential loss of vested shares has led to frustration among affected individuals, with some forced to choose between finding new employment and forfeiting shares.
Labour chief Ng Chee Meng recently announced that the Food, Drinks & Allied Workers Union (FDAWU) has been working to support affected ex-Lazada employees, closing matters for eligible union members in Singapore. The union has provided assistance and engaged directly with members to address their concerns.
As experts question the fairness and ethics of such contractual clauses, both OpenAI and Lazada have come under scrutiny for potentially limiting their former employees’ future prospects. The incidents highlight the need for more transparent and equitable employment practices in the industry.
