After Lazada, ChatGPT’s parent company, OpenAI draws criticism for unfair exit clause

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Both companies are scrutinised for contract clauses that significantly impact their former employees' futures

The Times of India reported that ChatGPT’s parent company has come under fire for a controversial “employee exit rule” that threatened to revoke vested equity from departing employees who refused to sign non-disclosure agreements .

On X, he wrote, “We have never clawed back anyone’s vested equity, nor will we do that if people do not sign a separation agreement . Vested equity is vested equity, full stop.”we have never clawed back anyone’s vested equity, nor will we do that if people do not sign a separation agreement . vested equity is vested equity, full stop.

Lazada, on the other hand, faced backlash early this year after some laid-off employees exposed the company’s extensive non-competition clauses. Lazada’s suggestion to wait for a potential initial public offering for share redemption has not alleviated the frustration, as the company is not yet profitable, and the value of the shares has dropped.Experts have also questioned the fairness of such broad non-competition clauses, with one HR expert calling them “unethical” and detrimental to the employees’ ability to find new work.

 

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