Reddit definitely has better features. It’s not even a competition. The reason we’re here is because of the Reddit administration and because of future potential. Eg, the apps are so new right now that Reddit’s official app is better. But in a couple of months, that won’t be the case anymore.
If they work without payment, they’re not your employees. And reddit isn’t a registered charity either.
It is their site so they can technically do what they want, but it makes them assholes and is not “ok” as you put it.