legally they are allowed to do this. they own the copyright to the melody and words so they can legally do it. not saying that it's right or it's okay tho.
I talk from legal perspective. YT has a deal with publishers and a different one with creators, a.k.a he isn't making deals with the publishers nor is he making deals through YT. If that was the case he would know how much he'll get (even if 0) when he uploads not 1 month later.
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Also, not to brag, but I've actually had to pass an exam from copyright law. I see the issues from a different perspective as he does. I'm not blaming him, he probably missed a detail, if I'm missing a detail in this case, he is free to add to it.
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