Dear All
An already operating company invites new business ideas from all of its employees and decides to pay some nominal amount to all the qualifying entries and a prize for the winning entry every quarter.
Is there any issue involved in such payments to the employees as it will be in addition to the monthly remuneration?
Will that amount to entering into a contract with the employee? I think yes, as there are two parties involved and some specific services are provided for a consideration.
If yes, can the Company validly enter into a contract with its own employees?
The Company will mention very clearly that all the entries made will become the property of Company and no employee can claim any interest or right in the idea given to the Company.
This will also mean that in future if an employee wishes to start that particular business for which idea was submitted by him, irrespective of whether Company liked that Idea or not he has to take prior permission from the Company and the Company may ask him to pay for buying his own idea from the Company.
Any comments!!!!!!!! Its urgent so an early reply will be deeply appreciated.
Best Regards
Jitendra
Business Transaction with an employee 
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