**Why Employee Benefit Trusts Are Established in Organizations?** Then, what are employee benefit trusts, and when would a company choose to have one? It is a trust that maintains assets for the welfare of the employees in connection with reward schemes, ownership or share schemes. In case you are asking about how does an employee trust function, it is normally established in such a way that it specifies how its assets will be used for the welfare of the eligible employees. The abbreviation of EBT stands for Employee Benefit Trust, while [EBT what does it mean](https://accountance.net/employee-benefit-trust/) is just a shortened version of the term.