Advice and Instructions

Trust - as a Legal Entity

Issued: 2 January 2002

Trusts
A trust is a popular type of business arrangement for small business but, unlike a company, is not a legal entity and cannot contract in its own right. Giving the name of a trust as the employer of apprentices/trainees is incorrect, as a trust cannot employ apprentices/trainees.

However, in circumstances where a trust arrangement is indicated, there will be a trustee conducting the trust’s business on behalf of the members of the trust. The trustee, often a proprietary company established for the purpose, contracts on behalf of the trust and accordingly would be the legal employer of the apprentices/trainees indicated as employed by the trust.

New Apprenticeships Centres should ensure that the employer nominated in an application lodged by a trust to establish an apprenticeship/traineeship is the trustee of that trust.

Officers approving apprenticeships/traineeships may wish to verify that the nominated employer is the trustee by sighting the trust deed, which contains the details of the trust and the trustee.

Unit Trusts
Note that where a unit trust arrangement is indicated, the terms of unit trusts divide the ownership of the trust into a number of equal units issued to investors, companies or other joint ventures. In the case of unit trusts, as with other trusts there must be a trustee appointed, as in the case of all trust arrangements, the unit trust trustee should be indicated on the TC as the legal employer of the apprentice/trainee.

Other Resources:

• Catholic Archdiocese of Sydney – Legal Entity