The significance of creating trust in the leaders has shown increased importance in the contemporary organizational setup. The study discusses the effect of Trust on Leaders has in Creation of Employee Innovation in Organizations in the present-day. Purpose: The study is to determine the relationship Trust on Leaders has in the Creation of Employee Innovation in contemporary organizations Design/Methodology/approach: The research is conducted perusing the recent Journals and articles published in reliable, high-quality Journals on the captioned subject. Quantitative research Conducted on a deductive approach through a survey questionnaire in the banking industry of Sri Lanka Findings: Trust in the leader by the employee is showing a positive relationship to employee innovation in organizations. Therefore, improving the Trust in leaders by the employees would enhance the innovative behaviours of employees in organizations.