Service With Controlled Groups Clause Samples

The 'Service with Controlled Groups' clause defines how employment or service with entities that are part of a controlled group—typically companies under common ownership or control—are treated for the purposes of the agreement. In practice, this means that time spent working for a parent company, subsidiary, or affiliate may count toward service requirements, such as vesting or eligibility for benefits, as if the individual had worked continuously for the main employer. This clause ensures that employees who move between related entities are not penalized or lose accrued benefits, thereby providing continuity and fairness in the administration of employment terms.
Service With Controlled Groups. All Years of Service with other members of a controlled group of corporations [as defined in Code Section 414(b)], trades or businesses under common control [as defined in Code Section 414(c)], or members of an affiliated service group [as defined in Code Section 414(m)] and any other entity required to be aggregated with the Employer pursuant to Code Section 414(o) shall be credited for purposes of determining an Employee’s eligibility to participate.
Service With Controlled Groups. All Years of Service with all members of a controlled group of corporations [as defined in Code Section 414(b) as modified by Code Section 415(h)], all commonly controlled trades or businesses [as defined in Code Section 414(c) as modified by Code Section 415(h)], or members of an affiliated service group [as defined in Code Section 414(m)] of which the Employer is a part, and any other entity required to be aggregated with the Employer pursuant to Regulations under Code Section 414(o), shall be considered for purposes of determining a Participant’s nonforfeitable percentage.