Hours of Service for Vesting Sample Clauses

The "Hours of Service for Vesting" clause defines how an employee's work hours are counted toward earning a vested right in a benefit plan, such as a retirement or pension plan. Typically, this clause specifies the minimum number of hours an employee must work in a given period—often a year—for that period to count toward vesting. For example, an employee may need to complete 1,000 hours of service in a plan year for that year to be credited toward their vesting schedule. The core function of this clause is to ensure that only employees who meet a certain threshold of service accrue rights to benefits, thereby preventing short-term or minimally engaged employees from qualifying for long-term benefits.