diff --git a/init.d/cgroups.in b/init.d/cgroups.in
index c478098fa..25a5da071 100644
--- a/init.d/cgroups.in
+++ b/init.d/cgroups.in
@@ -21,6 +21,7 @@ depend()
 
 cgroup1_base()
 {
+	eerror "cgroups v1 is deprecated. Please unset rc_cgroup_mode."
 	grep -qw cgroup /proc/filesystems || return 0
 	if ! mountinfo -q /sys/fs/cgroup; then
 		ebegin "Mounting cgroup filesystem"
@@ -44,24 +45,22 @@ cgroup1_controllers()
 {
 	yesno "${rc_controller_cgroups:-YES}" && [ -e /proc/cgroups ]  &&
 	grep -qw cgroup /proc/filesystems || return 0
+
 	while read -r name _ _ enabled _; do
-		case "${enabled}" in
-			1)	mountinfo -q "/sys/fs/cgroup/${name}" && continue
-				local x
-				for x in $rc_cgroup_controllers; do
-				[ "${name}" = "blkio" ] && [ "${x}" = "io" ] &&
-					continue 2
-				[ "${name}" = "${x}" ] &&
-				continue 2
-				done
-				mkdir "/sys/fs/cgroup/${name}"
-				mount -n -t cgroup -o "${cgroup_opts},${name}" \
-					"${name}" "/sys/fs/cgroup/${name}"
-				yesno "${rc_cgroup_memory_use_hierarchy:-no}" &&
-					[ "${name}" = memory ] &&
-					echo 1 > /sys/fs/cgroup/memory/memory.use_hierarchy
-				;;
-		esac
+		[ "$enabled" = 1 ] || continue;
+		mountinfo -q "/sys/fs/cgroup/${name}" && continue
+
+		local x
+		for x in $rc_cgroup_controllers; do
+			[ "${name}" = "blkio" ] && [ "${x}" = "io" ] && continue 2
+			[ "${name}" = "${x}" ] && continue 2
+		done
+
+		mkdir "/sys/fs/cgroup/${name}"
+		mount -n -t cgroup -o "${cgroup_opts},${name}" "${name}" "/sys/fs/cgroup/${name}"
+		if [ yesno "${rc_cgroup_memory_use_hierarchy:-no}" && [ "${name}" = memory ]; then
+			echo 1 > /sys/fs/cgroup/memory/memory.use_hierarchy
+		fi
 	done < /proc/cgroups
 	return 0
 }
@@ -69,38 +68,42 @@ cgroup1_controllers()
 cgroup2_base()
 {
 	grep -qw cgroup2 /proc/filesystems || return 0
-	local base
-	base="$(cgroup2_find_path)"
-	mkdir -p "${base}"
-	mount -t cgroup2 cgroup2 -o "${cgroup_opts},nsdelegate" "${base}" 2> /dev/null ||
-		mount -t cgroup2 cgroup2 -o "${cgroup_opts}" "${base}"
+	mkdir -p "${cgroup_root}"
+	mount -t cgroup2 cgroup2 -o "${cgroup_opts},nsdelegate" "${cgroup_root}" 2> /dev/null ||
+		mount -t cgroup2 cgroup2 -o "${cgroup_opts}" "${cgroup_root}"
+	mkdir -p "${cgroup_root}/rc"
 	return 0
 }
 
-cgroup2_controllers()
+setup_controller()
 {
-	grep -qw cgroup2 /proc/filesystems || return 0
-	local active cgroup_path x y
-	cgroup_path="$(cgroup2_find_path)"
-	[ -z "${cgroup_path}" ] && return 0
-	[ ! -e "${cgroup_path}/cgroup.controllers" ] && return 0
-	[ ! -e "${cgroup_path}/cgroup.subtree_control" ]&& return 0
-	read -r active < "${cgroup_path}/cgroup.controllers"
-	for x in ${active}; do
-	case "${rc_cgroup_mode:-unified}" in
-		unified)
-			echo "+${x}"  > "${cgroup_path}/cgroup.subtree_control"
-			;;
+	local root="$1" controller allowed
+	shift
+
+	[ ! -e "${root}/cgroup.controllers" ] && return 0
+	[ ! -e "${root}/cgroup.subtree_control" ] && return 0
+
+	for controller; do
+		case "${rc_cgroup_mode:-unified}" in
+		unified) echo "+${controller}" > "${root}/cgroup.subtree_control" ;;
 		hybrid)
-			for y in ${rc_cgroup_controllers}; do
-				if [ "$x" = "$y" ]; then
-					echo "+${x}"  > "${cgroup_path}/cgroup.subtree_control"
+			for allowed in ${rc_cgroup_controllers}; do
+				if [ "$controller" = "$allowed" ]; then
+					echo "+${controller}" > "${root}/cgroup.subtree_control"
 				fi
 			done
 			;;
 		esac
 	done
-	return 0
+}
+
+cgroup2_controllers()
+{
+	grep -qw cgroup2 /proc/filesystems || return 0
+	local active
+	read -r active < "${cgroup_root}/cgroup.controllers"
+	setup_controller "${cgroup_root}" $active
+	setup_controller "${cgroup_root}/rc" $active
 }
 
 cgroups_hybrid()
@@ -109,21 +112,18 @@ cgroups_hybrid()
 	cgroup2_base
 	cgroup2_controllers
 	cgroup1_controllers
-	return 0
 }
 
 cgroups_legacy()
 {
 	cgroup1_base
 	cgroup1_controllers
-	return 0
 }
 
 cgroups_unified()
 {
 	cgroup2_base
 	cgroup2_controllers
-	return 0
 }
 
 mount_cgroups()
@@ -133,7 +133,6 @@ mount_cgroups()
 	legacy) cgroups_legacy ;;
 	unified) cgroups_unified ;;
 	esac
-	return 0
 }
 
 restorecon_cgroups()
@@ -143,7 +142,6 @@ restorecon_cgroups()
 		restorecon -rF /sys/fs/cgroup >/dev/null 2>&1
 		eend $?
 	fi
-	return 0
 }
 
 start()
@@ -153,5 +151,6 @@ start()
 		mount_cgroups
 		restorecon_cgroups
 	fi
+
 	return 0
 }
diff --git a/init.d/user.in b/init.d/user.in
index ea416e5ce..1526599a4 100644
--- a/init.d/user.in
+++ b/init.d/user.in
@@ -28,4 +28,13 @@ start_pre() {
 		eerror "symbolic links to it for the users you want to start"
 		return 1
 	fi
+
+	if [ -d "$cgroup_path" ]; then
+		local user_cgroup=${cgroup_path}/daemons
+
+		mkdir "$user_cgroup"
+		chown "$user:$user" "$user_cgroup"
+
+		cgroup_path="${cgroup_path}/system"
+	fi
 }
diff --git a/sh/rc-cgroup.sh b/sh/cgroups.sh
similarity index 62%
rename from sh/rc-cgroup.sh
rename to sh/cgroups.sh
index f10e328c1..854581d50 100644
--- a/sh/rc-cgroup.sh
+++ b/sh/cgroups.sh
@@ -11,17 +11,97 @@
 extra_stopped_commands="${extra_stopped_commands} cgroup_cleanup"
 description_cgroup_cleanup="Kill all processes in the cgroup"
 
-cgroup_find_path()
+cgroup_root="/sys/fs/cgroup"
+if [ "${rc_cgroup_mode:-unified}" = hybrid ]; then
+	cgroup_root="/sys/fs/cgroup/unified"
+fi
+
+# use 'rc' for the supervision root cgroup to avoid issues with our old cgroup v1 style
+cgroup_path="${cgroup_root}/rc/${RC_SVCNAME}"
+
+if [ -d "/sys/fs/cgroup/openrc.${RC_SVCNAME}" ]; then
+	cgroup_path="${cgroup_root}/openrc.${RC_SVCNAME}"
+fi
+
+if yesno "$RC_USER_SERVICES" && [ -d "${cgroup_path}/daemons" ]; then
+	cgroup_path="${cgroup_path}/daemons"
+fi
+
+cgroup_running()
 {
-	local OIFS name dir result
-	[ -n "$1" ] || return 0
-	OIFS="$IFS"
-	IFS=":"
-	while read -r _ name dir; do
-		[ "$name" = "$1" ] && result="$dir"
-	done < /proc/1/cgroup
-	IFS="$OIFS"
-	printf "%s" "${result}"
+	[ -d "${cgroup_path}" ] ||
+		[ -d "/sys/fs/cgroup/openrc.${RC_SVCNAME}" ] ||
+		[ -d "/sys/fs/cgroup/unified/openrc.${RC_SVCNAME}" ] ||
+		[ -d "/sys/fs/cgroup/openrc/${RC_SVCNAME}" ] # cgroup v1, deperecated
+}
+
+cgroup_add_service()
+{
+	if [ "${rc_cgroup_mode:-unified}" != unified ]; then
+		eerror "cgroups v1 is deprecated. Please unset rc_cgroup_mode and reboot."
+
+		if [ ! -w /sys/fs/cgroup ]; then
+			eerror "No permission to apply cgroup settings"
+			return 1
+		fi
+
+		# relocate starting process to the top of the cgroup
+		# it prevents from unwanted inheriting of the user
+		# cgroups. But may lead to a problems where that inheriting
+		# is needed.
+		for d in /sys/fs/cgroup/* ; do
+			[ -w "${d}"/tasks ] && printf "%d" 0 > "${d}"/tasks
+		done
+
+		openrc_cgroup=/sys/fs/cgroup/openrc
+		if [ -d "$openrc_cgroup" ]; then
+			cgroup="$openrc_cgroup/$RC_SVCNAME"
+			mkdir -p "$cgroup"
+			[ -w "$cgroup/tasks" ] && printf "%d" 0 > "$cgroup/tasks"
+		fi
+
+		if [ "${rc_cgroup_mode}" != hybrid ]; then
+			return 0
+		fi
+	fi
+
+	mountinfo -q "${cgroup_root}" || return 0
+
+	if [ ! -w "${cgroup_root}" ]; then
+		eerror "No permission to apply cgroup settings"
+		return 1
+	fi
+
+	[ ! -d "${cgroup_path}" ] && mkdir -p "${cgroup_path}"
+	[ -f "${cgroup_path}"/cgroup.procs ] && printf 0 > "${cgroup_path}"/cgroup.procs
+}
+
+cgroup_remove()
+{
+	[ ! -d "${cgroup_path}" ] || [ ! -e "${cgroup_path}"/cgroup.events ] && return 0
+
+	local key populated value
+
+	while read -r key value; do
+		[ "$key" = populated ] && [ "$value" = 1 ] && return 0
+	done < "${cgroup_path}/cgroup.events"
+
+	rmdir "${cgroup_path}"
+}
+
+cgroup_set_limits()
+{
+	[ "${rc_cgroup_mode:-unified}" != unified ] && cgroup1_set_limits
+	mountinfo -q "${cgroup_root}" || return 0
+
+	[ -z "${rc_cgroup_settings}" ] && return 0
+
+	echo "${rc_cgroup_settings}" | while read -r key value; do
+		[ -z "${key}" ] || [ -z "${value}" ] && continue
+		[ ! -f "${cgroup_path}/${key}" ] && continue
+		veinfo "${RC_SVCNAME}: cgroups: setting ${key} to ${value}"
+		printf "%s" "${value}" > "${cgroup_path}/${key}"
+	done
 }
 
 # This extracts all pids in a cgroup and puts them in the cgroup_pids
@@ -33,13 +113,14 @@ cgroup_get_pids()
 {
 	local cgroup_procs p
 	cgroup_pids=
-	cgroup_procs="$(cgroup2_find_path)"
-	if [ -n "${cgroup_procs}" ]; then
-		cgroup_procs="${cgroup_procs}/openrc.${RC_SVCNAME}/cgroup.procs"
+
+	if [ "${rc_cgroup_mode:-unified}" != legacy ]; then
+		cgroup_procs="${cgroup_path}/cgroup.procs"
 	else
 		cgroup_procs="/sys/fs/cgroup/openrc/${RC_SVCNAME}/tasks"
 	fi
 	[ -f "${cgroup_procs}" ] || return 0
+
 	while read -r p; do
 		[ "$p" -eq $$ ] && continue
 		cgroup_pids="${cgroup_pids} ${p}"
@@ -47,14 +128,65 @@ cgroup_get_pids()
 	return 0
 }
 
-cgroup_running()
+cgroup_fallback_cleanup() {
+	ebegin "Starting fallback cgroups cleanup"
+	local loops=0
+	cgroup_get_pids
+	if [ -n "${cgroup_pids}" ]; then
+		kill -s CONT ${cgroup_pids} 2> /dev/null
+		kill -s "${stopsig:-TERM}" ${cgroup_pids} 2> /dev/null
+		yesno "${rc_send_sighup:-no}" && kill -s HUP ${cgroup_pids} 2> /dev/null
+		kill -s "${stopsig:-TERM}" ${cgroup_pids} 2> /dev/null
+		cgroup_get_pids
+		while [ -n "${cgroup_pids}" ] &&
+			[ "${loops}" -lt "${rc_timeout_stopsec:-90}" ]; do
+			loops=$((loops+1))
+			sleep 1
+			cgroup_get_pids
+		done
+		if [ -n "${cgroup_pids}" ] && yesno "${rc_send_sigkill:-yes}"; then
+			kill -s KILL ${cgroup_pids} 2> /dev/null
+		fi
+	fi
+	eend $?
+}
+
+cgroup_cleanup()
+{
+	cgroup_running || return 0
+	ebegin "Starting cgroups cleanup"
+
+	if [ -f "${cgroup_path}"/cgroup.kill ]; then
+		# move ourselves to the root cgroup before killing.
+		printf "%d" 0 > "${cgroup_root}/cgroup.procs"
+		printf "%d" 1 > "${cgroup_path}"/cgroup.kill
+	else
+		cgroup_fallback_cleanup
+	fi
+
+	cgroup_remove
+	cgroup_get_pids
+	[ -z "${cgroup_pids}" ]
+	eend $? "Unable to stop all processes"
+	return 0
+}
+
+## deprecated
+
+cgroup1_find_path()
 {
-	[ -d "/sys/fs/cgroup/unified/${RC_SVCNAME}" ] ||
-			[ -d "/sys/fs/cgroup/${RC_SVCNAME}" ] ||
-			[ -d "/sys/fs/cgroup/openrc/${RC_SVCNAME}" ]
+	local OIFS name dir result
+	[ -n "$1" ] || return 0
+	OIFS="$IFS"
+	IFS=":"
+	while read -r _ name dir; do
+		[ "$name" = "$1" ] && result="$dir"
+	done < /proc/1/cgroup
+	IFS="$OIFS"
+	printf "%s" "${result}"
 }
 
-cgroup_set_values()
+cgroup1_set_values()
 {
 	[ -n "$1" ] && [ -n "$2" ] && [ -d "/sys/fs/cgroup/$1" ] || return 0
 
@@ -98,25 +230,7 @@ cgroup_set_values()
 	return 0
 }
 
-cgroup_add_service()
-{
-    # relocate starting process to the top of the cgroup
-    # it prevents from unwanted inheriting of the user
-    # cgroups. But may lead to a problems where that inheriting
-    # is needed.
-	for d in /sys/fs/cgroup/* ; do
-		[ -w "${d}"/tasks ] && printf "%d" 0 > "${d}"/tasks
-	done
-
-	openrc_cgroup=/sys/fs/cgroup/openrc
-	if [ -d "$openrc_cgroup" ]; then
-		cgroup="$openrc_cgroup/$RC_SVCNAME"
-		mkdir -p "$cgroup"
-		[ -w "$cgroup/tasks" ] && printf "%d" 0 > "$cgroup/tasks"
-	fi
-}
-
-cgroup_set_limits()
+cgroup1_set_limits()
 {
 	local blkio="${rc_cgroup_blkio:-$RC_CGROUP_BLKIO}"
 	[ -n "$blkio" ] && cgroup_set_values blkio "$blkio"
@@ -151,104 +265,3 @@ cgroup_set_limits()
 	return 0
 }
 
-cgroup2_find_path()
-{
-	if grep -qw cgroup2 /proc/filesystems; then
-		case "${rc_cgroup_mode:-unified}" in
-			hybrid) printf "/sys/fs/cgroup/unified" ;;
-			unified) printf "/sys/fs/cgroup" ;;
-		esac
-	fi
-		return 0
-}
-
-cgroup2_remove()
-{
-	local cgroup_path rc_cgroup_path
-	cgroup_path="$(cgroup2_find_path)"
-	[ -z "${cgroup_path}" ] && return 0
-	rc_cgroup_path="${cgroup_path}/openrc.${RC_SVCNAME}"
-	[ ! -d "${rc_cgroup_path}" ] ||
-		[ ! -e "${rc_cgroup_path}"/cgroup.events ] &&
-		return 0
-	grep -qx "$$" "${rc_cgroup_path}/cgroup.procs" &&
-		printf "%d" 0 > "${cgroup_path}/cgroup.procs"
-	local key populated vvalue
-	while read -r key value; do
-		case "${key}" in
-			populated) populated=${value} ;;
-			*) ;;
-		esac
-	done < "${rc_cgroup_path}/cgroup.events"
-	[ "${populated}" = 1 ] && return 0
-	rmdir "${rc_cgroup_path}"
-	return 0
-}
-
-cgroup2_set_limits()
-{
-	local cgroup_path
-	cgroup_path="$(cgroup2_find_path)"
-	[ -z "${cgroup_path}" ] && return 0
-	mountinfo -q "${cgroup_path}"|| return 0
-	rc_cgroup_path="${cgroup_path}/openrc.${RC_SVCNAME}"
-	[ ! -d "${rc_cgroup_path}" ] && mkdir "${rc_cgroup_path}"
-	[ -f "${rc_cgroup_path}"/cgroup.procs ] &&
-		printf 0 > "${rc_cgroup_path}"/cgroup.procs
-	[ -z "${rc_cgroup_settings}" ] && return 0
-	echo "${rc_cgroup_settings}" | while read -r key value; do
-		[ -z "${key}" ] && continue
-		[ -z "${value}" ] && continue
-		[ ! -f "${rc_cgroup_path}/${key}" ] && continue
-		veinfo "${RC_SVCNAME}: cgroups: setting ${key} to ${value}"
-		printf "%s" "${value}" > "${rc_cgroup_path}/${key}"
-	done
-	return 0
-}
-
-cgroup2_kill_cgroup() {
-	local cgroup_path
-	cgroup_path="$(cgroup2_find_path)"
-	[ -z "${cgroup_path}" ] && return 1
-	rc_cgroup_path="${cgroup_path}/openrc.${RC_SVCNAME}"
-	if [ -f "${rc_cgroup_path}"/cgroup.kill ]; then
-		printf "%d" 1 > "${rc_cgroup_path}"/cgroup.kill
-	fi
-	return
-}
-
-cgroup_fallback_cleanup() {
-	ebegin "Starting fallback cgroups cleanup"
-	local loops=0
-	cgroup_get_pids
-	if [ -n "${cgroup_pids}" ]; then
-		kill -s CONT ${cgroup_pids} 2> /dev/null
-		kill -s "${stopsig:-TERM}" ${cgroup_pids} 2> /dev/null
-		yesno "${rc_send_sighup:-no}" &&
-			kill -s HUP ${cgroup_pids} 2> /dev/null
-		kill -s "${stopsig:-TERM}" ${cgroup_pids} 2> /dev/null
-		cgroup_get_pids
-		while [ -n "${cgroup_pids}" ] &&
-			[ "${loops}" -lt "${rc_timeout_stopsec:-90}" ]; do
-			loops=$((loops+1))
-			sleep 1
-			cgroup_get_pids
-		done
-		if [ -n "${cgroup_pids}" ] && yesno "${rc_send_sigkill:-yes}"; then
-			kill -s KILL ${cgroup_pids} 2> /dev/null
-		fi
-	fi
-	eend $?
-}
-
-cgroup_cleanup()
-{
-	cgroup_running || return 0
-	ebegin "Starting cgroups cleanup"
-	cgroup2_kill_cgroup || cgroup_fallback_cleanup
-	cgroup2_remove
-	cgroup_get_pids
-	[ -z "${cgroup_pids}" ]
-	eend $? "Unable to stop all processes"
-	return 0
-}
diff --git a/sh/meson.build b/sh/meson.build
index a229600fa..95334570a 100644
--- a/sh/meson.build
+++ b/sh/meson.build
@@ -29,7 +29,7 @@ scripts_config = [
 
 if os == 'linux'
   sh += [
-    'rc-cgroup.sh',
+    'cgroups.sh',
     ]
   scripts_config += [
     'binfmt.sh.in',
diff --git a/sh/openrc-run.sh.in b/sh/openrc-run.sh.in
index f2a2b1717..b6ccd8f31 100644
--- a/sh/openrc-run.sh.in
+++ b/sh/openrc-run.sh.in
@@ -57,7 +57,7 @@ sourcex "@LIBEXECDIR@/sh/functions.sh"
 sourcex "@LIBEXECDIR@/sh/rc-functions.sh"
 case $RC_SYS in
 	PREFIX|SYSTEMD-NSPAWN) ;;
-	*) yesno "$RC_USER_SERVICES" || sourcex -e "@LIBEXECDIR@/sh/rc-cgroup.sh";;
+	*) sourcex -e "@LIBEXECDIR@/sh/cgroups.sh";;
 esac
 
 # Support LiveCD foo
@@ -280,20 +280,12 @@ status|describe) ;;
 	[ -n "${rc_ulimit:-$RC_ULIMIT}" ] && apply_ulimits ${rc_ulimit:-$RC_ULIMIT}
 
 	# Apply cgroups settings if defined
-	if [ "$(command -v cgroup_add_service)" = "cgroup_add_service" ]; then
-		if grep -qs /sys/fs/cgroup /proc/1/mountinfo
-		then
-			if [ -d /sys/fs/cgroup -a ! -w /sys/fs/cgroup ]; then
-				eerror "No permission to apply cgroup settings"
-				break
-			fi
-		fi
-		cgroup_add_service
-	fi
+	[ -n "$cgroup_path" ] || break
+
+	cgroup_add_service
+	cgroup_set_limits
 
-	[ "$(command -v cgroup_set_limits)" = "cgroup_set_limits" ] && cgroup_set_limits
-	[ "$(command -v cgroup2_set_limits)" = "cgroup2_set_limits" ] && cgroup2_set_limits
-	;;
+	break
 esac
 
 eval "printf '%s\n' $required_dirs" | while read _d; do