On Reclassification Clause Samples
The "On Reclassification" clause defines the procedures and consequences that apply when an asset, liability, or other item is reclassified under the agreement. Typically, this clause outlines the circumstances under which reclassification may occur, such as changes in accounting standards or regulatory requirements, and specifies how such changes should be reported or handled by the parties. Its core function is to ensure that both parties are aware of and agree on the process for addressing reclassifications, thereby reducing confusion and maintaining consistency in financial reporting or contractual obligations.
On Reclassification. No probationary period shall be required of an employee in a position which is reclassified unless the employee is on probation; if on probation the employee shall continue to serve the probationary period minus service accumulated to that point. Upon successful completion of the probationary period, the employee shall become a permanent employee in the revised classification. If a permanent employee on probation in a reclassified position fails probation, the employee shall revert to the position in which the employee last held permanent status.