Reclassification Increase Clause Samples
The Reclassification Increase clause defines how adjustments are made to financial terms or obligations when an asset, liability, or transaction is reclassified under applicable accounting standards. In practice, this clause typically specifies the process for recalculating payments, interest, or other financial metrics if a reclassification occurs, such as when a lease is reclassified from an operating lease to a finance lease. Its core function is to ensure that both parties are treated fairly and transparently in the event of a reclassification, preventing disputes and maintaining the intended economic balance of the agreement.
Reclassification Increase. An employee selected for reclassification, within the unit, to a position with a higher salary range shall receive a minimum salary increase of nine percent (9%) for a one salary level change. For a multiple salary level change, an employee shall receive a minimum salary increase of nine percent (9%) plus three percent (3%) for each salary level change beyond the first level or the minimum of the new salary range, whichever is greater. Any reclassification salary increase will be retroactive to January 1 of the current fiscal year. Employees receiving a reclassification increase will not be eligible for a general increase within the same year.
Reclassification Increase. Whenever the duties of a position change materially and a position is reclassified, the employee in that position is reclassified, the employee in that position shall be reclassified at the same step employee is at presently or the step providing at least a 5% increase, rounded to the whole number, above his or her present salary. No change in anniversary date shall be made and no probationary period shall be served providing employee has already served his probationary period and has been performing the duties satisfactorily.