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The work ex criterion is always applicable at the time of matriculation i.e. when you start b-school, not when you submit the app. If it is not at the time of matriculation, the school will explicitly mention by when say March 2012, Aug 2012 or whatever..

Being a reapplicant is not an out n out disadvantage. It's really a double edged sword. The pros are
- the school knows that this applicant is really serious about the school and hence is reapplying.
- the essays give you an opportunity to demonstrate a progression in the maturity of thinking since the schools will definitely read your previous app as well. The other first-time applicants don't have this advantage.
- the reapplicant essay - This is where a reapplicant has to really differentiate himself/herself from the rest of the crowd. Doing something great in the time since last application shows the school that the individual is motivated and results-driven and can accomplish X or Y in a definite period of time
The cons are
- well, really again the reapplicant essay - If the applicant hasn't worked enough and doesn't demonstrate significant improvement, the decision will be a no-brainer.

I truly believe that no school is hostile or cold to reapplicants. At the end of the day schools want to ensure that they get the best possible applicants in and they couldn't care two hoots when the class graduates as to who was originally an applicant or a reapplicant.