H1 to H4 conversion during EAD process

[rajnirobo]

My wife's is on H1 with Desi consultant who sent an email that her H1 is being terminated after we insisted on pay checks and formal documentation.
Is it advisable to convert her status from H1 to H4 right away or wait for formal notice from USCIS about termination.
Will it have any impact on her EAD/AP in the future if we don't do the conversion?