Record of Employment (ROE) (Canada)
A Canadian government form (Service Canada) that employers must issue when an employee experiences an interruption of earnings, used to determine Employment Insurance eligibility.
- What Is a Record of Employment (ROE)?
- When Must an ROE Be Issued?
- How to Complete an ROE: Block by Block
- ROE Reason Codes Explained
- Filing ROEs Through ROE Web (Service Canada)
- Penalties for Non-Compliance
- Integrating ROE Filing with Payroll Systems
- ROE Best Practices for Canadian Employers
- Frequently Asked Questions About the Record of Employment (ROE)
What Is a Record of Employment (ROE)?
Key Takeaways
- ✓The Record of Employment (ROE) is a Canadian government form that employers must issue when an employee has an interruption of earnings.
- ✓It's the key document Service Canada uses to determine whether the employee qualifies for Employment Insurance (EI) benefits and how much they'll receive.
- ✓Over 10 million ROEs are issued annually in Canada, with 96% filed electronically (Service Canada, 2024).
- ✓Employers must file electronic ROEs within 5 calendar days of the end of the pay period in which the interruption occurs.
- ✓Penalties for late or missing ROEs range from $2,000 to $12,000 per violation, and repeat offenders face criminal prosecution.
The Record of Employment (ROE) is a standardized form used in Canada's Employment Insurance (EI) system. Every time an employee experiences an interruption of earnings, the employer must complete and file an ROE with Service Canada. The ROE provides the data Service Canada needs to process the employee's EI claim: how long they worked, how much they earned, why they stopped working, and when the interruption began. An interruption of earnings doesn't only mean termination. It includes layoffs, resignations, leave of absence (maternity, parental, medical, compassionate care), seasonal work stoppages, retirement, and any other event that creates a gap of 7 or more consecutive calendar days with no work and no insurable earnings. The ROE is not optional. It's a legal obligation under the Employment Insurance Act and the Insurable Earnings and Collection of Premiums Regulations. Employers who fail to issue ROEs on time face penalties ranging from $2,000 to $12,000 per violation. In cases of persistent non-compliance, the Canada Revenue Agency (CRA) can pursue criminal charges.
Why the ROE matters
For employees, the ROE determines whether they can access EI benefits. Without it, their EI application stalls. Service Canada can't calculate benefit amounts, qualifying periods, or waiting periods without the earnings and hours data from the ROE. For employers, the ROE is a compliance obligation with serious consequences for non-compliance. It's also a permanent record: Service Canada retains ROE data indefinitely and uses it for audits, fraud investigations, and statistical analysis.
Who must issue an ROE?
Every employer in Canada who has employees with insurable employment must issue ROEs. This includes corporations, sole proprietorships, partnerships, non-profits, government agencies, and Crown corporations. The obligation applies regardless of company size. A small business with 1 employee and a multinational with 50,000 Canadian employees have the same obligation. Employers of record (EORs) and professional employer organizations (PEOs) issue ROEs for employees on their payroll, even if those employees work at a client site.
When Must an ROE Be Issued?
The ROE must be issued whenever an employee has an 'interruption of earnings.' Understanding what triggers this obligation is essential for compliance.
Definition of interruption of earnings
An interruption of earnings occurs when an employee has had or is expected to have 7 consecutive calendar days with no work and no insurable earnings from the employer. This includes the day after the last day worked. Common triggers include termination (with or without cause), layoff (temporary or permanent), resignation, leave of absence (maternity, parental, medical, compassionate care, family caregiver), retirement, strike or lockout, work-sharing agreement, seasonal or contract end, and reduction to zero hours (for variable-hour employees). An interruption of earnings does NOT occur when the employee simply changes roles within the same company, takes short vacation (under 7 days) with vacation pay, or has a brief gap in shifts that doesn't span 7 consecutive days without earnings.
Filing deadlines
Electronic ROEs (filed through ROE Web): must be filed within 5 calendar days after the end of the pay period in which the interruption of earnings occurs. This is the most common method, used for 96% of ROEs. Paper ROEs (Form Record of Employment): must be issued within 5 calendar days after the interruption of earnings. Paper ROEs are increasingly rare and only used by employers who don't have internet access or are filing for the first time. Service Canada strongly encourages electronic filing. The deadline is strict. If the pay period ends on Friday and the employee's last day was that Wednesday, the employer has until the following Wednesday (5 calendar days after the pay period end) to file the electronic ROE.
How to Complete an ROE: Block by Block
The ROE has specific blocks (fields) that must be completed accurately. Errors in any block can delay the employee's EI claim and trigger Service Canada inquiries.
| Block | Field Name | What to Enter | Common Errors |
|---|---|---|---|
| Block 10 | First Day Worked | The first day the employee actually worked (not the hire date if different) | Entering the hire date when the employee started working later |
| Block 11 | Last Day for Which Paid | The last day the employee earned insurable earnings (including vacation pay, stat holiday pay) | Entering the last physical day worked when paid vacation extends the date |
| Block 12 | Final Pay Period Ending Date | The end date of the last pay period in which the employee had insurable earnings | Confusing this with the last day worked |
| Block 15A | Total Insurable Hours | Total hours in the qualifying period (varies by pay type: hourly, salaried, commission) | Not including paid vacation hours, stat holiday hours, or overtime |
| Block 15B | Total Insurable Earnings | Gross insurable earnings in the qualifying period before deductions | Deducting EI premiums, CPP, or income tax from the figure |
| Block 15C | Insurable Earnings by Pay Period | Gross earnings for each pay period in the qualifying period (up to 27 periods) | Entering net pay instead of gross, or missing pay periods with zero earnings |
| Block 16 | Reason for Issuing (ROE Code) | A single letter code indicating why the interruption occurred (see ROE codes below) | Using the wrong code, which affects EI eligibility determination |
| Block 17 | Comments | Additional details about the interruption (required for certain codes like E, M, N) | Leaving blank when comments are mandatory for the selected code |
ROE Reason Codes Explained
Block 16 requires a single-letter code that tells Service Canada why the employee stopped working. The code directly affects EI eligibility. Using the wrong code can delay or deny the employee's claim.
| Code | Reason | EI Eligibility Impact | When to Use |
|---|---|---|---|
| A | Shortage of work / End of contract or season | Eligible for regular EI benefits | Layoff, contract end, seasonal work stoppage |
| B | Strike or lockout | Not eligible during strike; eligible after | Work stoppage due to labor dispute |
| D | Illness or injury | Eligible for EI sickness benefits | Employee stops working due to medical reasons |
| E | Quit / Voluntary departure | Must demonstrate just cause to receive EI | Employee resigns. Comments in Block 17 required. |
| F | Maternity leave | Eligible for EI maternity benefits | Employee begins maternity leave |
| G | Retirement | Generally not eligible for regular EI | Employee retires voluntarily |
| K | Other | Depends on circumstances | Use when no other code fits. Must explain in Block 17. |
| M | Dismissal / Termination for cause | Employee must demonstrate they weren't at fault to receive EI | Employee fired for misconduct. Detailed comments in Block 17 required. |
| N | Leave of absence | Depends on leave type | Parental, compassionate care, family caregiver leave. Specify in Block 17. |
| P | Parental leave | Eligible for EI parental benefits | Employee begins parental leave |
| Z | Compassionate care / Family caregiver | Eligible for EI compassionate care benefits | Employee takes leave to care for critically ill or injured family member |
Filing ROEs Through ROE Web (Service Canada)
ROE Web is Service Canada's online portal for filing, viewing, and amending ROEs. It's the primary filing method used by 96% of Canadian employers.
How to access ROE Web
Employers access ROE Web through their My Service Canada Account (MSCA) for Business or through their payroll provider's integration. To register, the employer needs their Business Number (BN) issued by CRA, a payroll program account number (RP number), and the employer's legal name and address. Once registered, authorized users can create, submit, view, print, and amend ROEs. Most Canadian payroll software (ADP, Ceridian Dayforce, Wagepoint, PaySimply, Knit People) integrates with ROE Web for direct submission.
Electronic filing process
Step 1: Log into ROE Web through MSCA for Business. Step 2: Select 'Create ROE' and choose the employee from your roster (or enter their details manually). Step 3: Complete all required blocks. The system validates entries in real time and flags errors. Step 4: Review the completed ROE. The system shows a preview of the form as it will appear to Service Canada. Step 5: Submit. The ROE is transmitted to Service Canada immediately and becomes available to the employee within 48 hours. Step 6: Print or save a confirmation copy for your records. ROE Web assigns a unique serial number to each submitted ROE.
Amending a filed ROE
If you discover an error after filing, you can amend the ROE through ROE Web. Select the original ROE, click 'Amend,' make corrections, and resubmit. The amended version replaces the original in Service Canada's system. Common amendment reasons include: incorrect earnings figures, wrong ROE code (Block 16), incorrect dates (Blocks 10, 11, 12), or missing pay periods in Block 15C. Amendments should be filed as soon as the error is discovered. If the employee's EI claim has already been processed based on incorrect information, Service Canada will recalculate benefits based on the amended ROE.
Penalties for Non-Compliance
Service Canada and CRA take ROE compliance seriously. The penalties escalate with the severity and frequency of violations.
Administrative penalties
Employers who fail to issue ROEs on time, submit inaccurate information, or refuse to issue ROEs face penalties under the Employment Insurance Act. First offense: warning letter and education. Repeated late filings: penalties ranging from $2,000 to $12,000 per violation, depending on the size of the employer and the number of affected employees. The penalty amount is discretionary and considers the employer's history, the impact on employees, and whether the non-compliance was willful.
Criminal prosecution
In cases of deliberate fraud or persistent willful non-compliance, CRA can pursue criminal charges under Section 106 of the Employment Insurance Act. This includes knowingly filing false ROEs (inflating earnings to help an employee get higher EI benefits, or using incorrect codes to prevent an employee from getting benefits). Conviction can result in fines of up to $25,000 and imprisonment of up to 6 months.
Impact on employees
When employers don't file ROEs on time, employees can't apply for EI benefits. This creates financial hardship, especially for employees who were laid off or are on medical leave. Employees can request Service Canada to contact the employer directly. If the employer still doesn't comply, Service Canada can generate an ROE based on available payroll data and the employee's testimony, but this process takes weeks and delays benefit payments.
Integrating ROE Filing with Payroll Systems
Most modern Canadian payroll platforms automate ROE generation and submission, reducing errors and ensuring deadline compliance.
| Payroll Platform | ROE Integration | Key Feature |
|---|---|---|
| ADP Workforce Now | Direct ROE Web submission | Auto-populates from payroll data, bulk filing for large employers |
| Ceridian Dayforce | Built-in ROE generation | Triggers ROE creation automatically when employment status changes to terminated or on leave |
| Wagepoint | ROE Web integration | Simple interface for small businesses, step-by-step ROE wizard |
| Knit People | ROE creation and filing | Canadian-focused payroll with automated ROE code suggestion based on termination type |
| Humi | ROE generation within HRIS | Combined HR + payroll, auto-calculates insurable hours and earnings |
| QuickBooks Payroll (Canada) | Manual ROE creation with data pre-fill | Pulls earnings data from payroll records but requires manual submission to ROE Web |
ROE Best Practices for Canadian Employers
Following these practices ensures compliance and protects both the employer and employee.
- File ROEs electronically through ROE Web. It's faster, more secure, and gives you a permanent record. Paper ROEs are outdated and create filing risks.
- Set up automated triggers in your payroll system to generate ROEs when employment status changes. Don't rely on manual processes to remember filing deadlines.
- Train payroll staff on ROE codes (Block 16). Using the wrong code is the most common error and directly affects the employee's EI eligibility.
- For Code E (quit) and Code M (dismissal), always complete Block 17 with detailed comments. Service Canada will follow up if comments are missing for these codes.
- Include vacation pay, statutory holiday pay, and overtime in insurable earnings calculations. These are commonly missed, leading to amendments later.
- Keep records of all ROEs issued for at least 6 years (CRA's standard retention requirement for payroll records).
- When an employee is on leave (maternity, parental, medical), issue the ROE immediately, not when they return. The employee needs it to apply for EI benefits during the leave.
- If you discover an error after filing, amend the ROE through ROE Web immediately. Don't wait for Service Canada to catch it during processing.
- For seasonal employers with recurring layoffs, set up annual ROE filing calendars. Seasonal industries (agriculture, tourism, fishing, construction) have predictable ROE patterns that can be planned in advance.
Frequently Asked Questions
Do I need an ROE to apply for EI?
What if my employer used the wrong ROE code?
Is an ROE the same as a termination letter?
How many hours do I need for EI eligibility?
Can I view my ROE online?
Do employers need to issue ROEs for part-time and casual workers?
Written by Adithyan RK