A Record of Employment (ROE) is the most important payroll document you'll issue when an employee stops working. Service Canada uses it to determine whether the employee qualifies for Employment Insurance (EI) benefits and how much they'll receive. Errors or delays in issuing a ROE can directly harm your former employee's EI claim — and expose you to penalties.
When Must You Issue a ROE?
You must issue a ROE whenever there is an interruption of earnings. This happens when an employee has 7 consecutive calendar days with no work and no insurable earnings, or when their salary drops to less than 60% of their regular weekly earnings due to a non-disciplinary reason.
Common situations requiring a ROE:
- Layoff (temporary or permanent)
- Dismissal or resignation
- Maternity or parental leave
- Illness or injury leave
- End of a contract or seasonal position
The 5-Day Rule
Electronic ROEs (submitted through Service Canada's ROE Web): 5 calendar days after the end of the pay period in which the interruption occurred.
Paper ROEs: 5 calendar days after the last day of work. Paper ROEs must be handed or mailed directly to the employee, not to Service Canada.
Missing this deadline is an offence under the Employment Insurance Act with fines up to $2,000.
Completing the ROE: Key Blocks Explained
| Block | Field | Common Error |
|---|---|---|
| Block 11 | Last day for which paid | Confusing with last physical day worked |
| Block 12 | Final pay period ending date | Leaving blank when it differs from Block 11 |
| Block 15C | Insurable earnings this period | Including non-insurable earnings (e.g., retiring allowance) |
| Block 16 | Reason for issuing | Using "A—Shortage of work" when reason is resignation |
| Block 17 | Vacation pay | Not reporting paid-out vacation as separate insurable earnings |
| Block 18 | Comments | Leaving blank when unusual circumstances apply |
Reason Codes: Choosing the Right One
Block 16 requires you to select a reason code. The most commonly used are:
- A — Shortage of work (layoff, end of contract, reduction in hours)
- B — Strike or lockout
- D — Illness or injury
- E — Quit (voluntary resignation)
- F — Maternity
- G — Mandatory retirement
- K — Other (use Block 18 to explain)
- M — Dismissal (termination for cause)
- N — Leave of absence
- P — Parental
- Z — Compassionate care
Using the wrong reason code delays your employee's EI claim and often triggers a call from Service Canada requesting a correction.
Insurable Earnings vs. Total Earnings
Not all pay is insurable. Block 15C requires only insurable earnings — amounts from which EI premiums were deducted. Amounts that are not insurable include:
- Retiring allowance (also known as severance pay)
- Tips and gratuities where the employer has no control over the amount
- Directors' fees
- Stock options (in most cases)
Electronic vs. Paper ROEs
If your payroll system is set up for electronic ROE submission (through ROE Web), Service Canada receives the ROE automatically and your employee does not need a paper copy. Most modern payroll software (Wagepoint, ADP, Ceridian, QuickBooks Payroll) supports electronic ROE submission.
If you submit electronically, do not also issue a paper ROE — this creates duplicate records and can delay the EI claim.
Amending a ROE After Submission
If you discover an error after submitting, you must amend the ROE rather than issuing a new one. Electronic amendments are made through ROE Web. Paper ROE amendments use the original serial number and the word "Amended" across the top. Never destroy or alter the original paper ROE.
Payroll Compliance Without the Stress
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