Record of Employment (ROE)
A Record of Employment (ROE) is a mandatory federal document that Canadian employers must provide to employees when they stop working or experience an interruption of earnings.
The ROE is a critical document in the Canadian employment landscape, serving as the official record that employees need to apply for Employment Insurance (EI) benefits through Service Canada. Whether an employee is laid off, takes parental leave, goes on sick leave, or separates from employment for any reason, employers have a legal obligation to complete and submit this form accurately and on time.
For HR professionals and business owners across Canada, understanding when and how to issue a Record of Employment (ROE) is essential for maintaining compliance with federal regulations and supporting employees during employment transitions.
When Must Employers Issue a Record of Employment (ROE)?
Employers are required to issue an ROE whenever an employee experiences an interruption of earnings. This includes several common scenarios:
- Termination or layoff: When employment ends permanently or temporarily
- Leaves of absence: Including maternity, parental, sick leave, or compassionate care leave
- Reduction in earnings: When regular weekly earnings decrease by more than 60% for a period
- Job sharing or work sharing: When participating in these programs
- Retirement: When an employee retires from their position
The ROE must be issued within five calendar days of the interruption of earnings or the date the employer becomes aware that an interruption has occurred.
Key Information Required on a Record of Employment (ROE)
The ROE captures essential information about the employment relationship and the reason for the interruption of earnings. Key details include:
- Employer and employee identification information
- First and last day of work for the period
- Total insurable hours worked
- Total insurable earnings
- The reason for issuing the ROE (code indicating separation reason)
- Pay period information and earnings breakdown
Accuracy is paramount, as errors can delay EI benefit processing and may result in penalties for employers. Service Canada maintains strict requirements for ROE completion and retention.
Electronic vs. Paper ROE Submission
Most Canadian employers are required to submit ROEs electronically through the ROE Web service, which provides faster processing and reduces errors. Electronic filing is mandatory for employers who issue more than one ROE in a calendar year or who have remitted $3 million or more in total EI premiums in the previous calendar year.
Paper ROEs are only permitted for small employers who issue one or fewer ROEs annually and fall below the premium threshold. Electronic submission offers significant advantages, including immediate confirmation of receipt, reduced administrative burden, and faster access to benefits for employees.
Record of Employment (ROE) Compliance and Best Practices
Maintaining ROE compliance requires systematic processes and attention to detail. Employers should implement clear procedures for identifying when interruptions of earnings occur, gathering accurate information, and meeting submission deadlines. Keeping thorough payroll records is essential, as ROE information must be supported by documentation that employers retain for six years.
Training HR staff and payroll administrators on ROE requirements helps prevent costly errors and ensures employees receive timely access to EI benefits. Many HR management systems, including specialized Canadian payroll software, offer integrated ROE generation features that streamline the process and improve accuracy.
Understanding and properly managing the Record of Employment process is a fundamental responsibility for Canadian employers. By establishing reliable procedures and leveraging appropriate tools, HR professionals can ensure compliance while supporting employees through various employment transitions.