What is a Record of Employment (ROE)?

If you’re running a business in Canada, the Record of Employment (ROE) is likely the most important document you’ll ever handle. It isn’t just a piece of paperwork; it’s the lifeline that connects your former or departing team members to the benefits they’ve earned through their hard work. Getting it right isn’t just about ticking a box: it’s about supporting the people who built your business while keeping your company on the right side of federal law.

Ready to take the stress out of ROE compliance?

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What is a Record of Employment (ROE)?

An ROE is the federal document Canadian employers provide whenever an employee experiences what the government calls an “interruption of earnings”. Think of it as the master key for Service Canada. They use this single document to determine if someone is eligible for Employment Insurance (EI), how much they’ll receive and how long those payments will last.

Every year, Canadian employers issue over 9 million of these. That’s a lot of data moving through the system, and the stakes are high. One of the biggest misconceptions we see is the idea that you only need to issue one if an employee plans to claim benefits. That’s simply not true. You’re legally obligated to issue an ROE regardless of whether the employee intends to file for EI. The obligation is triggered by the interruption itself, not by the employee’s future plans.

At its core, the ROE is a record of a person’s work history with you; their insurable hours and earnings. It’s a heavy responsibility, but when handled correctly, it ensures a smooth transition for your staff and keeps your business in the clear.

When does an employer have to issue an ROE?

Understanding the “when” is just as important as the “what.” You don’t want to be scrambling at the last minute or, worse, missing a deadline because you weren’t sure if a situation required a filing. In Canada, the requirement to issue an ROE is governed by two primary triggers that define an interruption of earnings.

The 7-day rule

This is the most common trigger. If an employee has had (or is expected to have) seven consecutive calendar days with no work and no insurable earnings from your company, you’ve hit the threshold. This usually happens during layoffs or when a contract ends.

The 60% rule

This one is a bit more nuanced. An interruption also occurs when an employee’s weekly earnings fall below 60% of their normal weekly pay because of illness, injury, pregnancy or the need to care for a family member. This ensures that people who are still technically “employed” but unable to work their full hours can still access the financial support they need.

Beyond these rules, you’ll need to issue an ROE in several standard scenarios:

• Termination: Whether it’s with cause or without cause.
• Resignation: When an employee decides to move on.
• Layoffs: Both temporary and permanent.
• Leaves of absence: Any unpaid leave where the employee is expected to return.
• Maternity and parental leave: Critical for ensuring new parents get their benefits.
• Retirement: The final sign-off on a career.

There are also “hidden” triggers that catch people off guard. You must issue an ROE if you change your pay period type (e.g., moving from biweekly to weekly), if an employee transfers between company divisions that use different payroll accounts or if Service Canada specifically asks you for one.

Do you need to issue an ROE for every type of employee?

In short: yes. Whether your team member is full-time, part-time, casual, seasonal or on a fixed-term contract, they are entitled to an ROE when their earnings are interrupted. If you’ve been paying EI premiums on their behalf, they need that record.

The only real exception involves independent contractors. Since they aren’t employees and their earnings aren’t insurable under the EI program, you don’t issue an ROE for them. However, be careful with commission-based roles or real estate agents. The definition of an interruption of earnings can be different for these workers, so it’s always worth checking the specific Service Canada guidelines if you’re dealing with specialized roles.

ROE deadlines: How long does an employer have to issue an ROE?

Missing a deadline is the fastest way to invite a phone call from a frustrated former employee or a letter from Service Canada. Compliance is all about timing. The rules vary depending on whether you’re filing electronically or using the old-school paper method.

Electronic ROEs (The gold standard)

Most businesses use ROE Web because it’s faster and more secure. For weekly, biweekly or semi-monthly pay periods, you must submit the ROE within five calendar days after the end of the pay period where the interruption occurred.

If you pay monthly or have 13 pay periods a year, the deadline is the earlier of:

• Five calendar days after the end of the pay period.
• Fifteen calendar days after the first day of the interruption.

Paper ROEs

If you’re still using the triplicate paper forms, the window is even tighter. You have five calendar days from the first day of the interruption (or the day you became aware of it) to get that form in the mail.

Pro Tip: Keep the 2026 updates in mind. For this year, the maximum insurable earnings threshold has risen to $68,900, up from $65,700 in 2025. This is a key figure for your Box 15B calculations.

What are the penalties for not issuing an ROE on time?

We aren’t here to scare you, but the government takes this seriously. Failing to issue an ROE or, even worse, providing false information, is an offence under the Employment Insurance Act. You could be looking at fines of up to $2,000, six months in jail or both.

Beyond the federal penalties, there’s civil liability to consider. If a former employee can’t pay their rent because you dragged your feet on their ROE, they could take you to court for damages. It’s a headache no business owner needs. The best way to avoid this? Make ROE issuance a non-negotiable part of your employee offboarding checklist.

How to complete an ROE: A block-by-block guide

This is where the rubber meets the road. Filing an ROE involves filling out several “blocks,” and while some are self-explanatory, others are notorious for causing errors. Let’s break down the heavy hitters so you can file with confidence.

Block 10: First day worked

This isn’t necessarily the day they signed their contract. It’s the first day they actually received insurable earnings. If you’ve issued an ROE for this person before (perhaps for a previous leave), this date should be the first day they worked after that last interruption.

Block 11: Last day for which paid

This is a common trap. It isn’t always the last day the person physically stood in your office or shop. It’s the last day they were actually paid. If you’re providing salary continuance after a termination, do not issue the ROE until that period ends; Block 11 will be the final day of that continuance.

Block 12: Final pay period ending date

This date marks the end of the pay period that includes the date you put in Block 11. It can never be earlier than the date in Block 11.

Block 15A: Total insurable hours

You need to calculate the total insurable hours for the last 52 weeks or since the last ROE, whichever is shorter. This includes all hours worked, including overtime, as long as they were paid.

Block 15B: Total insurable earnings

This covers the total insurable earnings for the last 27 pay periods. Remember the 2026 cap of $68,900. If they’ve worked fewer than 27 periods, just include what they have.

Block 15C: Insurable earnings by pay period

If you’re filing electronically, you’ll need to list the earnings for each specific pay period, starting with the most recent.

Block 17: Other monies

This is for the “extras” — vacation pay, severance or termination pay. Generally, you don’t include these in your 15B or 15C totals unless they apply to specific pay periods. They belong here in Block 17, so Service Canada knows how to allocate them.

Block 18: Comments

Use this for context. It’s required for certain codes like K (Other) or Z (Compassionate Care). It’s also highly recommended for Code M (Dismissal) to specify if the termination was with or without cause.

ROE reason codes explained: the complete employer reference

The reason code is perhaps the most scrutinized part of the ROE. It tells Service Canada why the person isn’t working, which is the biggest factor in determining their eligibility for benefits. Using the wrong code can lead to delays for the employee and audits for you.

Code	Meaning	When to Use It
A	Shortage of work	Layoffs, end of seasonal work or a temporary shutdown. This is the most common code.
B	Strike or lockout	Used during labour disputes.
C	Return to school	When an employee leaves to pursue full-time education.
D	Illness or injury	When an employee can’t work for health reasons, even if they aren’t coming back.
E	Quit	Voluntary resignation. Always add a comment in Block 18 to explain why (e.g., “moving” or “new job”).
F	Maternity	Specifically for birth mothers taking maternity leave.
G	Retirement	When an employee retires.
H	Work sharing	If you have an approved Work-Sharing agreement with Service Canada.
J	Apprentice training	When an apprentice leaves for classroom training.
K	Other	Only if no other code fits. Requires an explanation in Block 18.
M	Dismissal	Any employer-initiated termination that isn’t a layoff. You must specify “with cause” or “without cause” in Block 18.
N	Leave of absence	An approved, unpaid leave where the person is expected to return.
P	Parental	For fathers, adoptive parents or mothers starting parental leave after maternity leave.
Z	Compassionate care	For employees caring for a critically ill family member.

The most commonly misused ROE codes, and why it matters

Mistakes often happen with Codes M and E. Code M (Dismissal) is a legal lightning rod. If you use Code M for a layoff, you’re telling the government the person was fired for performance or conduct, which could unfairly block their EI benefits. Using Code E (Quit) when you actually forced someone out (constructive dismissal) is a serious misrepresentation that can lead to legal trouble. If a termination is messy or contested, it’s always smart to get HR or legal advice before you hit “submit”.

Electronic vs. paper ROE: Which should you use?

While paper forms still exist, they’re effectively a relic of a slower era. Service Canada strongly prefers electronic filing through ROE Web.

Why go electronic?

• Speed: It’s almost instantaneous.
• Accuracy: The system catches basic math errors before you submit.
• No paper handling: You don’t have to give the employee a copy; they can see it in their “My Service Canada Account”.
• Batching: You can submit up to 1,200 ROEs at once if you’re doing a large layoff.

Paper ROEs require you to manage a triplicate form: one for the employee, one for the government and one for your filing cabinet. They’re slow and prone to getting lost in the mail. Unless you’re a very small operation with only one or two staff and zero tech, there’s no reason to use paper. 

Just remember that regardless of how you file, you must keep your records for six years.

Can your payroll software file ROEs automatically?

The short answer? Yes. And it’s a game-changer. Platforms like Employment Hero integrate directly with ROE Web. Instead of manually calculating hours and earnings, the software pulls the data directly from your payroll records, auto-populating the forms and significantly reducing the risk of human error.

If you’re tired of the manual grind, it might be time to explore our payroll solutions.

How to amend an ROE

Errors happen. Maybe you realized you forgot to include a final commission check, or you clicked Code E when you meant Code A. Don’t panic, just fix it quickly.

If you used ROE Web, you can simply log in, find the original ROE and submit a corrected version. The system will automatically mark it as an amendment. If you used paper, you’ll need to fill out a whole new form, write “Amended” clearly on it and mail it in.

Don’t sit on errors. Uncorrected mistakes can delay an employee’s payments and might trigger a Service Canada review of your business.

Common ROE mistakes and how to avoid them

To wrap things up, let’s look at a quick checklist of the “don’ts” that trip up even experienced HR managers:

• The “Must” Fallacy: Don’t skip an ROE just because an employee says they won’t claim EI. You still have to do it.
• Date Confusion: Don’t put the “last day worked” in Block 11 if they were actually paid for days beyond that.
• Missing Money: Don’t forget to list vacation or termination pay in Block 17.
• Vague Codes: Don’t use Code M without giving context in Block 18.
• Deadline Drifting: Don’t miss that five-day window.

The best way to stay compliant? Move away from manual spreadsheets and use a system designed for the job. Our guide to payroll in Canada can help you build a process that’s audit-proof and efficient.

Making the ROE process work for your business

Managing ROEs is a core part of being a responsible employer. It’s about more than just compliance; it’s about treating people with the respect they deserve as they move on to their next chapter. By mastering these rules, you’re not just avoiding fines: you’re building a more professional, reliable business.

Ready to streamline your Canadian payroll and compliance?