What Is a Record of Employment (ROE) and When Do I Have to Issue One?

A Record of Employment, or ROE, is the form that tells the government why an employee's paycheques stopped and what they earned before that. You issue one when an employee has an interruption of earnings, and the deadline is short, generally five calendar days. Service Canada uses the information to help determine whether the employee qualifies for Employment Insurance (EI) benefits and how much they may receive.

What an ROE is

Service Canada is the federal service that runs EI. EI is the program that pays benefits to workers who lose their job or take certain leaves. The ROE records the employee's insurable hours and insurable earnings, which are the hours and earnings EI premiums are charged on, along with the dates they worked and the reason their earnings stopped.

Without a correct ROE, the employee's claim can stall, and the delay lands on someone who is already between paycheques.

When you have to issue one

The trigger is an interruption of earnings. That includes:

• The end of employment, whether the employee quit, was let go or reached the end of a contract.
• A layoff, including a seasonal one.
• A leave such as pregnancy, parental leave, illness, injury or leave without pay.
• A stretch of seven or more consecutive days with no work and no insurable earnings from you.

The seven-day rule has exceptions, including for some casual and part-time work arrangements. Service Canada also has special rules for certain leaves, so check its ROE guidance when the situation isn't straightforward.

An ROE is generally required whether or not the employee plans to apply for EI.

The deadline

The deadline depends on how you file:

• Electronic, weekly, biweekly or semi-monthly pay: five calendar days after the end of the pay period in which the interruption happened. For example, if that pay period ends March 15, the ROE is due March 20.
• Electronic, monthly pay or 13 pay periods a year: whichever comes first, five calendar days after the end of that pay period or 15 calendar days after the first day of the interruption.
• Paper: five calendar days after the first day of the interruption, or after the day you become aware of it.

Calendar days include weekends and holidays. Service Canada can penalize late or missing ROEs.

How ROEs get filed

There are three routes: Service Canada's online ROE Web service, your payroll provider's secure connection to Service Canada, or a paper form. When an ROE is filed electronically, the employee can generally view it in their My Service Canada Account. The exact steps depend on how you run payroll, so ask your payroll provider or accountant how yours is set up.

Mistakes employers make

• Waiting until the employee asks. The duty to issue the ROE doesn't depend on a request.
• Forgetting that leaves count. A long unpaid or medical leave can require an ROE even though no one has left.
• Choosing the wrong reason for the interruption. The reason is what Service Canada reads first, and a wrong one can delay or change the claim.
• Reporting hours or earnings that don't match the payroll records. The ROE should agree with what you paid.
• Using the wrong deadline. Paper and electronic filing, and different pay schedules, have different clocks.
• Holding the ROE back during a dispute. The ROE isn't a bargaining chip.

An ROE is only as good as your payroll records. If you're still setting up payroll, start with do I need a payroll account to hire my first employee? and see what an employer pays on top of wages for the costs that come with each employee.

The Guided plan's dashboard keeps your CRA deadlines and monthly close checklist in front of you, so payroll records stay current instead of being rebuilt on the day someone leaves. If you're not sure whether a leave triggers an ROE, ask Margot (bottom right of this page, free to try, no sign-up). She'll give you a plain answer, or tell you when it's one for your accountant or Service Canada.

FAQ

Do I issue an ROE if an employee quits? Yes, generally. A resignation is an interruption of earnings.

Do I need an ROE for a seasonal worker I lay off for the winter? Yes. A seasonal layoff is an interruption of earnings, and the worker's EI claim depends on it.

What if I miss the deadline? Issue it as soon as you can. A late ROE can delay the employee's EI claim, and penalties can apply. Ask your accountant or payroll provider if you're already past the date.

Is an ROE the same as a T4? No. A T4 is the yearly slip that reports an employee's pay and deductions for tax. An ROE is issued when earnings stop, and it supports an EI claim.

Issue it on time, and your paperwork won't be what holds up someone's claim.