What is a Record of Employment (ROE)?

As an employer, issuing a Record of Employment is crucial after an interruption of earnings. This document helps former employees during unemployment or job transitions while ensuring compliance with federal regulations on the employer side.

This guide covers:

• When employers should issue ROEs
• Why ROEs are important.
• Information contained in ROEs.
• How to create ROEs.
• And how to start applying for Employment Insurance (EI).

What is an ROE?

An ROE, Record of Employment, provides employment history information, including duration and earnings with an employer. Employers must issue workers an ROE when there is an interruption in earnings. 

This critical piece is the most significant proof of one's employment history. Its importance cannot be overstated because Service Canada uses it to determine your Employment Insurance benefits eligibility.

If you're an employer, you must submit an ROE every time a worker leaves your organization or experiences a disruption in earnings lasting seven days or longer.

It's a crucial step that ensures workers have access to their EI benefits when facing unemployment or reduced work hours.

What is considered an interruption of earnings?

Employees with seven consecutive calendar days with no work and no earnings from their employer experience an interruption of earnings. This is known as the 7-day rule.

The rule applies when employees are laid off, quit, or have their employment terminated, with exceptions. When the rule applies, the last day for which they are paid is considered the first day of the interruption of earnings. 

If an employee's salary falls below 60% of their regular weekly earnings due to sickness, injury, quarantine, pregnancy/maternity leave, parental leave, or compassionate care/family caregiver leave, the first day of the interruption of earnings is the Sunday of the week when the salary falls below 60%.

Exceptions to the 7-day rule

Exceptions to the seven day rule for the record of employment process are as follows:

• Real estate agents: An interruption of earnings occurs only when the agent surrenders, suspends or revokes their license or stops working due to injury, illness, quarantine, parental leave, pregnancy/maternity leave, or compassionate care/family caregiver leaves.
• Employees with non-standard work schedules: These employees do not experience an interruption of earnings, even if they don't work for seven consecutive days. Examples of non-standard types of work are listed in the next section.
• Commission salespeople: An interruption of earnings only occurs when the employment contract is terminated or when the employee stops working due to injury, illness, quarantine, parental leave, pregnancy/maternity leave, or compassionate care/family caregiver leaves. Otherwise, earnings are not interrupted as long as the contract continues.

Examples of workers with non-standard work schedules

Here are just a few examples of workers with non-standard work schedules.

• Irregular Shift Workers: Employees who work irregular shifts, such as split shifts, rotating shifts, or on-call schedules, may have non-standard work schedules.
• Part-Time Workers: Part-time employees often have non-standard work schedules that may vary from week to week. Their work hours may not follow a regular pattern, making their schedules non-standard for record-keeping purposes.
• Seasonal or Temporary Workers: Employees who work on a seasonal or temporary basis may have non-standard work schedules. Their employment may be intermittent or limited to specific periods, making it important to accurately document their work history and earnings for the record of employment.

When should employers issue an ROE?

If you are an employer, you must issue an ROE each time an employee experiences an interruption of earnings. ROEs are still required even if the employee is not planning to apply for EI benefits. 

An interruption of earnings occurs when:

• An employee quits.
• An employee is laid off or terminated.
• An employee has had, or is anticipated to have, seven consecutive calendar days with no work and no insurable earnings from the employer (“The Seven-Day Rule”).
• An employee's salary falls below 60% of regular weekly earnings. This may be due to illness or injury, pregnancy, the need to provide care or support to a family member, etc.

If any of the above occurs, you must complete an ROE for the employee.

You should also file ROEs if you are switching payroll providers.

When is the deadline for issuing an ROE?

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How soon you file the ROE depends on whether the process is done on paper or electronically. If you are issuing an ROE on paper, you must issue an ROE within five calendar days of the following:

• The first day of an interruption of earnings; or
• The day the employer becomes aware of an interruption of earnings.

Alternatively, you can issue an ROE electronically through the government’s secure web-based application, Record of Employment on the Web (ROE Web). If you issue an ROE electronically, the deadline will depend on your business’ pay period. 

If you payout on a weekly, biweekly (every two weeks), or semi-monthly (twice a month) basis, you are allotted up to five calendar days after the pay period ends, during which you must issue an ROE in case of an employee's interruption of earnings.

However, If you have a monthly pay period or 13 pay periods per year (every four weeks), you must issue electronic ROEs by whichever date is earlier:

• Five calendar days after the end of the pay period in which an employee experiences an interruption of earnings; or
• 15 calendar days after the first day of an interruption of earnings.

Of course, if you use a cloud-based payroll provider such as Knit, issuing and filing an ROE can be done entirely within the system, making the entire process a breeze.

For more information on ROEs and issuing ROEs electronically or on paper, consult Service Canada’s online guide.

Why is an ROE important for employers?

Understanding the significance of ROEs can save your business from potential legal pitfalls while ensuring your team members receive the benefits they're entitled to. These documents are crucial as Service Canada uses them to determine an employee's eligibility for EI benefits and calculate the duration and amount of their compensation.

Accurate ROEs are necessary to prevent misuse of EI benefits and fraudulent claims and protect businesses and employees. Failing to issue ROEs when required can lead to serious consequences for employers, including penalties or legal action.

According to the CRA’s non-compliance page, employers could be fined up to $2,000 or imprisoned if they fail to issue the ROE. 

By accurately preparing and issuing these records promptly, you demonstrate compliance with employment laws while supporting your employees' financial security during periods of unemployment.

What information is included in an ROE?

When you submit or receive an ROE, you should include the following information:

• Employee’s personally identifiable information, such as:
  
  1. Full Name
  2. Social Insurance Number (SIN)
  3. Date of birth
  4. Full address
  5. Phone number
  6. Email address (if available)
• Period of employment, including the start and end dates
• Insurable hours worked by the employee
• Insurable earnings earned by the employee during the employment period
• Reason for issuing the ROE. For example, layoff, dismissal, maternity leave, or long-term leave
• Employer’s information such as:
  
  1. Name of the Business
  2. Address
  3. Phone number
  4. Business Number

All of this information will make it easier for government bodies to process claims or verify information.

How do employers create records of employment?

Employers have two options for filing an ROE:

• Fill out a paper form.

• Complete it electronically through ROE Web or an automated system like Knit.

For the paper version, you'll need to obtain triplicate copies - one for your records, one for the employee, and one to be sent to Service Canada. If you need more forms or have any queries, contact the Employer Contact Centre.

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How do employees request a copy of the Record of Employment?

Your employer can provide you with a copy of your ROE in either electronic or paper format. If they choose an electronic method, they'll submit it directly to Service Canada, where it's stored in your My Service Canada Account.

On the other hand, if you receive a paper copy from your employer, don't forget that it's not automatically filed! You will need to mail this document directly to Service Canada.

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Applying for Employment Insurance (EI)

Navigating the process of applying for Employment Insurance can initially feel overwhelming, but we have some tips to make it much easier.

First, ensure you have a Record of Employment from each employer you've worked for in the last 52 weeks. This document is critical as it shows employment history and earnings.

Apply for EI as soon as you stop working; delays beyond four weeks could lead to loss of benefits.

Understand EI eligibility requirements – typically, these include having worked a certain number of insurable hours and being out of work through no fault of the employee.

Lastly, if you need more information, visit Service Canada's EI contact page, which lists several ways to contact them for help.

Additional Resources

• How to complete the record of employment (ROE) form
• Calculating Severance Pay in Ontario - Employer Tools
• Termination Pay Ontario: Easy-to-Follow Employer Guide
• 2023 Payroll Legislations Special Payments

Disclaimer: This article provides general information and should not be construed as tax advice. Since tax rules may change over time and vary by location and industry, please consult a CPA or tax advisor for advice specific to your business.

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