Record of Employment (ROE) Canada — Employer Guide
Everything Canadian employers need to know about the Record of Employment (ROE) — when to issue it, how to file with Service Canada, reason codes, and payroll compliance requirements.
The Record of Employment (ROE) is one of the most important — and most misunderstood — payroll documents in Canada. Every time an employee has an interruption of earnings, employers are legally required to issue an ROE to Service Canada. The ROE determines whether the employee qualifies for Employment Insurance (EI) benefits and how much they'll receive.
This guide covers everything Canadian employers and bookkeepers need to know: when a record of employment is required, how to file it with Service Canada, what the reason codes mean, the filing deadlines, and common mistakes to avoid. Whether you're managing payroll in-house or working with a professional payroll service, understanding the ROE process is essential.
What Is a Record of Employment (ROE)?
A Record of Employment is a mandatory document issued by Canadian employers when an employee experiences an interruption of earnings. Service Canada — part of Employment and Social Development Canada (ESDC) — uses the information on the ROE to determine EI eligibility, benefit amounts, and duration of benefits.
The ROE captures three key pieces of information: the employee's insurable hours worked during the reference period (up to 53 weeks), the insurable earnings during that period, and the reason code explaining why the interruption occurred. CRA and Service Canada share payroll data, so ROE accuracy directly impacts both the employee's EI application and the employer's compliance standing.
Maximum deadline to file after interruption of earnings
Maximum reference period for insurable hours and earnings
Codes A through Z identifying the cause of the interruption
When Must You Issue a Record of Employment?
You must issue a Record of Employment whenever an employee has an interruption of earnings — defined as a situation where the employee stops working and you expect them to receive no insurable earnings for at least 7 consecutive calendar days. You must also issue an ROE if the employee continues to work but their weekly insurable hours fall below 40% of their normally scheduled insurable hours.
Layoff or Shortage of Work
The most common reason. When business slows and you need to reduce staff temporarily or permanently, an ROE is required immediately.
Termination / Dismissal
When an employee is let go — whether for cause or without cause — you must issue an ROE with the appropriate code.
Resignation (Employee Quit)
When an employee voluntarily leaves the company. The ROE must still be issued even though EI may not be payable in quit situations.
Maternity or Parental Leave
Employees going on maternity or parental leave require an ROE to apply for EI maternity/parental benefits through Service Canada.
Medical Leave / Illness
An employee unable to work due to illness or injury needs an ROE to access EI sickness benefits (up to 26 weeks in 2025).
Retirement
When an employee retires, an ROE must be issued regardless of whether they intend to collect EI.
Complete ROE Reason Code Reference
Choosing the correct ROE reason code is critical. The wrong code can delay the employee's EI application, trigger a Service Canada audit, or result in the employee receiving incorrect benefit amounts. Here is a complete reference of all active ROE codes:
| Code | Reason | EI Benefit Type |
|---|---|---|
| Code A | Shortage of Work / End of Contract / Seasonal Work | Regular EI benefits |
| Code B | Strike or Lockout | No EI until strike ends |
| Code C | Return to School | Regular benefits if involuntary |
| Code D | Illness or Injury | EI Sickness Benefits (26 weeks) |
| Code E | Quit (Voluntarily Left) | Usually not eligible unless just cause |
| Code F | Maternity | EI Maternity Benefits (15 weeks) |
| Code G | Retirement | Generally not eligible |
| Code H | Work Sharing | Work Sharing benefits |
| Code J | Apprentice Training | Regular EI benefits may apply |
| Code K | Other | Determined case by case |
| Code M | Dismissal (fired for cause) | May not qualify — investigation |
| Code N | Leave of Absence | Depends on reason |
| Code P | Parental Leave | EI Parental Benefits (up to 69 weeks) |
| Code Z | Compassionate Care / Family Caregiver | EI Caregiver Benefits |
How to File a Record of Employment with Service Canada
Service Canada strongly recommends electronic filing through ROE Web. Electronic ROEs are processed faster, available immediately to your employee through My Service Canada Account, and reduce the risk of mail delays. Here's how to file a record of employment electronically:
Register for ROE Web
If your business doesn't already have access, register at servicecanada.gc.ca. You'll need your business number (BN) and payroll program account number. The registration process takes 5–7 business days to complete.
Gather Required Information
You need: employee's SIN, date of birth, first and last day worked, pay period type (weekly, bi-weekly, etc.), total insurable hours (up to 53 weeks), insurable earnings by pay period, and the reason code for the interruption. Your payroll records should contain all of this data.
Complete and Submit the ROE
Log into ROE Web, create a new ROE for the employee, enter all required fields, select the appropriate reason code, review carefully, and submit. The system will confirm receipt and assign a serial number. The employee can access their ROE immediately through My Service Canada Account.
Keep a Copy for Your Records
Save a copy of each submitted ROE. CRA recommends retaining payroll records — including ROEs — for at least 6 years from the end of the last tax year they relate to. These records may be requested during a CRA audit or Service Canada review.
ROE Deadlines by Filing Method
| Filing Method | Deadline | Employee Access |
|---|---|---|
| Electronic (ROE Web) | 5 calendar days after the interruption or end of pay period in which it occurs | Immediate via My Service Canada Account |
| Paper (Form IN-1) | 5 calendar days after the last day worked (employer copy to Service Canada; employee copy to employee) | Once employee receives physical copy |
Common ROE Mistakes and How to Avoid Them
Mistake: Wrong Reason Code
Fix: Review Service Canada's code guide carefully. When in doubt about Code A vs. Code M or Code E, consult your HR/payroll provider before submitting.
Mistake: Incorrect Insurable Hours
Fix: Insurable hours cap at 35 hours per week for most employees. Overtime hours above the maximum insurable amount are excluded from the ROE calculation.
Mistake: Missing Vacation Pay
Fix: Vacation pay paid out on termination must be reported in Block 17C — it affects the employee's EI benefit rate and should not be omitted.
Mistake: Late Filing
Fix: Set calendar reminders tied to each pay period end date. Many payroll software platforms can auto-trigger ROE drafts when an employee is terminated.
Mistake: Not Issuing an ROE for Leaves
Fix: Maternity, parental, medical, and compassionate care leaves all require an ROE so the employee can apply for the appropriate EI benefit type.
Mistake: Paper ROE When Electronic Is Required
Fix: Businesses with 100+ employees must use ROE Web. Even smaller businesses benefit from electronic filing for speed and to avoid paper errors.
Professional Payroll Services Handle ROEs for You
Managing records of employment in-house requires staying current on Service Canada's requirements, tracking multiple employee situations simultaneously, and filing accurately under time pressure. For most small and mid-sized Canadian businesses, this is exactly the kind of compliance task that benefits from professional payroll processing services.
At Far Beyond Bookkeeping, our payroll team handles all ROE preparation and filing as part of our complete payroll service — including T4 slip preparation, ROE compliance, remittances, and year-end close. We file electronically through ROE Web, ensure correct reason codes, and keep your records organized for any future CRA or Service Canada review.
Let Us Handle Your Payroll Compliance
From ROEs and T4 slips to CPP/EI remittances and payroll tax deductions — our payroll processing service covers everything.
Frequently Asked Questions
Common questions about our Canadian bookkeeping services
A Record of Employment (ROE) is a mandatory document that Canadian employers must issue whenever an employee experiences an interruption in earnings. The ROE is the most important document in the Employment Insurance (EI) system — Service Canada uses the information on the ROE to determine whether an employee qualifies for EI benefits, and if so, how much they will receive and for how long.
The ROE captures information about the employee's insurable hours and insurable earnings during the reference period, the reason for the interruption, and the first and last days worked. Employers must issue a record of employment within specific timeframes depending on whether they file electronically through the ROE Web service or issue paper ROEs. Failure to issue an ROE on time can result in penalties from Service Canada.
You must issue a Record of Employment any time an employee has an interruption of earnings — meaning they have stopped working or their insurable hours will fall below 40% of their regular weekly insurable hours for a period of at least 7 consecutive days. Common situations requiring an ROE include: layoff, termination, resignation, leave of absence, maternity or parental leave, illness or injury, and retirement.
If an employee is on a leave of absence or maternity/parental leave but their insurable hours have not dropped below 40% of normal, you do not need to issue an ROE until the leave begins affecting their insurable hours in a meaningful way. When in doubt, consult a payroll professional — issuing an ROE when not required is better than failing to issue one when it is.
Employers can file the ROE electronically using Service Canada's ROE Web service or issue a paper ROE (form IN-1 series). Electronic filing through ROE Web is strongly recommended — it's faster, eliminates mailing delays, and allows employees to access their ROE directly through My Service Canada Account without waiting for a physical copy.
To file electronically, register for the ROE Web service through Service Canada, enter your employee's information and earnings data, assign the appropriate ROE reason code, and submit. The information transfers directly to Service Canada's systems. For paper ROEs, you must mail the original to Service Canada and give the employee their copy within the specified deadline. Most businesses using payroll software like QuickBooks Payroll or Ceridian can generate and transmit ROEs directly from the software.
ROE reason codes indicate why the interruption of earnings occurred. The most commonly used codes are: Code A (Shortage of Work/End of Contract); Code B (Strike or Lockout); Code C (Return to School); Code D (Illness or Injury); Code E (Quit); Code F (Maternity); Code G (Retirement); Code H (Work Sharing); Code J (Apprentice Training); Code K (Other); Code M (Dismissal); Code N (Leave of Absence); Code P (Parental); and Code Z (Compassionate Care / Family Caregiver).
Selecting the correct code matters — it affects which EI benefit type the employee may qualify for. For example, Code F and Code P allow employees to apply for maternity and parental EI benefits respectively, while Code D triggers access to EI sickness benefits. When in doubt about which code to use, consult your payroll provider or bookkeeper.
The deadline for issuing a Record of Employment depends on your filing method. For employers filing electronically through ROE Web: you must transmit the ROE within 5 calendar days of the interruption of earnings or the end of the pay period in which the interruption occurs, whichever is later. For paper ROEs: you must issue within 5 calendar days of the interruption of earnings, and the employee must receive their copy within that same 5-day window.
Service Canada takes ROE deadlines seriously — late or inaccurate ROEs can prevent employees from receiving timely EI benefits and may result in fines or penalties for the employer. Setting up automated payroll reminders for ROE issuance, or working with a professional payroll processing service, ensures you never miss a deadline.