Record of Employment (ROE): The Canadian Employer’s Guide

Key Takeaways:

• An ROE provides information on employment history
• Most employers now need to file electronically (and the deadline is tight)
• An ROE is mandatory any time an employee experiences an interruption of earnings

What’s a Record of Employment (ROE)?

A Record of Employment (ROE) is a mandatory document that Canadian employers issue to Service Canada whenever an employee’s earnings are interrupted. It captures the employee’s insurable hours and insurable earnings, and it’s what Service Canada uses to determine whether that employee qualifies for EI benefits – and how much.

ROEs need to be produced for employees when there is a break in employment of two pay periods or more, such as a temporary layoff, or if employment has been terminated.

Definition: Record of Employment (ROE)

A mandatory payroll document issued by Canadian employers whenever an employee has an interruption of earnings. The ROE records insurable hours and earnings and is the primary input Service Canada uses to calculate Employment Insurance (EI) entitlement. Employers must issue an ROE even if the employee does not intend to file for EI.

One thing worth knowing: the ROE isn’t really about your relationship with the employee – it’s about their relationship with Service Canada. Whether they’re planning to collect EI or not, issuing it is the employer’s responsibility.

When do you need to issue an ROE?

You need to issue an ROE whenever there is a break in employment of two pay periods or more – or any time an employee’s insurable earnings drop significantly due to illness, leave, or a change in work circumstances.

Deadline for issuing an ROE in Canada:

Depending on how you issue an ROE, there are different deadlines.

Common situations that require an ROE:

• Temporary or permanent layoff
• Resignation or voluntary quit
• Termination (with or without cause)
• Parental, maternity or medical leave
• End of a seasonal or contract position
• Compassionate care or family caregiver leave
• Death of an employee

How do you complete an ROE in Payworks?

The fastest way to process an ROE in Payworks is to switch the employee to “Final Pay” status first. This way, after the employee’s last payroll run is processed, they’re automatically moved to “Terminated” status and their ROE will have begun processing within the system.

6-step process to issue ROEs in Payworks

Navigate to Payroll, Processing, Process Payroll. In the additional payroll actions quick links, select Record of Employment and the Record of Employment Manager displays.

Step 1: Select the employee. Choose the employee from the results in the Select Employee table or by using the Search Employees box.

Step 2: Review and update the employer’s information. Ensure the Company Address, Contact Name, and Phone Number are correct. Select the radio button for the preferred communication language.

Step 3: Review and update the employee’s information. Complete the Expected Date of Recall if you have a return date. Select the First Day Worked, Last Day For Which Paid, Final Pay Period End Date, and Reason Code.

Step 4: Review employment information and adjust insurable earnings and hours. The employee’s employment information displays and you can modify the employee’s insurable earnings, hours, or both if necessary.

Note: Service Canada only requires the last year plus one pay period of information for Insurable Hours and the last half year plus one period for Insurable Dollars.

Step 5: Review and update any additional payments. This is where outstanding amounts get reported. Vacation Pay should contain the amount of vacation paid out on final pay. Stat Holiday Pay should be completed if stat pay was paid after the employee’s leave date. Other Monies should contain any other amounts such as Pay in Lieu or Severance Pay. If your earnings are set to ROE boxes, any earnings paid on the final pay period will automatically populate this screen.

Step 6: Preview and submit ROE. Verify that all the information on the ROE looks correct. If everything looks right, select Submit and close when complete. If any errors are identified, select Cancel to discard the ROE or save a draft, or Previous to return to the previous page.

For employees going on leave, it’s best practice to use either the “Final – On Leave” or “Final - Parental” status so the employee’s last payroll can be processed. On the next payroll run, the employee will automatically be moved to “On Leave” or “Parental Leave” status for the duration. 

Note: Canadian payroll administrators are not required to print copies of ROEs because Payworks submits them directly through Secure Automated Transfer to Employment and Social Development Canada (ESDC). Employees can access electronic ROEs on their My Service Canada account.

Need a walkthrough? Payworks clients can head directly to the Help Centre and search for ROE. There, you’ll find helpful videos and step-by-step articles.

Not a Payworks client? Book a demo to learn more about what better Canadian workforce management looks like in action (and how much time you could reclaim in your day-to-day): https://www.payworks.ca/landing-pages/campaigns/book-a-demo.