What is an ROE and why does it matter to employers?
A Record of Employment (ROE) is a specific form used by employers to report interruptions of insurable earnings to Service Canada. An ROE is one of the most important employment documents as it determines whether an employee qualifies for Employment Insurance (EI) benefits.
Service Canada uses the ROE to determine if an employee is entitled to an Employment Insurance (EI) claim, the benefits’ duration, and the amount of compensation. The government also uses the ROE to ensure that no one misuses EI benefits or makes a false claim. Service Canada holds all ROE forms for 11 years. As such, all essential information must be accurate.
Employers generally issue a record of employment when an employee experiences a lapse in earnings, regardless of whether the employee plans to apply for Employment Insurance benefits. Organizations operating outside Canada may also be required to issue ROEs for Canadian employees, depending on their employment arrangements and regulatory obligations.
What are interruptions of earnings?
A lapse in an employee’s compensation is referred to as an interruption of earnings. This is determined by no work and no insurable earnings for seven consecutive calendar days for an employee, also known as the seven-day rule. An interruption of earnings also qualifies if the circumstance is anticipated.
There are several reasons an interruption of earnings can occur:
- An employee quits
- An employee is laid off
- An employee is terminated
- An employee’s insurable earnings fall below 60% of their regular wages. This can be due to injury, illness, quarantine, pregnancy, caring for a newborn child or adopted child, or caring for a family member with a critical illness
There are exceptions to the criteria of an interruption of earnings, including:
- Real estate agents
- Employees who have a non-standard work schedule, such as firefighters or health care workers
- Commission-paid salespeople
How to complete records of employment
There are two options for completing a record of employment: a paper version and an electronic version.
When issuing the paper version, complete all areas of the form, including employer information, employee information, work history, insurable earnings, and insurable hours. The ROE is a triplicate form. The original copy is provided to the employee. They will need to submit this to Service Canada if they wish to claim Employment Insurance benefits. The second copy is mailed to Service Canada. And the third copy is to be kept by the employer for their records.
If you require the paper version, you can contact the Government of Canada Employer Contact Centre at 1-800-367-5693 to order copies.
There are three ways that you can file an electronic version of the record of employment:
- Through the ROE Web, you can manually enter the information required and submit it electronically.
- You can use payroll software compatible with the ROE Web and complete the form directly through your payroll software.
- If you use a payroll service provider, they can complete the form on your behalf and submit the ROE through a secure automated transfer (SAT).
