As a business owner in Canada, issuing an accurate Record of Employment (ROE) is one of your most important payroll compliance responsibilities.
Whether you’re hiring your first employee or managing a growing team, every employer must issue an ROE when an employee experiences an interruption of earnings.
This guide explains what an ROE is, what to include, and how to file correctly with Service Canada—so you can stay compliant and protect both your business and your employees.
What Is a Record of Employment (ROE)?
A Record of Employment (ROE) is a federal form that Canadian employers must issue when an employee stops working and has an interruption of earnings. It provides Service Canada with details about the employee’s insurable earnings, insurable hours, and reason for leaving.
Service Canada uses this information to determine Employment Insurance (EI) eligibility, benefit amounts, and duration.
Even if your employee doesn’t apply for EI, you are still legally required to issue an ROE.
What are the important things to file in a record of employment in Canada?
Before filing a Record of Employment, make sure you have these details ready:
- Employee information: Full legal name, address, and SIN
- Employment dates: Start date and last day worked
- Insurable earnings and hours: Total amounts over the relevant pay periods
- Reason for issuing the ROE: Code such as A (Layoff), M (Dismissal), or E (Quit)
- Final payments: Vacation pay, bonuses, or severance if applicable
Having accurate records on hand ensures your ROE is correct and avoids costly amendments later.
Why the ROE Matters for Business Owners?
For your employees:
- Their EI benefits depend on the accuracy of your ROE.
- Missing or incorrect ROEs can delay or reduce EI payments.
For your business:
- ROEs are a legal requirement under the Employment Insurance Act.
- Errors can lead to Service Canada audits, penalties, or lost employee trust.
- Accurate ROEs show that your payroll systems are organized and compliant.
What Are Insurable Earnings and Hours?
Insurable earnings are the total income amounts on which EI premiums are paid — wages, overtime, vacation pay, bonuses, and certain taxable benefits.
Insurable hours are the total hours worked during a pay period that count toward EI eligibility.
For example, if an employee works 40 hours per week for 10 weeks, their total insurable hours are 400.
Service Canada requires both numbers on every ROE.
Why Insurable Earnings and Hours Matter?
Service Canada uses these figures to:
- Determine EI eligibility — an employee must meet a minimum threshold of insurable hours.
- Calculate EI benefit amounts — benefits are based on average insurable earnings.
- Validate employer filings — accurate information prevents delays or investigations.
Incorrect insurable earnings or hours in your payroll software can trigger rejections or amendments, so review them carefully before submitting an ROE.
Why It’s Important to Have Good Payroll Records to Complete Box 15C?
Box 15C on the ROE reports the total insurable hours worked during the final pay periods before an interruption of earnings. Service Canada uses this number to confirm an employee’s EI eligibility, so accuracy here is critical.
To complete Box 15C correctly, employers should maintain:
- Accurate time tracking for hourly staff (including overtime and stat holidays).
- Consistent records for salaried employees showing standard weekly hours.
- Reconciled payroll summaries showing how hours were calculated each pay period.
- Documentation of paid leaves and adjustments that count toward insurable hours.
Good payroll records prevent reissued ROEs, reduce audit risk, and make your EI filings bulletproof.
When to File an ROE: Deadlines & Penalties
You must issue an ROE when there’s an interruption of earnings, including:
- Termination, layoff, or end of contract
- Drop in earnings below 60% due to illness, injury, or parental leave
- Employee resignation or retirement
| Filing Method | Deadline |
| Paper ROE | Within 5 calendar days of the first day of interruption |
| Electronic ROE | Within 5 days after the pay period in which the interruption occurs, or 15 days after the first day of interruption |
Penalties for non-compliance:
- EI payment delays for employees
- Employer fines up to $2,000 or prosecution for repeated offences
- Increased audit scrutiny
How to File an ROE (Paper vs. Electronic)
Paper ROE
You can request blank ROE forms from Service Canada.
- Order forms online or through the Employer Contact Centre.
- Complete in triplicate: one copy for the employee, one for Service Canada, one for your files.
- Submit by mail or in person within the required timeline.
Paper ROEs work for small employers but are slower and more error-prone.
Electronic ROE
Filing electronically through ROE Web or payroll software like Wagepoint is faster, more accurate, and automatically sends information to Service Canada. It also makes it easier to amend ROEs or track submission history.
Filing Through ROE Web (Service Canada)
ROE Web is Service Canada’s secure online platform where you can:
- Create, file, and amend ROEs electronically
- Upload multiple ROEs at once
- Track status and submission history
To register:
- Sign up using your CRA Business Number (BN)
- Assign a Primary Officer to verify your business identity
- Manage users, create, and file ROEs directly online
For most Canadian businesses, ROE Web is the simplest and most compliant filing method.
Correcting or Amending an ROE
If you discover an error:
- Submit an amended ROE through ROE Web or complete a new paper form marked Amended.
- Correct any dates, insurable earnings, hours, or reason codes.
- Retain both the original and amended copies for your records.
Prompt corrections keep employee EI claims moving smoothly.
Common Reason Codes in a ROE
| Code | Description |
| A | Shortage of work (layoff or end of contract) |
| E | Quit (voluntary resignation) |
| M | Dismissal (with or without cause) |
| D | Illness or injury |
| F | Maternity leave |
| P | Parental leave |
| G | Retirement |
| N | Leave of absence |
| K | Other (special circumstances) |
What’s the Difference Between Firing Someone vs. Laying Them Off?
Although both cause an interruption of earnings, they differ in reason and EI eligibility.
| Scenario | What It Means | ROE Reason Code | EI Eligibility |
| Layoff | Temporary or permanent separation due to shortage of work or contract end. The employee may be recalled later. | A – Shortage of Work | Usually eligible for EI. |
| Firing (Dismissal) | Termination initiated by the employer for performance or conduct reasons. | M – Dismissal | Eligible for EI only if dismissal was without cause. Not eligible if terminated for cause. |
Using the correct code avoids EI delays and protects your compliance record.
How to Use a Payroll App Like Wagepoint to Automate Your ROE
Cloud payroll tools like Wagepoint simplify ROE filing:
- Generate automatically from employee profiles.
- Auto-populate insurable earnings, hours, and dates.
- Select correct reason codes from built-in Service Canada options.
- Submit directly via ROE Web integration.
- Track and amend submissions from your dashboard.
Why it matters for business owners:
- Saves time and prevents human error
- Ensures compliance with CRA and Service Canada rules
- Keeps a clean audit trail in case of review
FAQ: Common Questions About ROE
Q: Do I need to issue an ROE if an employee goes on maternity or sick leave?
A:Yes. ROEs are required for any interruption of earnings, including maternity, parental, and sick leaves, so employees can claim EI benefits.
Q: What about vacation pay, bonuses, or severance?
A: These must be reported if insurable. Vacation pay and most bonuses are insurable; severance pay usually is not.
Q: Do I still need to issue a ROE if the employee isn’t applying for EI?
A: Yes. The legal obligation is based on the interruption of earnings, not the employee’s intention to apply for EI.
Q: If an employee resigns voluntarily, do I issue an ROE?
A: Yes. A resignation still triggers an interruption of earnings. Use Code E – Quit.
Q: Can I issue the ROE after paying the employee’s final pay?
A: Yes — but you must still meet the filing deadline (within 5 days or per your pay schedule).
Q: I feel bad for firing someone. Can I put them down as laid off so they can get EI?
A: No. You must report the true reason for separation. Listing a dismissal as a layoff is misrepresentation and may lead to penalties or audits by Service Canada.
Conclusion
For Canadian business owners, issuing an accurate Record of Employment is both a legal duty and a best practice. With payroll tools like Wagepoint, you can automate ROE preparation, reduce manual errors, and stay compliant with Service Canada and CRA requirements.
If you need help improving your payroll setup or training your team, contact us to help you implement efficient, compliant systems that keep your business running smoothly.