What is an ROE (Record of Employment)? A Guide for Employees and Employers

In Canada, a Record of Employment (ROE) is one of the most important documents an employer must issue to their employee. It’s a form used to document an employee’s employment history, and it plays a critical role in determining eligibility for Employment Insurance (EI) benefits. If you’ve recently experienced a gap in work or earnings, understanding the significance of the ROE is essential.

What is an ROE?

The ROE is a document that provides details about an employee’s work history with a specific employer. It includes information such as:

Insurable Hours: The total number of hours worked during the period of employment.
Insurable Earnings: The wages or salary earned.
Reason for Interruption: The reason why the employment or earnings ceased.

Service Canada uses the ROE to assess an individual’s eligibility for Employment Insurance (EI) benefits, calculate how much they may receive, and determine the duration of the benefits.

Why is an ROE Important?

The ROE is essential for employees to:

Apply for Employment Insurance (EI): Whether due to job loss, illness, maternity leave, or caregiving responsibilities, Service Canada relies on the information provided in the ROE.
Document Work History: It acts as an official record of employment, particularly for EI purposes.
Ensure Smooth Claims Processing: Missing or incorrect ROEs can delay EI benefit claims.

For employers, issuing an accurate and timely ROE helps fulfill legal obligations under Canada’s employment regulations.

When is an ROE Issued?

Employers are required to issue an ROE whenever an employee experiences an interruption of earnings. An interruption occurs in the following situations:

No Work for Seven Consecutive Days: Also known as the “seven-day rule,” this applies when an employee stops working and does not receive wages for a full week.
Salary Reduced by More Than 60%: This may occur due to illness, injury, maternity, or other qualifying circumstances.

Even if the employee does not plan to apply for EI benefits, the employer must issue the ROE.

How to Access Your ROE

Employees can obtain their ROE in two ways:

Online through My Service Canada Account (MSCA): If the employer submits ROEs electronically, employees can view them online. Employees must create or log into their My Service Canada Account (MSCA) to access these records.
Paper Copy: Employers may also provide a physical copy of the ROE.

If you have trouble obtaining your ROE, you can contact your employer or reach out to Service Canada for assistance.

Employer Responsibilities for the ROE

Employers must adhere to specific timelines and requirements when issuing an ROE. These include:

Issuing the ROE on Time: Employers generally have five calendar days from the end of the pay period when the interruption occurs to issue the ROE.
Providing Accurate Information: Errors on the ROE can lead to delays in processing the employee’s EI claim.
Using the ROE Web: Employers are encouraged to use ROE Web, a secure online platform provided by Service Canada, to submit ROEs quickly and efficiently.

Failure to comply with these responsibilities can result in penalties for the employer.

Common Scenarios for ROE Issuance

Here are some of the most common reasons employers issue an ROE:

End of Employment: Due to termination, resignation, or contract completion.
Parental Leave: Maternity or paternity leave requires an ROE to apply for EI benefits.
Illness or Injury: When an employee needs time off work for health reasons.
Work Shortage: Layoffs or seasonal work interruptions.

Regardless of the situation, the ROE must accurately reflect the reason for the interruption.

Frequently Asked Questions (FAQs)

While the ROE is essential for processing EI benefits, Service Canada may allow you to start an application and provide the ROE later. However, this can delay your benefits.

If your employer does not issue the ROE, you can contact Service Canada. They will reach out to your employer on your behalf to resolve the issue.

ROE Web is an online system for employers to submit ROEs electronically to Service Canada. It ensures faster processing and easy employee access.

Yes, employers must issue an ROE for seasonal employees if there is an interruption in earnings, such as at the end of the season or during breaks.

Yes, if your employer submits ROEs electronically, you can view and download past ROEs from your My Service Canada Account (MSCA) for up to six years.

Yes, employers can face penalties or fines for failing to issue an ROE within the required timeframe, as it’s a legal obligation under Canadian employment law.

Conclusion

A Record of Employment (ROE) is much more than just a form—it’s a critical document that impacts an employee’s financial stability during times of unemployment or reduced earnings. Whether you’re an employee applying for Employment Insurance benefits or an employer managing workforce changes, understanding the role and requirements of the ROE is essential.

Make sure to keep your My Service Canada Account (MSCA) up-to-date to access your ROEs conveniently, and don’t hesitate to seek assistance if you encounter any issues.

If you need help navigating EI benefits or employer obligations in Canada, feel free to contact Yeg Tax Masters for expert guidance tailored to your needs!