Canada’s immigration authorities have assigned codes to the most common reasons for issuing a Record of Employment (ROE).
In Block 16 of the ROE Canada form, employers need to enter the code that best corresponds to the reason for which they are issuing the ROE. Read on for details about what each code signifies and when employers need to use it.
Why is the Employee No Longer Working?
The authorities need to know why the employee is no longer working – this is regardless of whether the employee is casual or part-time.
For this reason, employers will need to enter a code in Block 16, regardless of whether an employee is working on a casual, full-time or part-time basis.
Misrepresentation a Serious Offence
Situations could arise where employers need to issue the ROE Canada for two or more reasons. In this scenario, employers need to enter the code that applies first in Block 16. Employers need to be aware that it is a serious offence to misrepresent the reason for issuing the ROE.
Employers could be subject to fines or prosecution in case they enter a false or misleading reason.
Automated Processing
The processing of most ROEs is automated. When employers enter a comment in Block 18, the system removes the ROE from the automated processing system and a Service Canada agent has to review it manually.
This review will result in slowing the process down, with the agent possibly needing to call the employer for various clarifications. For this reason, employers should only enter comments in Block 18 in exceptional circumstances.
Employers should not include comments that only confirm information that they have already entered.
ROE Canada FAQ
What Is An ROE?
An ROE is a crucial document that employers must issue to employees when they stop working for various reasons, such as termination, layoff, or a leave of absence. The ROE provides essential information about an employee’s work history, including details like the start and end dates of employment, hours worked, and earnings. This document is significant for employees because it is required when applying for Employment Insurance (EI) benefits. The EI program uses the information on the ROE to determine eligibility and calculate the amount of benefits an individual is entitled to receive.Employers are obligated to issue an ROE whenever there is an interruption in an employee’s earnings, typically within five days of the end of the pay period in which the interruption occurred. This applies whether the employee is leaving temporarily, permanently, or is being laid off. The ROE can be issued electronically or in paper format, but electronic ROEs are more common as they are directly submitted to Service Canada, allowing for quicker processing. Understanding the importance of an ROE is essential for both employees and employers in navigating the employment landscape and ensuring compliance with Canadian employment regulations.
ROE Meaning Canada
Read on for an explanation of ROE meaning Canada.In Canada, the term “ROE” stands for Record of Employment. The ROE is an important document that employers must complete when an employee experiences an interruption in earnings. This interruption can occur for various reasons, such as when an employee quits, is laid off, is terminated, or takes a leave of absence due to illness, injury, or family obligations.The ROE provides essential information about an employee’s work history, including the dates of employment, the reason for the interruption, the total insurable hours worked, and the employee’s earnings. This document is crucial for employees because it is required when applying for Employment Insurance (EI) benefits. Service Canada uses the information on the ROE to determine an employee’s eligibility for EI benefits and to calculate the amount and duration of the benefits they are entitled to receive.Employers are legally required to issue an ROE within a specific timeframe whenever there is an interruption in earnings. This document can be submitted electronically through Service Canada’s ROE Web service or provided in paper format. Understanding the purpose and importance of the ROE is essential for both employees and employers to ensure compliance with employment regulations and to facilitate the EI application process.
Why Do I Need An ROE?
You need an ROE in Canada because it is a key document required to apply for Employment Insurance (EI) benefits. The ROE provides detailed information about your employment history, such as the start and end dates of your employment, your earnings, and the number of hours you worked. This information is crucial for the government to determine your eligibility for EI benefits and to calculate the amount and duration of benefits you may receive.Without an ROE, you may face delays or be unable to receive EI benefits, which can provide financial support if you lose your job, are laid off, or need to take a leave of absence due to illness, injury, or family obligations. The ROE also helps to establish your reason for leaving your job, whether it’s due to dismissal, resignation, or a temporary leave, which can impact your EI eligibility. It is important to ensure that your employer issues an ROE promptly when your employment ends or is interrupted, as this will allow you to access any benefits you are entitled to more quickly and avoid unnecessary financial hardship during periods of unemployment or leave.
Who Is Responsible For Providing An ROE Canada?
In Canada, the employer is responsible for providing an ROE whenever an employee experiences an interruption in earnings. An interruption in earnings can occur for several reasons, such as when an employee quits, is laid off, terminated, or takes a leave of absence due to illness, injury, or pregnancy. The ROE must be issued regardless of whether the employee intends to apply for EI benefits.Employers are legally required to issue the ROE to ensure that employees have the necessary documentation to apply for EI benefits if needed. The ROE provides detailed information about the employee’s work history, including the start and end dates of employment, the reason for the interruption, the number of insurable hours worked, and the total earnings. Employers must issue the ROE within five days of the end of the pay period in which the interruption in earnings occurs.Employers can submit ROEs electronically through Service Canada’s ROE Web service or provide a paper copy. Electronic submissions are preferred as they are more efficient and help expedite the EI application process for employees. By providing an ROE promptly, employers help ensure that employees can access financial support through EI when needed.
How Do I Get My ROE Canada?
To obtain your ROE in Canada, you generally do not need to request it directly from your employer, as employers are legally required to issue an ROE whenever there is an interruption in your earnings. This interruption could be due to reasons such as resignation, layoff, termination, or taking a leave of absence for illness, injury, or other personal reasons.If your employer submits ROEs electronically, you can access your ROE online through your My Service Canada Account (MSCA). You will need to register for an account if you haven’t done so already, which involves providing personal information and setting up a secure login. Once logged in, you can view and print your ROE, which will be automatically sent to Service Canada. This is the fastest and most efficient way to access your ROE, as it ensures your information is submitted directly and securely.If your employer issues paper ROEs, they are required to provide you with a copy. It is important to keep this document safe, as you will need it to apply for Employment Insurance (EI) benefits. If you do not receive your ROE within a reasonable time, you should contact your employer directly to request it.
What Is An ROE Code?
ROE reason codes are a specific code used on the ROE form in Canada to indicate the reason for an employee’s interruption in earnings. These codes are crucial for Service Canada to understand why an employee has stopped working and to determine their eligibility for EI benefits. Each code corresponds to a different reason for the interruption, such as quitting, being laid off, taking maternity or parental leave, or being dismissed.The codes are categorized into several groups. For example, Code A represents a shortage of work, typically used when an employee is laid off due to a lack of available work. Code D is used for maternity leave, while Code E is for quit, indicating that the employee voluntarily left the job. Other common codes include Code K for other, Code N for leave of absence, and Code M for dismissal, indicating the employee was let go due to misconduct or another reason.Understanding the ROE codes is important for employees as they directly affect the processing of EI claims. If an incorrect code is used, it could delay or impact the employee’s ability to receive benefits. It is crucial for employers to accurately select the appropriate code when completing the ROE to ensure the employee’s claim is processed smoothly.
What Happens If The Wrong ROE Canada Code Is Used?
If the wrong ROE reason codes are used on an ROE in Canada, it can lead to significant complications for the employee applying for EI benefits. ROE reason codes indicate the reason for the interruption in earnings, which directly affects the assessment of the employee’s EI eligibility and the type of benefits they may receive.When an incorrect code is provided, it can cause delays in the processing of the EI application, as Service Canada might need to investigate the reason for the discrepancy. This can lead to prolonged waiting periods before the employee receives their benefits. In some cases, the use of the wrong code might result in a denial of benefits if the reason for separation is not covered under EI eligibility rules.If an employee notices an incorrect code on their ROE, they should contact their employer immediately to request a corrected ROE. The employer can issue an amended ROE, which will replace the previous one and provide the correct information. It’s essential for both employers and employees to ensure that the ROE is accurate to avoid any unnecessary delays or issues with EI benefits, ensuring smooth and timely support during periods of unemployment or leave.
ROE Codes
Code A – Shortage of Work (Layoff)
This is the most commonly used code. Employers should use this code when they lay off employees as a shortage of work only occurs when an employer has to lay off staff.If employers are issuing the ROE because a contract is ending, a season is ending or because they are shutting down operations temporarily, they would need to use Code AExamples of situations where employers would need to use Code A include:End of contract or seasonEnd of casual or part-time workEnd of school yearTemporary shutdown of operationsPermanent shutdown of operationsPosition eliminated or redundantCompany restructuring or,Employer bankruptcy or receivership
Code B – Strike or Lockout
Employers should use this code in situations when an employee is on strike or has been locked out of the workplace.
Code C – Return to School
Service Canada is phasing out this code. Employers should consider using one of the following codes instead of Code C:If the employee is leaving to return to school, employers would need to use Code E – Quit.Employers would need to ensure that they enter ‘Return to School’ in Block 18 if they are using a paper ROE.In case employers are using ROE Web online, they would need to select the “Return to School” option from the dropdown menu.If the employee is leaving to participate in a government-approved apprenticeship training program, they would need to use Code J – Apprentice Training.In some cases, employers might hire students on either a summer term, co-op term or on any other basis where the term is fixed In this scenario, the employer would need to use Code A – Shortage of Work once the employees fulfill their terms.
Code D – Illness or Injury
Employers should use Code D when the employee is leaving work temporarily on account of an illness or an injury.
Code E – Quit
Employers should use this code when the employee initiates the separation from employment.For instance, an employee might quit:To take another jobTo accompany a spouse who needs to move for work-related reasons to another locationTo return to schoolTo retire voluntarily or,For health reasonsEmployers using a paper ROE would need to include a comment in Block 18.These comments could comprise:Take another jobFollow spouseReturn to schoolVoluntary retirement or,Health reasonsEmployers using the ROE online form would need to select the appropriate option from the dropdown menu.Employers should use Code G – Retirement in case the employee is leaving the workplace because of mandatory retirement.
Code F – Maternity
Employers should use Code F only when a birth mother is leaving the workplace for maternity leave. This code does not apply to birth fathers or adoptive parents.Situations could arise where the birth mother is experiencing an interruption of earnings initially because of an illness and thereafter, on account of maternity leave.In this scenario, the employer should use Code D – Illness or Injury as the authorities require employers to use the code that applies first in case more than one code applies to the situation.In addition, the employer would not need to amend the ROE once the employee commences her maternity leave.If the employee is a birth father or an adoptive parent, employers would need to consider using Code P – Parent.
Code G – Retirement (mandatory / approved under the Work Force Reduction program)
Employers should use Code G when the employee is leaving the workplace because of mandatory retirement or through a Work Force Reduction approved by Service Canada.Employers should enter ‘Approved workforce reduction’ in Block 18 if they are using a paper ROE and the employee is retiring under an approved Work Force ReductionEmployers using the ROE Web online form should select the option ‘Approved workforce reduction’ from the dropdown menu.Employers should go through the Work Force Reduction Program for more details.Employers would need to consider using Code E – Quit if the employee is retiring voluntarily.
Code H – Work Sharing
Employers should use this code when the employee is participating in the Service Canada Work Sharing Program.
Code J – Apprentice Training
Employers should use this code if the employee is leaving the workplace temporarily for participating in a government-approved apprenticeship training program.
Code M – Dismissal
Employers should use Code M when they initiate the separation from employment for any reason other than layoff or mandatory retirement – the employee is leaving the workplace because the employer has dismissed the employee.Employers should also use this code when they terminate the employment within a probationary period because the employee was not well suited for the position i.e. the employee was not able to perform the duties the position involved satisfactorily.Employers should enter ‘Terminated within Probationary Period’ in Block 18, Comments if they are using a paper ROE and the employment was terminated within the probationary period.Employers using the ROE Web online form should select the option ‘Terminated within probationary period’ from the dropdown menu.
Code N – Leave of Absence
Employers should use Code N when the employee is leaving the workplace temporarily to take a leave of absence.This code applies in situations where the employee is taking any period of unpaid leave.A leave of absence does not include:Illness or injury (Code D – Illness or Injury)Maternity leave (Code F – Maternity)Parental leave (Code P – Parental)Compassionate care leave (Code Z – Compassionate Care or Parents of Critically Ill Children) or,Leave for parents to care for a critically ill child (Code Z – Compassionate Care or Parents of Critically Ill Children)
Code P – Parental
Employers should use Code P if the employee is leaving the workplace temporarily to take parental or adoption leave.If the employee is a birth mother, employers would need to use Code F – Maternity.
Code Z – Compassionate Care / Parents of Critically Ill Children
Employers should use Code Z if the employee is leaving the workplace temporarily to claim compassionate care benefits or benefits for parents of critically ill children.
Code K – Other
The majority of reasons for which employers need to issue a ROE have been specified above. In case none of the reasons given above apply to the current situation, employers should use Code K.Employers should only use this code in exceptional circumstances such as:Change in payroll / ownership or company nameChange in pay period typeDeath of an employee or,Service Canada has requested the ROEIn these situations, employers should use Code K and provide the appropriate explanation in Block 18.In Block 16, employers should enter the full name and the phone number of the person in their organisation who is readily available for providing more information or clarification about the reasons for issuing the ROE. This would be useful in case Service Canada needs it.
Conclusion
In conclusion, understanding the importance and correct use of the Record of Employment (ROE) and its associated codes is crucial for both employers and employees in Canada. The ROE is a key document that directly impacts an employee’s ability to access Employment Insurance (EI) benefits, providing essential information about their employment history and the reason for any interruption in earnings. Accurate completion of the ROE, particularly the reason codes in Block 16, is vital to ensure smooth processing and to avoid delays or complications in EI claims.Employers must be diligent when issuing an ROE, ensuring they select the appropriate code that accurately reflects the situation. Misrepresentation, whether intentional or accidental, can lead to serious legal consequences, including fines or prosecution. Additionally, unnecessary comments in Block 18 should be avoided to prevent the ROE from being removed from automated processing, which can slow down the employee’s access to benefits.By adhering to these guidelines, employers help maintain compliance with Canadian employment regulations and support their employees during periods of unemployment or leave. Proper handling of ROEs not only benefits the employees but also reinforces the employer’s commitment to transparency and accuracy in reporting.
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