What Are the Special Situations that Require Employers to Issue Records of Employment (ROEs)?

Employers would typically need to issue Records of Employment (ROEs) when:

• Service Canada requests for the Records of Employment (ROEs)

  • The most common situations in which Service Canada would request employers to issue Records of Employment (ROEs) is when an employee is working in two jobs and experiences an interruption of earnings in one of them

  • In case this situation takes place and the employee submits an application for Employment Insurance (EI) benefits, Service Canada would need a Record of Employment (ROE) from the current employer

  • This is applicable even if the employee is currently working for that particular employer

  • Service Canada typically uses the information on both the Records of Employment (ROEs) to calculate the benefit amount and the number of weeks of Employment Insurance (EI) benefits that the claimant should typically receive

• The Pay Period Type Changes

  • Sometimes, businesses or organisations might feel the need to change their pay period types

  • In this scenario, the owners of these businesses or organisations would need to issue Records of Employment (ROEs) for all employees

  • This is applicable even though the employees are not experiencing an interruption of earnings

  • For more details, readers would need to go through the section titled ‘Block 6, Pay Period Type’ given on the website of Employment and Social Development Canada (ESDC)

• An employee stays with the employer but receives a transfer to another Canada Revenue Agency (CRA) Payroll Account Number (PAN)

  • Employers do not need to issue Records of Employment (ROEs) if they have more than one Payroll Account Number (PAN) and they transfer an employee’s payroll file to a different Payroll Account Number (PAN) within the organisation if:

    • There has been no actual break in the employee receiving earnings during the transfer and,

    • The employer agrees to issue a single Record of Employment (ROE) that will cover both periods of employment in case the need arises

      • It is worth highlighting that in case the change in the Canada Revenue Agency (CRA) Payroll Account Number (PAN) involves a change in the pay period type, the employer would need to issue a Record of Employment (ROE) for the employee

• There is a change in ownership

  • When a business changes ownership, the former employer will need to issue Records of Employment (ROEs) to all employees

  • However, the former employer would not need to issue the Records of Employment (ROEs) in case:

    • There has been no actual break in the employee receiving earnings during the change-over and,

    • The former employer’s payroll records are available to the new employer and the new employer agrees to issue a single Record of Employment (ROE) that will cover both periods of employment in case the need arises

      • It is worth highlighting that in case the change in the Canada Revenue Agency (CRA) Payroll Account Number (PAN) involves a change in the pay period type, the employer would need to issue a Record of Employment (ROE) for the employee

• An employer declares bankruptcy

  • Situations could arise where an employer declares bankruptcy and a receiver takes over the operation of the business

  • In this scenario, the employer will need to issue Records of Employment (ROEs) to all employees

  • However, the employer would not need to issue the Records of Employment (ROEs) in case:

    • There has been no actual break in the employee receiving earnings during the change-over and,

    • The former employer’s payroll records are available to the receiver and the receiver agrees to issue a single Record of Employment (ROE) that will cover both periods of employment in case the need arises

      • Situations could arise where the employees continue to work for the employer even after the bankruptcy

      • In this scenario, the interruption of earnings does not occur until the employees actually stop working, even if they do not receive any earnings

• The workers are part-time, on-call or casual workers

  • Employers would not need to issue Records of Employment (ROEs) each time a part-time, on-call or casual worker experiences an interruption of earnings of seven days or more

  • However, employers would need to issue Records of Employment (ROEs) when:

    • Employees request for Records of Employment (ROEs) where an interruption of earnings has taken place

    • Employees are no longer on the active employment list of the employer

    • Service Canada requests for the Records of Employment (ROEs) or,

    • Employees have not done any work or earned any insurable earnings for a span of 30 days

• Employers offer Wage Loss Insurance (WLI) Plan Payments to their employees

  • Employers would need to issue Records of Employment (ROEs) when they offer their employees a Wage Loss Insurance (WLI) plan if an interruption of earnings takes place when:

    • The plan payments are not insurable or,

    • The plan payments are insurable

      • In this scenario, the employers would need to issue Records of Employment (ROEs) when the interruption of earnings takes place

      • Thereafter, the employers would need to issue second Records of Employment (ROEs) for the period of the insurable Wage Loss Insurance (WLI) payments after they stop

• Employees take a self-funded leave

  • In some workplaces, employees can make agreements with their employers for taking self-funded leaves

  • Based on the terms of these agreements, employees work and defer a portion of their salaries for a certain period to finance a later period of leave

  • For instance, an employee might work for four years and defer 20 percent of the salary earned during those four years to finance a leave taken in the fifth year

  • During self-funded leave, an interruption of earnings does not take place

  • Therefore, the employers would not need to complete any Records of Employment (ROEs) unless either party breaks the agreement

  • In case either party breaks the agreement during the self-funded leave and the employees will not be returning to work, the employers would need to issue Records of Employment (ROEs)

  • Employers would need to enter the date of the last day that the employees worked prior to leaving on self-funded leave in Block 11, Last day for which paid

    • Employers would need to contact the Canada Revenue Agency (CRA) for obtaining instructions on the manner in which they would need to deduct Employment Insurance (EI) premiums on earnings during both the deferral and self-funded leave periods

    • Some employers might be using the services of Payroll Service Providers (PSPs)

      • In this scenario, employers would need to note that the authorities do not require them to issue Records of Employment (ROEs) in case they change Payroll Service Providers (PSPs)

      • However, situations could arise where the new Payroll Service Provider (PSP) is unable to issue Records of Employment (ROEs) for the period of employment covered by the employer’s previous Payroll Service Provider (PSP)

      • In this scenario, the employer’s previous Payroll Service Provider (PSP) would need to issue the Records of Employment (ROEs) up to the time that the new Payroll Service Provider (PSP) takes over