The record of employment — when, how and by when

The ROE is EI’s key document, and small employers often issue it late. Service Canada uses it to decide eligibility, amount and duration, so deadlines run in days.

Related: EI premium rate 2027 — $1.64 per $100, insurable earnings ceiling $70,800.

When a record of employment is required

Complete an ROE whenever an employee with insurable earnings has an interruption of earnings, even if the employee does not intend to apply for EI benefits. A resignation still needs one.

What counts as an interruption of earnings

• The seven-day rule. An employee has had, or is expected to have, seven consecutive calendar days with no work and no insurable earnings from you. This is what applies when someone quits, is laid off or is terminated. The first day of the interruption is treated as the last day for which paid.
• The 60% rule. Where an employee’s salary falls below 60% of regular weekly earnings and the separation is due to illness, injury or quarantine, pregnancy or parental leave, or compassionate care and family caregiver leave. Here the first day of the interruption is the Sunday of the week in which the drop occurs.

Part-time, on-call and casual workers

For part-time, on-call or casual workers, not every seven-day gap needs an ROE. Issue one on request after an interruption, when they leave your active list, when Service Canada asks, or after 30 days with no work or earnings.

When earnings are not insurable

ROEs cover only insurable employment. It is not insurable where the employee does not deal at arm’s length or controls more than 40% of the voting shares, which covers most owner-managers. If unclear, ask the CRA for an insurability ruling.

The deadlines

Most small employers should file through ROE Web: the deadline follows your pay cycle, and you need not give the employee a paper copy. On paper, Part 1 goes to the employee, who needs it to apply for benefits, Part 2 to Service Canada and Part 3 to your records.

The blocks that go wrong

• Block 11, last day for which paid. This is the last day of paid work, not the date the final cheque was issued and not the date notice was given. Confusing the two shifts the whole claim.
• Insurable hours. Reported hours must reflect hours actually worked and insurable, including paid leave where it applies. Guessing here creates a mismatch with your payroll records.
• Vacation and severance pay. These are reported in their own blocks, not folded into regular earnings. How and where they are allocated affects the claim.
• Reason for issuing. The code is factual, not diplomatic. It has consequences for the employee’s claim and should match your own records.
• Non-arm’s-length employment. Issuing an ROE for a related party whose employment is not insurable creates a problem rather than solving one.

Where the ROE fits in your payroll year

Payroll continues as normal: remit deductions on schedule (payroll remittances and the RP account) and issue the T4 on time (slip filing deadlines). First hire? See hiring your first employee.

The ROE is one item on a list. The final cheque has a deadline, vacation pay must be settled, and the payment may be employment income or a retiring allowance. See final pay when you terminate an employee.

ROEs in the Fraser Valley: seasonal and project work

Mission forestry and equipment operators lay off seasonally. Each interruption needs its own ROE with an accurate reason code. Accountant in Mission BC.

Surrey construction ends employment at the end of a project more often than for cause. The ROE is due on the same timetable whether the crew member is coming back for the next job or not. Contractor accountants in Surrey.

A Maple Ridge employer issuing a first ROE usually finds the pay-period history is the hard part; that is a payroll-records question, not an ROE question. Payroll services in Maple Ridge.

The bottom line

An ROE is required on an interruption of earnings, whether or not the employee plans to claim EI, and the window is days. Issue electronically, get Block 11 right, report vacation and severance in their own blocks, and amend rather than reissue when something changes. Running this properly is part of our payroll services.

This article is general information for Canadian business owners and is current as of July 2026. It is not tax, legal or accounting advice, and it does not create a client relationship. Tax rules change and your situation is unique, so please speak with a CPA before acting on anything here.