The record of employment — when, how and by when

The ROE is the single most important document in the Employment Insurance program, and it is the one small employers most often issue late. Service Canada uses it to decide whether a person qualifies for EI, how much they receive and for how long — which is why the deadlines are measured in days rather than weeks.

When an ROE is required

You complete an ROE for an employee with insurable earnings who stops working and experiences an interruption of earnings. Critically, you must complete it even if the employee does not intend to apply for EI benefits. That catches a lot of small employers who assume a resignation to another job means no paperwork.

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

You do not have to issue an ROE every time a part-time, on-call or casual worker has an interruption of seven days or more. You must issue one when the employee requests it and an interruption has occurred, when they are no longer on your active employment list, when Service Canada requests one, or when the employee has not done any work or earned any insurable earnings for 30 days.

When earnings are not insurable

You only issue ROEs for employees with insurable earnings and insurable hours. Employment is not insurable where the employee does not deal at arm’s length with the employer, or where an employee of a corporation controls more than 40% of its voting shares. That last point catches most owner-managers — and it is a question worth settling before, not after. Where it is unclear, the CRA issues insurability rulings.

The deadlines

Electronic filing through ROE Web is the practical choice for most small employers: the deadline follows your pay cycle, and if you file electronically you no longer need to give the employee a paper copy. If you do issue on paper, Part 1 goes to the employee, Part 2 to Service Canada and Part 3 stays in your records — and the employee needs their copy to apply for benefits.

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

The ROE sits alongside the rest of the payroll calendar rather than replacing any of it. Deductions still have to be withheld and remitted on your schedule — see payroll remittances and the RP account — and the departing employee still gets a T4 at year-end, on the timetable in slip filing deadlines. If you have not hired before, the full setup sequence is in hiring your first employee.

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 — please speak with a CPA before acting on anything here.