Whether you're managing a business in Canada or considering hiring remote Canadian employees, understanding Records of Employment (ROEs) is a critical part of your employer responsibilities. An ROE is the single most important document employees use to apply for Employment Insurance (EI) benefits.
When an employee experiences an interruption of insurable earnings, Service Canada relies on the ROE to determine their eligibility for EI benefits, the benefit amount, and the duration of payments. As an employer, you are legally required to issue a Record of Employment within a specified timeframe. Failing to comply can result in penalties and serious consequences for both you and your employee.
For 2026, employers should note that the maximum insurable earnings threshold is $68,900, up from $65,700 in 2025. This guide will walk you through everything you need to know about when and how to issue ROEs correctly.
What Is A Record Of Employment (ROE)?
A Record of Employment (ROE) is an official document that outlines an employee's employment history with your company, including wages, working hours, and length of employment. It provides Service Canada with the information needed to assess an employee's eligibility for Employment Insurance benefits.
As an employer, you must issue an ROE each time one of your employees experiences an interruption of insurable earnings. For 2026, insurable earnings are capped at $68,900 annually, meaning EI premiums are only paid on earnings up to this threshold.
You can create an ROE either by using paper forms or digitally through ROE Web. The electronic method is strongly preferred by federal agencies like Service Canada and the Canada Revenue Agency (CRA) because it saves time and improves the quality and accuracy of ROEs.
For example, if your staff are paid biweekly, you must submit the electronic ROE to Service Canada no later than five calendar days after the end of the pay period in which the interruption occurs.
Paper ROEs
If you choose to use paper-based ROE forms, you'll need to obtain blank forms via mail order from the government. Contact the Employer Contact Centre and provide your 15-character CRA payroll account number for identification purposes. Paper ROEs are triplicate forms:
- The original copy goes to the employee
- The second copy is sent to Service Canada
- The third copy is retained for your records
What Are Insurable Earnings?
It's important for employers to understand which employees receiving insurable earnings require ROEs. Insurable earnings include most types of compensation you provide to employees on which Employment Insurance premiums are paid, such as:
- Wages and salaries
- Overtime pay
- Vacation pay
- Bonuses and commissions
- Certain taxable benefits
What Employment Is Not Insurable?
Employers also need to be aware of which employment situations don't qualify as insurable. For example, when an employee of a corporation controls more than 40% of the corporation's voting shares, their employment is not insurable.
Additionally, independent contractors are not employees and therefore do not require ROEs. It's always helpful to consult professional payroll service providers and advisors to ensure you're correctly identifying insurable earnings and hours.
What Is Interruption Of Earnings?
An interruption of earnings occurs when an employee has had or is anticipated to have seven consecutive calendar days without work and without receiving insurable earnings from their employer. This is known as the "seven-day rule."
In most cases, the seven-day rule applies when employees:
- Quit their jobs
- Are laid off
- Have their employment terminated
Other instances of interruption of earnings can occur when an employee's salary falls below 60% of their regular weekly earnings due to:
- Illness or injury
- Pregnancy or maternity leave
- Parental leave or childcare responsibilities
- Quarantine
- Caring for a critically ill family member
When Is A Record Of Employment Issued?
Determining when to issue an ROE can be challenging, but there are two general scenarios: each time an employee experiences an interruption of earnings, and when Service Canada requests one.
Important: You are required to issue an ROE regardless of whether your employee plans to apply for EI benefits.
Common Situations Requiring an ROE
Instances when you must issue an ROE include but are not limited to:
- Maternity or parental leave
- Termination of employment
- Sick leave or disability
- Retirement
- Extended leave of absence
- When Service Canada requests one
- Any time the business changes ownership
- If an employer declares bankruptcy
- When the regular pay cycle is delayed due to internal administrative changes
How To Issue A Paper ROE
If you opt for a paper ROE, you can obtain the form from the Government of Canada Employer Contact Centre. Once received, complete all sections with the required information.
Remember that a Record of Employment is a triplicate form that must be shared with:
- The employee (original copy)
- Service Canada (second copy)
- Your records (third copy)
Paper ROE Types
Different types of paper ROEs are specified by the letters that their serial numbers start with:
- A – English or French ROE (this series can no longer be ordered but remains valid)
- E – English ROE
- K – French ROE
- Z – ROE for fishers
How To Issue An Electronic ROE
Electronic ROEs are the preferred method to transmit this information. They save time, reduce paperwork, and are better for the environment. If you choose this method, you have three options:
- ROE Web: Visit the ROE Web on the Government of Canada website, sign up or log in, manually enter the required information, and submit the ROE electronically.
- Payroll Software: Complete and submit the ROE form through payroll software compatible with ROE Web.
- Payroll Service Provider: Have your payroll service provider complete and submit the ROE using Secure Automated Transfer (SAT).
How To Create An ROE Web Account
The online creation and submission of ROEs eliminates the need to visit Service Canada for identity verification. Follow these steps:
Step 1: Designate a Primary Officer
The first step involves designating a Primary Officer. This individual:
- Accepts the ROE Web agreement on behalf of your business
- Oversees organizational details and folder structure
- Grants access to other representatives
- Defines user privileges for team members
Step 2: Validate Identity
The Primary Officer can verify their identity online through their Canadian Revenue Agency (CRA) account, or alternatively, they can complete in-person validation at a Service Canada Centre.
For in-person validation, acceptable identification includes:
- A valid Canadian or foreign passport, OR
- Two pieces of government-issued identification (at least one with a photo)
Note: If a person has previously validated their identity as the Primary Officer for another organization within ROE Web, they won't need to complete this step again. Additionally, other employees (called "representatives") can be invited to join your organization's ROE Web account.
How To Fill Out The Service Canada ROE Form
A Record of Employment follows a structured format similar to other official documents from Service Canada or the CRA. It is organized into distinct "blocks," each containing essential information about an employee's tenure, work hours, and wages.
There are a total of 22 blocks, which include:
- Relevant employee information (name, SIN, address)
- Employer information (business name, CRA number)
- The employee's first and last day of work
- The end date of the final pay period
- The employee's total insurable earnings and hours
- The reason for issuing the ROE and the corresponding code
While not all blocks may require completion, you should populate as many as possible to prevent subsequent inquiries or requests for clarification from Service Canada.
You can refer to an example of a filled-out form in the Government of Canada's ROE guide. Because completing ROEs correctly can be complex, it's recommended to consult qualified payroll professionals or an Employer of Record (EOR) to ensure you meet all specified requirements.
What ROE Codes To Use For Employment Insurance
When issuing an ROE, you must specify the reason for the employee's interruption of earnings. This requires using specific codes in Block 16 of the form.
Common ROE Codes
- Code A: Shortage of work (layoff)
- Code D: Illness or injury
- Code E: Quit (employee-initiated separation)
- Code F: Maternity
- Code G: Retirement or workforce reduction (mandatory)
- Code H: Work-sharing program
- Code J: Apprenticeship training
- Code K: Other (specify in comments)
- Code M: Dismissal (employer-initiated termination)
- Code N: Leave of absence
- Code P: Parental leave
For a complete list of ROE codes, refer to the Government of Canada ROE guide.
Important: It is a serious offence to misrepresent the reason for issuing an ROE. Entering false or misleading information can result in fines or prosecution.
Where to Submit Your ROE
Where you submit your ROE depends on the method you use:
Electronic ROEs
- Electronic ROEs are transmitted directly to Service Canada through a virtual process
- You may provide the employee with a hard copy for their records (optional but courteous)
- Employees can access their electronic ROEs through My Service Canada Account
- Electronic ROE serial numbers start with "W" or "S"
Paper ROEs
- When issuing paper ROEs, you must provide a physical copy to the employee
- A physical copy must also be sent to Service Canada for processing
- Paper ROE serial numbers start with "A," "E," "K," "L," or "Z"
For those sending paper ROEs to Service Canada, you have two options:
- Mailing: Find the appropriate mailing address on the confirmation pages when submitting your employment insurance application
- In-Person: Personally deliver your ROE to a Service Canada Centre
What Happens If An ROE Is Not Issued?
Employers might struggle to keep up with issuing ROEs during mass layoffs or terminations. However, it's crucial to accurately complete and file the form within the required timeframe.
Non-compliance can result in serious consequences under section 137 of the Employment Insurance Act, including:
- Fines of up to $2,000
- Prosecution for knowingly providing false or misleading information
- Administrative monetary penalties ranging from $100 to $5,000 depending on severity
- Delayed EI benefits for employees, which may lead to civil claims for damages
- Service Canada audits and increased scrutiny
When Can You Skip Issuing A Record Of Employment?
There are limited situations where ROEs are not required:
Independent Contractors
ROEs are not required for independent contractors, as they are not employees and do not receive insurable earnings subject to EI premiums.
Part-Time, On-Call, and Casual Workers
For part-time, on-call, or casual workers, you do not have to issue an ROE every time they experience an interruption of earnings of seven days or more. However, you must issue one when:
- The employee requests an ROE and an interruption of earnings has occurred
- The employee is no longer on your active employment list
- Service Canada requests an ROE
- The employee has not received any insurable earnings for 30 consecutive days or more
Note: All employees who receive insurable earnings—whether full-time, part-time, or casual—require an ROE when they experience a qualifying interruption of earnings. The specific circumstances differ for irregular workers, but the fundamental obligation remains.
How Borderless Can Help You Manage Your International Employees
For employers looking to hire remote Canadian workers, it is a requirement to work with a local legal entity or an Employer of Record. You may also need assistance managing benefits, payroll, and issuing Records of Employment to avoid costly mistakes that can lead to legal consequences.
This is where Borderless comes in. Our platform is designed to help companies like yours hire, pay, and manage international workers, remain compliant with local tax and employment laws, and much more.
If this is something your business requires, contact our team today to set up a demo or call to see if Borderless is a good fit for you and your team.
Disclaimer: Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
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