A Record of Employment (ROE) must be issued when an employee leaves your company, for whatever reason.
As a small business owner, you are required by law to file a ROE with Service Canada and give a copy to the employee.
Even if you are swamped with work, it is ultimately the employer’s responsibility to issue a ROE to the employee.
What is a ROE?
A record of employment according to Service Canada is a form that all employers must fill out when there is an interruption of earnings for seven consecutive days.
That is the Government’s way of saying the employee is no longer working for your company.
This form must be filled out and filed with Service Canada for the employee to receive employment insurance benefits.
The Record of Employment summarizes how long the employee has worked, how much the employee earned with the employer and the reason the employee is no longer working with your company.
Why do I need to provide a Record of Employment?
This is need for when the employee applies for employment
insurance benefits. Even if the employee doesn’t intend to apply for employment
insurance benefits, the ROE still must be given and filed.
Completing the ROE
Most payroll companies will provide the ROE as part of the service package that you have with them.
If not, then the employer can get the forms from www.servicecanada.ca, using either paper or electronic forms.
As of the publication date of this blog, Service Canada prefers employers use the electronic web forms on its site.
The advantage is quicker turn around times and less room for error. Employees also can access their ROE through the Service Canada website as well.
If the ROE is given in paper form to the employee, Part 1 (the original) goes to the employee.
Part 2 must be filed with Service Canada within 5 calendar days of the first day of an interruption of earnings (last day of work) or the day the employer becomes aware of an interruption of earnings.
The employer must keep part 3 of the ROE and all payroll records of the employee for six years after the year it has been issued.
Penalties for Failing to file a ROE
Suppose the Genghis Khan Construction Company fails to give Julius Caesar, an employee a ROE. Genghis Khan Construction Company maybe fined up to $2,000, imprisoned for up to six months or both.
When Must I File?
When the ROE is submitted electronically, the data is transmitted directly to Service
Canada’s database, where it is used to process EI claims. The employer must issue the ROE within either:
- five calendar days after the end of the biweekly period
- five calendar days after the end of a monthly pay period
- fifteen days after the first day of an interruption of earnings
If you need help with payroll, or just can’t bring yourself to enter the receipts into your accounting software, contact Mathew at firstname.lastname@example.org or if in the GTA (289) 500-1978