In Ontario, employers must electronically file a Record of Employment (ROE) to Service Canada within five (5) calendar days of the end of the pay period in which the employee’s interruption of earnings occurs. Failing to meet this statutory deadline can result in fines up to $2,000 CAD or potential civil liability.
Whether you are terminating a worker in Toronto, managing a seasonal layoff in London, or dealing with an employee who suddenly resigned in Mississauga, Ontario employers must comply with strict federal payroll regulations. Issuing a Record of Employment (ROE) is a mandatory step that cannot be ignored or delayed.
The ROE is the most critical document in the Employment Insurance (EI) program. Service Canada uses the information on this form to determine whether the former employee qualifies for EI benefits, what their benefit rate will be, and how long they can receive it. Because the employee’s financial livelihood depends on it, the government strictly enforces the filing deadlines. Below is the step-by-step process for filing an ROE correctly and on time.
Step-by-Step Process to File an ROE in Ontario
Filing an ROE is governed by Service Canada, meaning the rules apply equally across the province of Ontario. Most modern businesses handle this electronically to ensure speed and accuracy.
Step 1: Determine the Interruption of Earnings
An ROE must be issued when an “interruption of earnings” occurs. This happens when an employee has had or is anticipated to have seven consecutive calendar days with no work and no insurable earnings. This applies to firings, layoffs, resignations, maternity leave, or medical leave.
Step 2: Gather Payroll Data
You will need precise data to complete the form. Collect the employee’s Social Insurance Number (SIN), their first day of work, their final day of work, the total insurable hours worked (usually over the last 53 weeks), and their total insurable earnings.
Step 3: Log Into ROE Web
Service Canada strongly encourages employers to use ROE Web, a secure online portal. If your Ontario business uses external payroll providers, they likely integrate directly with this system. Filing electronically extends your deadline slightly compared to using paper forms.
Step 4: Select the Correct Reason Code
You must accurately categorize why the employee is leaving. Common codes include Code A (Shortage of work/Layoff), Code E (Quit/Resignation), and Code M (Dismissal/Termination). Misrepresenting the reason for termination can lead to serious legal consequences.
Step 5: Submit to Service Canada
Once submitted electronically, the data goes straight to Service Canada. You no longer need to print a paper copy to hand to the employee, as they can access their digital ROE through their personal My Service Canada Account.
Exactly How Long Do You Have to File?
The timeline depends entirely on your pay period schedule (weekly, bi-weekly, semi-monthly) and whether you file electronically or on paper.
| Filing Method | Statutory Deadline |
|---|---|
| Electronic Filing (ROE Web) | 5 calendar days after the end of the pay period in which the interruption of earnings occurs. |
| Paper Filing | 5 calendar days from the first day of the interruption of earnings, OR the day you become aware of it. |
Potential Costs and Penalties for Late ROE Filing
Ignoring ROE obligations is a costly mistake for any Ontario business. Service Canada has the authority to audit payroll records and levy significant penalties:
- Government Fines: Under the Employment Insurance Act, failing to issue an ROE can trigger fines of up to $2,000 CAD or up to six months in jail for severe, repeated corporate offenses.
- Civil Liability: If a late ROE causes the employee to suffer financial hardship because their EI benefits were delayed, the employee could potentially sue your business for “Wallace damages” or bad faith conduct during termination.
- Lawyer Fees: Resolving a legal dispute over a withheld ROE with an employment lawyer can easily cost a company $2,000 to $5,000+ CAD.
Frequently Asked Questions (FAQ)
Do I have to issue an ROE if the employee only worked for three days?
Yes. Regardless of how short the employment period was, if there is an interruption of earnings, you are legally required to issue an ROE to Service Canada.
Do I need to give a paper copy to the terminated employee?
If you file the ROE electronically through ROE Web, you do not need to provide a paper copy to the employee. They can view it online. However, if you file a paper ROE, you must give the employee their designated copies.
Can I withhold the ROE if the employee hasn’t returned company property?
Absolutely not. You cannot withhold an ROE as leverage to get a laptop, uniform, or keys back. The deadline is statutory, and withholding the document violates federal law.
What if I make a mistake on the ROE?
If you realize you inputted the wrong insurable hours or the wrong reason code, you must file an amended ROE as soon as possible through the ROE Web portal to correct the error.
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