In Ontario, if your employer issues a Record of Employment (ROE) with Code M (Dismissal), Service Canada will generally deny your Employment Insurance (EI) benefits. You can challenge this by having an employment lawyer negotiate with your employer to change the code to “A” (Shortage of Work) and secure your proper severance pay.
Being terminated from your job is a stressful event, but discovering that you cannot access your Employment Insurance (EI) benefits makes a bad situation much worse. 😞 In Ontario, your access to EI is entirely dependent on the Record of Employment (ROE) submitted by your former employer to Service Canada. If the employer writes “Code M” in Box 16, they are telling the government that you were fired for serious misconduct. For many workers in cities like Toronto, London, and Kingston, this code is completely unjustified and used purely as a punishment.
Employers frequently misuse Code M to justify firing an employee “with cause” to avoid paying a mandatory severance package. ⚖ Under Ontario common law, the standard to actually prove just cause for dismissal is incredibly high. Things like being late a few times, making minor mistakes, or simply not being a good fit do not meet the legal threshold for serious misconduct. If your employer fails to prove this high standard, the dismissal is wrongful, and you are entitled to compensation.
Fortunately, you do not have to accept an unfair Code M on your ROE. 🔍 By taking strategic legal action, you can force the employer to amend the document, unblock your EI benefits, and secure the financial bridge you need while searching for new employment. Consulting an experienced local lawyer is usually the fastest way to get your paperwork corrected.
Step-by-Step Process in Ontario for Fighting a Code M ROE
Reversing a Code M requires a coordinated approach involving both Service Canada and your former employer. 📋 Most applicants in this province choose to follow these precise steps to restore their benefits and demand their severance.
Step 1: Apply for Employment Insurance Anyway
Do not wait for your ROE to be fixed before applying for EI. 🖥️ You must apply through Service Canada within four weeks of your last day of work, or you risk losing your benefits entirely. During the application, you will be asked why you were dismissed. Be honest, state that you dispute the dismissal, and explain that you are seeking legal counsel to challenge the employer’s allegations of misconduct.
Step 2: Gather Evidence of Your Performance
To fight a “for cause” termination, you need to prove that you were a standard employee who did not commit gross misconduct. 📂 Gather your recent performance reviews, positive emails from managers, and any evidence showing a lack of formal written warnings. In Ontario, an employer generally cannot fire you for cause over performance issues unless they have provided clear warnings and a chance to improve.
Step 3: Issue a Formal Legal Demand Letter
This is where hiring a lawyer becomes crucial. ✉️ Your legal counsel will draft a demand letter to the employer, explaining that their “just cause” allegations would fail in court. The letter will demand a full severance package and, as part of the settlement, a contractual obligation for the employer to issue an amended ROE with Code A (Shortage of Work).
Step 4: Pursue Litigation at the Superior Court of Justice
If the employer refuses to correct the ROE and pay severance, your lawyer will escalate the matter. 💰 A Statement of Claim will be filed at the Ontario Superior Court of Justice for wrongful dismissal and potentially aggravated damages. Employers often back down and agree to amend the ROE once they realize they will have to prove their false allegations in a public courtroom.
How Much Does it Cost in Ontario?
Fighting a corporate employer over your ROE is more affordable than you might think. 💸 Here are the typical legal costs in Ontario as of May 2026:
- Initial Consultation: Many law firms offer a complimentary review of your case, while some charge between $300 CAD and $500 CAD for a detailed document review.
- Contingency Fees: Most wrongful dismissal cases involving a Code M are handled on a contingency basis, meaning your lawyer takes 25% to 35% of the final financial settlement, and you pay no upfront hourly fees.
- Hourly Billing: If you choose an hourly rate, standard employment lawyers charge between $350 CAD and $800 CAD per hour.
- Court Filing Fees: Initiating a lawsuit at the Superior Court of Justice requires a standard filing fee of roughly $339 CAD.
How Long Does the Process Take?
Timelines for resolving an ROE dispute vary. ⌛ If an employer realizes their mistake quickly after receiving a lawyer’s demand letter, an amended ROE and a severance settlement can be finalized in 3 to 6 weeks. However, if the employer stubbornly defends their Code M, progressing through the Superior Court of Justice can take 12 to 18 months to reach a binding resolution.
Comparing ROE Codes in Ontario
| ROE Code | Meaning on the Form | Impact on Employment Insurance (EI) |
|---|---|---|
| Code M | Dismissal (Terminated for Cause). | EI benefits are instantly frozen. An investigation by Service Canada is required. |
| Code A | Shortage of Work (Terminated without Cause). | EI benefits are generally approved quickly without further employer investigation. |
| Code E | Quit (Voluntary Resignation). | EI benefits are denied unless you can prove you had just cause to leave. |
Frequently Asked Questions (FAQ)
Can Service Canada override the Code M on my ROE?
Yes, Service Canada agents have the authority to investigate the dismissal. If they determine the employer’s reasons do not amount to ‘misconduct’ under the Employment Insurance Act, they can approve your EI claim even if the employer refuses to change the Code M.
Is it illegal for an employer to lie on an ROE?
Yes. Providing false or misleading information on a Record of Employment is an offence under the Employment Insurance Act. The Canada Revenue Agency (CRA) can levy fines against employers who intentionally falsify these government documents to harm an employee.
What happens to my EI if I receive a severance settlement later?
If you win a severance settlement months later, those funds are considered earnings by Service Canada. You are legally required to report the settlement, and you may have to repay a portion of the EI benefits you received during the period covered by the severance pay.
Can I ask my employer to just put Code A as a favour?
You can ask, but an employer who fired you ‘with cause’ will likely refuse, as changing it to Code A contradicts their legal defence. This is why having a lawyer negotiate an overall settlement where the Code A is legally binding is usually the best strategy.
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