If you are fired in Ontario but your employer issues an ROE with Code E (Quit), they are likely trying to avoid paying you severance. You must immediately dispute this falsified document, as a voluntary resignation strips you of both your common law severance entitlements and your Employment Insurance (EI) benefits.
Losing your job is hard enough, but finding out that your employer has misrepresented your departure to the government adds insult to injury. 😡 Across Ontario, from Brampton to Ottawa, some employers attempt to manipulate the system by firing an employee verbally but officially filing the Record of Employment (ROE) with Code E (Quit). They do this because if an employee voluntarily resigns, the company does not owe them a dime in severance pay. Furthermore, Service Canada will automatically reject your Employment Insurance application.
This deceitful tactic is considered a form of wrongful dismissal under Ontario employment law. ⚖ An employer cannot legally alter the reality of your termination simply by checking a different box on a government form. When you are pushed out, told not to return, or given a “quit or be fired” ultimatum, the law views this as a termination. By retaining a skilled employment lawyer, you can expose this corporate fraud, force a correction to your ROE, and demand the fair compensation you are owed.
Step-by-Step Process for Challenging a Falsified Code E in Ontario
If your employer is trying to claim you quit, the burden will quickly fall on you to prove otherwise. 📋 Taking immediate, calculated steps is essential to protecting your financial rights.
Step 1: Never Sign a “Voluntary Resignation” Letter
The easiest way for an employer to justify a Code E is to trick you into signing a resignation form during your termination meeting. ✋ Never sign any documents on the spot. If they slide a letter across the table stating you are leaving to “pursue other opportunities,” politely decline, take the paperwork, and leave the building. Your signature makes it incredibly difficult to claim you were fired later.
Step 2: Create an Immediate Paper Trail
As soon as you are told you are fired, document it. 📝 Send an email or a text message to your manager or HR department confirming the conversation. For example: “I am writing to confirm that today at 10:00 AM, you terminated my employment. I did not resign.” This real-time paper trail is powerful evidence if the employer later tries to argue to Service Canada that you walked off the job voluntarily.
Step 3: Notify Service Canada of the Dispute
Submit your EI application within four weeks, even if your employer has not issued the ROE or if you know they will use Code E. 📞 When filling out the application, clearly indicate that you were dismissed without cause and that your employer is falsely claiming you quit. Service Canada has fact-finding agents who will interview both you and the employer to determine the true nature of your separation.
Step 4: Hire a Lawyer to Pursue Wrongful Dismissal
Because a falsified ROE is usually tied to unpaid severance, your next step is legal action. 💼 A lawyer will send a demand letter outlining the employer’s bad faith conduct and demanding a common law severance package. If the employer ignores the letter, your lawyer will file a lawsuit at the Superior Court of Justice, where judges look very harshly upon companies that falsify tax documents to cheat workers.
How Much Does it Cost in Ontario?
Taking legal action against a dishonest employer is highly accessible in Ontario due to flexible fee structures. 💸 Here is a look at standard legal costs for the 2026 calendar year:
- Document Review: An initial consultation to review your communications and ROE usually ranges from $300 CAD to $600 CAD.
- Contingency Fees: Because these cases strongly favour the employee if documented correctly, many lawyers operate on a contingency basis, retaining 25% to 35% of the final settlement.
- Hourly Representation: For those paying out of pocket, expect rates of $350 CAD to $800 CAD per hour.
- Litigation Filing: Should you need to file a formal claim at the Superior Court of Justice, the basic filing fee is roughly $339 CAD.
How Long Does the Process Take?
Correcting a fraudulent ROE can take some time. ⌛ Service Canada’s internal investigation into a disputed Code E can take 4 to 8 weeks before your EI is approved. On the legal side, securing your severance pay through a negotiated settlement typically takes 2 to 4 months, while proceeding to a full civil trial can take over 18 months.
Genuine Resignation vs. Falsified Code E
| Scenario | True Nature of Departure | Proper ROE Code Required |
|---|---|---|
| Employee Finds a New Job | Voluntary choice to leave the company entirely on the employee’s own terms. | Code E (Quit). No severance is owed by the employer. |
| The “Quit or Be Fired” Ultimatum | A forced resignation. The law views this as a termination by the employer. | Code M (Dismissal) or Code A (Shortage of Work). Severance is legally required. |
| Employee is Verbally Fired | Termination by the employer, but HR attempts to code it as a resignation to save money. | Code A (Shortage of Work). Employer must pay full common law severance. |
Frequently Asked Questions (FAQ)
Can an employer change my ROE after it has been submitted?
Yes. Employers can log into the Service Canada ROE Web portal and issue an amended Record of Employment. This is a very common outcome of a negotiated severance settlement orchestrated by an employment lawyer.
What if I walked out in the middle of a heated argument?
Walking out during an argument does not always constitute a legal resignation. In Ontario, a resignation must be clear and unequivocal. If you return the next day or clarify that you just needed a moment to cool down, the employer cannot simply claim you quit.
Can I claim damages for the stress caused by the false ROE?
Yes, potentially. If your employer intentionally falsified the ROE to act maliciously, cause you financial hardship, or delay your EI benefits, a judge at the Superior Court of Justice may award you additional punitive or aggravated damages on top of your severance.
Should I contact the Ministry of Labour or a lawyer?
While the Ministry of Labour can enforce the basic Employment Standards Act, they cannot secure your much larger common law severance entitlements. Consulting a private employment lawyer is almost always the better option to maximize your financial recovery.
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