ROEs: Understanding Record of Employment in Canada

What is a Record of Employment (ROE)?

News: A Record of Employment (ROE) plays a pivotal role in the payroll responsibilities of employers across Canada. This document serves as a comprehensive record of an individual’s employment history, including details about their job tenure, work schedule, and total earnings. The primary purpose of the ROE is to assist former employees during transitional periods, such as job changes or layoffs, by furnishing them with official verification of their employment. Moreover, it facilitates access to unemployment insurance benefits, ensuring financial support during times of need.

When is an ROE Required?

Employers have a legal obligation to issue an ROE in various employment scenarios, including when an employee resigns, is terminated, or undergoes a temporary layoff. The issuance of this document is crucial as it serves as a key determinant of eligibility for Employment Insurance benefits, which are administered by Service Canada. Even if an employee has no immediate plans to apply for these benefits, it remains the employer’s responsibility to furnish an ROE that comprehensively outlines the individual’s employment history with the company. This ensures that the employee has access to important employment records if needed in the future.

What Information does an ROE Include?

An ROE comprises multiple sections of information pertaining to the employee’s tenure, working hours, and compensation within the organization. It encompasses crucial details, including the company’s business number, the employee’s social insurance number, and various job-related data. Additionally, this document furnishes essential information regarding an employee’s earnings, work hours, and any interruptions or suspensions of income, ensuring a comprehensive record of their employment history.

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Issuing an ROE

Employers have the flexibility to issue either a printed or electronic ROE, but opting for the electronic route through the ROE web service is often recommended due to its numerous advantages for both employers and employees. When completed electronically, the employer can transmit the ROE directly to Service Canada. In cases where a paper ROE is provided, the employer must furnish a physical copy to the employee and also send a separate hard copy to Service Canada. Employees have the convenience of accessing copies of their employment records through the My Service Canada Account page, making it easier to manage their employment-related documentation.

When to Issue an ROE?

Employers are obligated to issue an ROE whenever there is a qualifying interruption of earnings, which transpires when an employee experiences or is anticipated to experience seven consecutive days without receiving pay. It’s crucial to emphasize that the issuance of an ROE is mandatory in such cases, irrespective of whether the employee intends to apply for unemployment benefits. If the employee’s compensation during this period falls below sixty percent of their weekly average earnings, an ROE must be provided to accurately document the interruption of earnings.

Consequences of Failing to Submit an ROE

Employers should be aware that failing to submit an ROE in a timely manner can lead to various consequences and liabilities. These may include inconvenience damages and potential sanctions. Additionally, delays in providing the ROE can adversely affect employees, causing them to experience delays in receiving their entitled employment insurance benefits. Therefore, it is imperative for employers to fulfill their obligation promptly by issuing the ROE when required to ensure both legal compliance and the well-being of their employees.

Importance of the ROE for Employment Insurance

When individuals apply for employment insurance benefits, having proper documentation of their employment history is essential. This documentation typically includes items such as pay stubs and T-4 slips. The Record of Employment (ROE) plays a pivotal role in this process, as it serves as a key document that provides official and comprehensive information about an individual’s employment history, earnings, and interruptions of earnings. It is an important piece of documentation when applying for employment insurance benefits, as it verifies the individual’s work history and eligibility for such benefits.

Comprehending the significance of Record of Employments (ROEs) is indeed crucial for both employers and employees in the Canadian job market. Employers who issue ROEs accurately and promptly provide crucial support to their former employees, facilitating access to essential benefits. For employees, understanding the importance of ROEs ensures they have the documentation needed to access the benefits they are entitled to, ultimately contributing to a smoother transition during employment changes or disruptions. Proper handling of ROEs benefits the entire employment ecosystem in Canada by ensuring individuals receive the support they need when facing changes in their job status.

FAQs

1. What is the purpose of an ROE?

The purpose of an ROE is to provide verification of employment and enable access to unemployment insurance.

2. When should an employer issue an ROE?

An employer should issue an ROE when an employee quits, is fired, or experiences a temporary layoff.

3. What are the consequences of not submitting an ROE on time?

Failure to submit an ROE on time can result in liabilities for the employer and cause delays in employees receiving employment insurance benefits.