This past year we have been asked many questions about completing a Record of Employment (ROE) form. Here are helpful answers to the most common of those questions based on information from the Canadian Payroll Association:
Q: If an employee’s hours are reduced, is that considered an interruption of earnings?
A: A reduction of working hours for an employee is generally not considered an interruption of earnings, therefore an ROE would not be produced except for two exceptions – if Service Canada requests it or a Work Sharing Program was approved.
Q: Service Canada indicates that an interruption of earnings occurs when an employee’s salary falls below 60% of their regular weekly earnings. Has this rule been altered due to COVID-19?
A: The requirement to issue a ROE when an employee’s earnings fall below 60% of regular weekly earnings remains in place. This rule only applies when the reduction is due to illness, injury, quarantine, pregnancy or the need to care for a newborn or adopted child or family member.
Q: How quickly must an ROE be submitted if it is concluded that an interruption of earnings has occurred?
A: Electronic ROE’s must be submitted 5 days after the pay period has ended for weekly, bi-weekly or semi-monthly employees. Paper ROE’s must be submitted 5 days after the first day of the interruption of earnings or 5 days after the employer becomes aware of an interruption of earnings.
Q: Can an employer use a photocopy of the ROE form to complete an ROE for an employee?
A: No. Each ROE has it’s own unique serial number so photo copies may not be used.
Q: When would an employer be required to amend an ROE?
A: The ROE would be amended if there was an error on the original, if additional monies were paid after the original ROE was issued, or if Service Canada has directed an amendment.
Q: If the employee’s leave has ended, but they are not returning, does the ROE need to be amended to reflect a change in the reason code?
A: An amendment is not required if no additional monies are being paid.
Q: When preparing the ROE, which reason code should be used?
A: Service Canada’s list of possible reasons for an ROE has not changed due to the pandemic, and still includes:
- A – Shortage of work/temporary lay off
- B – Strike or lockout
- D – Illness or injury (this includes self-isolation or quarantine)
- E – Employee quit
- F – Maternity
- G – Retirement
- H – Work sharing
- J – Apprentices training
- K – Other reasons
- M – Dismissal
- N – Leave of absence due to lack of child-care
- P – Parental
- Z – Caregiver or compassionate care leave
Do you have other questions about ROE’s? Contact a KWB professional using this link.
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