What is a Record of Employment (ROE)?

When is a record of employment required?

Not every change in an employee's situation requires an ROE. The trigger is interruption of earnings. In most cases, employers must issue an ROE when:

• The employee has seven consecutive calendar days with no work and no insurable earnings (the "seven-day rule")

• The employee's insurable earnings drop below 60% of their regular weekly earnings because of:

  • Illness or injury

  • Pregnancy or maternity leave

  • Parental leave

  • Compassionate care or family caregiver leave

  • Employment ends temporarily or permanently

You may also need to issue an ROE at other times when Service Canada specifically requests one, even if the situation isn't typical.

What information does an ROE include?

When you strip away the acronyms and form fields, an ROE is really a snapshot of an employee's recent work history. To understand ROEs in a practical, day‑to‑day way, it helps to look at what they actually include.

Each record captures a few key pieces of information that Service Canada uses to assess EI eligibility and benefits:

• Employee identification details: Basic personal information, including name and Social Insurance Number (SIN).
• Employer information: Your business name, address, and payroll account number.
• Employment period: The start date and the last day for which the employee was paid insurable earnings.
• Insurable hours and earnings: Details of insurable hours worked and insurable earnings over a defined period (often the last 52 weeks or since the last ROE). This helps Service Canada calculate EI entitlements.
• Reason for issuing the ROE (ROE codes): A required ROE code and description that explains why the ROE is being issued (ex: shortage of work, illness, quit, dismissal, leave of absence, or maternity/parental leave).

This information works together to tell a clear, standardized overview of an employee's work and pay situation leading up to the interruption of earnings.

Why the ROE matters to employees.

When someone is laid off, goes on maternity or parental leave, experiences a serious illness or injury, or leaves work for other covered reasons, their financial stability can feel uncertain. An accurate and timely ROE:

• Helps them apply for EI benefits quickly
• Reduces the chance of delays or questions from Service Canada
• Demonstrates that their employer is organized, compliant, and considerate

In moments of transition, employees remember how they were treated. Getting the ROE right is part of building trust and providing a positive experience even when employment is interrupted or ending.

Why the ROE matters to employers.

For employers, the importance of the record of employment relates three key areas:

• Compliance and risk management: ROEs are a legal requirement in Canada. Errors or delays can lead to follow-up from Service Canada, and, in some cases, reputational risk or penalties.
• Operational efficiency: Manually tracking interruptions of earnings, calculating insurable earnings and hours, and entering ROE data by hand is time-consuming and error-prone. Streamlined processes and automation free up HR and payroll teams to focus on more strategic work.
• Employee experience and brand: How you handle separations and leaves sends a strong message about your culture. Reliable ROE processes support a smooth transition and can keep alumni and temporary-leave employees positively connected to your brand.

That combination of control, efficiency, and care helps make ROE management a reliable and straightforward part of the employment transition process.

Best practices for managing ROEs in Canada.

Just as with the ROE itself, it's important to standardize your internal workflow for processing them to ensure consistency, efficiency, and accuracy. These are the key steps to follow.

1. Create clear internal guidelines.

Create an easily-accessible internal playbook that outlines in detail:

• Exactly which events trigger an ROE in your organization (e.g., layoff, end of contract, resignation, long‑term disability, maternity/parental leave, seasonal shutdown).
• Which ROE code to use for each scenario, with 1–2 line examples ("Use Code A – Shortage of Work for seasonal layoff at plant closures").
• Who initiates the ROE (manager, HR, or payroll), who approves it, and expected turnaround times from the last day worked to ROE issuance.

2. Centralize your data.

Make sure every data point that appears on the ROE has a clear system of record:

• Keep all ROE-related fields in a single, integrated system rather than spreading them across spreadsheets, emails, and point tools.
• Make sure key details are always current: hire date, last day worked, last day paid, job and work location, insurable hours, insurable earnings, and final pay.
• Use required fields, effective-dated changes, and basic validations (for example, checking that last day worked isn't before hire date) to catch issues before an ROE is generated.

3. Train managers and HR partners.

Give managers enough context to recognize situations requiring ROE issuance and proactively begin the process:

• Share internal documents on common situations in your organization and which ones do or don't require ROEs
• Clarify exactly what they must send to HR/payroll and the deadline
• Provide sample language they can use with employees to explain what an ROE is, when to expect it, and that it's needed for EI—not something the company "controls" beyond accuracy and timing.

4. Audit and improve your process.

Keep your process efficient and compliant with regular checks:

• Each month or quarter, review a small sample of recently-issued ROEs and confirm they are accurate and complete
• Track common errors (ex: wrong code, missed interruptions of earnings, or inconsistent data) and adjust your playbook or training to address them.
• Look at patterns by business unit or location—if one group has more corrections or late ROEs, that's a signal to tighten local processes or provide targeted coaching.

How Workday helps simplify ROE management.

For Canadian organizations, the right technology can transform the ROE process from one that feels like a burdensome compliance task to a streamlined, reliable process. With Workday, organizations can:

• Automate ROE triggers based on changes in employment status, job data, or pay that signal an interruption of earnings.
• Leverage a single source of truth for HR, time, and payroll data, so insurable hours and earnings are calculated consistently and accurately.
• Embed Canadian-specific rules and validations, helping ensure reason codes and data align with current requirements.
• Orchestrate workflows so HR, payroll, and managers stay aligned during terminations, leaves, and other key events.
• Generate insights into separation and leave trends, helping you spot operational and workforce patterns—beyond the form itself.

The result is fewer errors, fewer amendments, and more confidence—for both your teams and your employees.

Turning a technical requirement into a human moment.

Understanding ROEs is about more than memorizing rules. It's about recognizing that behind every ROE issued is a human story: a layoff, a new baby, a health challenge, a career change, and many others.

When Canadian employers treat the ROE as both a compliance requirement and a moment to support employees with clarity, transparency, and speed, they strengthen trust—even when the news is difficult.

With modern, integrated solutions like Workday, you can make ROEs less about chasing data and more about doing what matters most: supporting people through change, while keeping your organization compliant, efficient, and ready for what's next.