An ROE or a Record of Employment is an important factor in determining a Canadian worker's eligibility for unemployment insurance benefits when there becomes a gap in their wages from a layoff or maternity leave, for example. Therefore in Canada, it is mandatory for all employers to provide a Record of Employment (ROE) after the Canadian employee leaves work. Reasons for an employee leaving and being issued an ROE include; the contract assignment ended, the worker was laid off, terminated, retired or is taking an ESA approved leave of absence.
What is a ROE?
Since the United States does not have a nationwide standard for unemployment benefits, it may come as a surprise to your American organization that Canada has a national Employment Insurance program that is set out by Service Canada.
The Record of Employment or ROE is the single most important document outlining a Canadian workers history of employment and is the deciding factor to determine a Canadian employee’s eligibility for Employment Insurance benefits.
Who is eligible to receive a Record of Employment?
Every Canadian employee in every province is entitled by law to be issued a ROE after employment stops.
When are American corporations required to issue a Record of Employment?
An American organization does not receive any leeway in regards to issuing a Canadian employees’ ROE, the timeframe is the same for every employer, no matter where they are headquartered. By law, an employer must issue the ROE within 5 calendar days of the last day worked.
Why issue a Record of Employment?
EI or Employment Insurance is one payroll deduction taken off a Canadian employee’s paycheque. Every Canadian worker is required to pay into this insurance program to cover themselves in case they have a gap in employment and wish to apply for this government income while they look for another job. As mentioned above it is mandatory (yes the law!) to issue departing employees a Record of Employment.
How does an American Business complete a ROE?
Just like a Canadian business would complete one! Use Service Canada’s Block by Block Instructions for completing the form.
Where does a U.S. based employer apply for and submit a ROE?
Under Canadian Employment Law, it’s the employer’s responsibility to issue the Record of Employment within 5 calendar days of the end of the employment. So knowing where to apply for, and submit it, is crucial to ensure your responsibilities are met on time!
According to Service Canada, 75% of ROE`s are now submitted electronically. A Canadian worker can access their Record of Employment via Service Canada`s online web portal. Submitting an ROE electronically has numerous benefits especially for an American based employer:
- Issuance time is shortened by filing electronically; if you`re in California and your employee works in Toronto, mailing time for a paper ROE can be more than 5 days making you miss the issuance deadline.
- Saves on printing and postage expenses.
- Is more easily accessible by employees as general letter mail is never a guarantee. If the document is misplaced they can access another copy via the online portal.
- When issued online a copy of the document goes directly to Service Canada ensuring that all parties can access the needed information in a timely and easily accessed manner.
To issue an ROE for your Canadian employees, create an account on The Record of Employment on the Web. For further information on Record of Employment visit Service Canada. Not sure how to employee someone in Canada? A Canadian Employer of Record can help with much more than just ROE processing with their Employer of Record (EOR) services. Please contact The Payroll Edge for more information on how an Employer of Record can help you expand your workforce into Canada without the need to understand foreign compliance rules and regulations.