When to issue an ROE: Canada employer guide 2026

You must issue an ROE every time an employee experiences an interruption of earnings, whether or not they plan to apply for Employment Insurance. That obligation applies to terminations, layoffs, unpaid leaves, and any situation where weekly earnings drop below 60% of normal levels due to illness, injury, or caregiving responsibilities.

Key situations that require an ROE:

• Termination with or without cause

• Temporary or permanent layoff

• Maternity, parental, or adoption leave

• Illness, injury, or quarantine

• Voluntary resignation with an earnings interruption

• Leave without pay or sabbatical

• When Service Canada specifically requests one

You must also issue an ROE when your payroll type changes, even if no actual earnings interruption occurs. Deadlines differ by filing method: paper ROEs are due within five calendar days of the interruption start, while electronic ROEs follow timelines tied to your pay cycle. Exceptions exist for part-time, casual, and on-call workers, but conditions apply.

Table of Contents

• When does an employer need to issue an ROE?

• What are the deadlines, and what happens if you miss them?

• How T-Ledgers helps small businesses stay on top of ROE compliance

• T-Ledgers makes payroll compliance straightforward for Canadian employers

• Key takeaways

• FAQ

When does an employer need to issue an ROE?

Employers must issue an ROE each time an employee in insurable employment experiences an interruption of earnings. The legal obligation does not depend on whether the employee intends to file an EI claim. Service Canada uses the ROE to administer benefits and verify employment history, making it the single most important document in the EI programme.

What counts as an interruption of earnings? Any situation where an employee stops working or their insurable earnings fall below 60% of their regular weekly pay triggers the requirement. That covers a wide range of events.

Common ROE triggers:

• Termination (with or without cause): an ROE is required regardless of the reason for dismissal

• Temporary layoff or shortage of work: even short-term layoffs require an ROE

• Maternity, parental, or adoption leave: the earnings interruption begins on the first day of leave

• Illness, injury, or quarantine: includes situations where the employee cannot work due to a medical condition

• Voluntary quit: if the resignation creates an earnings interruption, an ROE is still required

• Leave without pay: sabbaticals or personal leaves that stop insurable earnings trigger issuance

Special situations you need to know about:

Service Canada may request an ROE even when no interruption has occurred. The most common scenario involves an employee working two jobs who experiences an interruption at one of them. If that employee applies for EI, Service Canada needs an ROE from both employers to calculate the benefit amount accurately.

Business ownership changes, bankruptcy, and wage-loss insurance plans each carry specific rules. In an ownership transfer where employees continue working without interruption, an ROE may not be required. Payroll account changes, however, often do require one to maintain accurate records.

Part-time, casual, and on-call workers are a common source of confusion. You do not need to issue an ROE every time these workers have a gap of seven days or more. You must issue one when:

• The employee requests it and an interruption has occurred

• The employee has not worked or earned insurable earnings for a prolonged period of consecutive days

• The employee is removed from your active employment list

• Service Canada requests one

Pro Tip: Start the ROE clock from the date earnings actually stop, not from when you finish the paperwork. The deadline is tied to the interruption date, and missing it by even a day can delay your employee’s EI benefits.

For businesses running payroll for professional services, the same federal rules apply regardless of industry or province, including in the Northwest Territories.

What are the deadlines, and what happens if you miss them?

The deadline for issuing an ROE depends on whether you file on paper or electronically, and on your pay cycle frequency.

Paper ROEs must be issued within five calendar days of:

• The first day of the interruption of earnings, or

• The day you become aware of the interruption

Electronic ROEs follow a schedule tied to your payroll frequency:

Most small businesses benefit from filing electronically through Service Canada’s ROE Web platform. Electronic filing reduces errors, allows bulk submissions, and gives employees faster access to their EI benefits.

What happens if you file late? Late ROEs do not typically trigger immediate government fines. The real consequences are more practical. Your employee cannot complete their EI application without the ROE, which means delayed income during what is often an already stressful period. Repeated late filings also affect your compliance record with Service Canada, which can complicate future interactions and filings. The ROE is a neutral administrative document, not a punitive one. Filing it accurately and on time is simply part of your responsibility as an employer.

Correctly completing all ROE blocks matters as much as timing. The reason code (such as Code A for shortage of work, Code E for quit, or Code M for dismissal) must match the actual circumstances. If Code M is used for dismissal, Block 18 should clarify whether the termination was with or without cause.

How T-Ledgers helps small businesses stay on top of ROE compliance

Managing ROE obligations alongside day-to-day operations is one of the more demanding parts of running a small business in the Northwest Territories. T-Ledgers’ CPA-led team handles payroll management and electronic ROE filing as part of a full-service approach to employer compliance.

What T-Ledgers brings to ROE administration:

• CPA-backed knowledge of Canadian payroll law and Service Canada requirements

• Electronic ROE filing aligned with your pay cycle and ROE Web deadlines

• Proactive deadline tracking so interruption dates are captured accurately, not after the fact

• Guidance on special cases including ownership changes, wage-loss plans, and payroll account transfers

• Flat-rate pricing with no surprise fees when your payroll situation gets complicated

Outsourcing ROE management to a qualified accounting firm means you are not relying on memory or a last-minute scramble when an employee leaves. It also means your records are clean if Service Canada ever requests documentation.

T-Ledgers makes payroll compliance straightforward for Canadian employers

Staying compliant with ROE requirements is one piece of a larger payroll puzzle. T-Ledgers offers Canadian small business owners a flat-rate, fully remote accounting service that covers payroll processing, electronic ROE filing, and the kind of proactive compliance monitoring that prevents problems before they start.

Unlike piecing together compliance on your own, working with T-Ledgers means a CPA reviews your payroll setup, tracks interruption dates, and files ROEs within the correct window every time. There are no hourly billing surprises and no gaps in coverage when employment situations get complicated. Their virtual CFO service extends that support to broader financial oversight, giving growing businesses in the Northwest Territories a single trusted point of contact for payroll, tax, and compliance questions.

Ready to hand off the complexity? Contact T-Ledgers to get started with a payroll package built around your business.

Key takeaways

Employers in Canada must issue an ROE for every interruption of earnings, with paper ROEs due within five calendar days of the interruption or the day the employer becomes aware of it, and electronic ROEs due within five calendar days after the pay period ends in which the interruption occurs.

FAQ

When is an ROE legally required in Canada?

An ROE is required every time an employee in insurable employment experiences an interruption of earnings, regardless of whether they plan to apply for EI. Service Canada may also request one in special circumstances, such as when an employee holds two jobs.

What is the deadline for issuing a paper ROE?

Paper ROEs must be issued within five calendar days of the first day of the interruption of earnings or the day the employer becomes aware of it, whichever applies.

Do part-time workers always need an ROE?

Not for every gap in work. A part-time, casual, or on-call employee requires an ROE when they request one, when they have not worked for a prolonged period of consecutive days, when removed from the active employment list, or when Service Canada requests it.

What happens if I file an ROE late?

Late ROEs do not usually result in immediate government penalties, but they delay the employee’s EI benefits and can negatively affect your compliance standing with Service Canada over time.

Can T-Ledgers file ROEs on my behalf?

Yes. T-Ledgers’ payroll services include electronic ROE filing through Service Canada’s ROE Web platform, with CPA oversight to keep your filings accurate and on time.

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