If you are a Collage managed payroll customer, you will be asked to provide an ROE termination reason code when terminating an employee. This article will walk you through the termination codes on our platform and when to select them.
Overview
When an employee has an interruption of earnings, in most cases by way of going on leave or terminating employment, employers are required to issue a Record of Employment (ROE).
As per Service Canada, the ROE is the single most important document in the Employment Insurance (EI) program and therefore a crucial document to be completed accurately.
Along with employment information, the reason for issuing the ROE is required and provides important information to Service Canada. It is important to select the correct reason that corresponds to circumstances resulting in the interruption of earnings.
Note that it is a serious offence to misrepresent the reason for issuing an ROE. If you knowingly enter a false or misleading reason for issuing an ROE, you may be subject to fines or prosecution.
Common ROE Codes
The most common reasons for issuing an ROE, as set by Service Canada, are displayed below along with helpful details to determine when or why to use each reason.
Involuntary Terminations
Code | When to use this code: |
A - Shortage of Work/Layoff |
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M - Dismissal or Suspension |
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Voluntary Terminations
Code | When to use this code: |
D - Illness or Injury |
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E - Quit |
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F - Maternity |
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N - Leave of Absence |
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P - Parental |
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Other ROE codes
Below is a list of other less common ROE codes that may apply to a termination. If you did not see your reason in the common ROE codes but see it in the list below, please reach out to our support team and let us know when terminating an employee.
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If you use reason K - Other, you must add additional information in the termination reason, to be included in Box 18 of the ROE. This reason should only be used when no other reason adequately represents the reason for leave or termination, as it removes the ROE from the automated processing system and requires manual review by Service Canada.
If you are unsure which reason applies to your employee’s situation, contact us for support.