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Understanding ROE codes

How to select the correct ROE termination code when terminating an employee.

Hal avatar
Written by Hal
Updated over a year ago

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

  • Employment ends due to end of contract or season

  • End of casual/part-time work that is not a dismissal or suspension

  • A temporary stop to operations

  • The position is eliminated or made redundant

  • Company is restructuring

  • Employer goes bankrupt

M - Dismissal or Suspension

  • The employer initiates the separation from employment for any reason other than layoff or mandatory retirement

  • Can also be when the employee is suspended from their employment, OR

  • Employment is terminated within a probationary period because the employee was not well suited for the position

    • Specify if employee was terminated within a probationary period when prompted

Voluntary Terminations

Code

When to use this code:

D - Illness or Injury

  • The employee is leaving work temporarily because they are ill or injured

  • For a pregnant employee who is experiencing an interruption in earnings due to illness first, and then because of maternity leave

E - Quit

  • The employee initiates the separation from employment. If the reason is known, include it when submitting a termination:

    • Follow spouse

    • Return to school

    • Health reasons

    • Voluntary Retirement

    • Take another job

    • Employer relocation

    • Care for a dependant

    • To become self-employed

F - Maternity

  • A person who is pregnant or has recently given birth and is leaving the workplace to take maternity leave.

  • Note: does not apply to adoptive parents or a parent who is not pregnant or who has not given birth. Use code P instead.

  • If the pregnant employee is experiencing an interruption in earnings for illness before giving birth, choose code D.

N - Leave of Absence

  • The employee is leaving the workplace temporarily to take an unpaid leave of absence

  • Does not include:

    • Illness or injury, maternity leave, parental leave, compassionate care leave, or leave for a caregiver providing care to a critically ill or injured person as these have corresponding codes.

P - Parental

  • The employee is leaving the workplace temporarily to take parental or adoption leave.

    • Not to be confused with maternity leave, for someone who is pregnant or recently gave birth and is taking a leave

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.


Code


Type


When to use this code:


B - Strike or Lockout


Involuntary

  • An employee is on strike or has been locked out of the workplace


G - Retirement


Involuntary

  • The employee is leaving the workplace because of mandatory retirement or through a Work Force Reduction approved by Service Canada


H - Work-sharing


Voluntary

  • The employee is participating in the Service Canada Work-Sharing Program


J - Apprentice Training


Voluntary

  • The employee is leaving the workplace temporarily to participate in a government-approved apprenticeship training program


Z - Compassionate Care/Family Caregiver


Voluntary

  • The employee is leaving the workplace temporarily to claim compassionate care benefits, or family caregiver benefits


K - Other


Voluntary/ Involuntary

  • Only in exceptional circumstances, if none of the above codes apply. Examples include, but are not limited to:

  • Change in payroll/ownership or company name.

  • Change in pay period type.

  • Death of an employee.

  • Service Canada has requested the ROE.

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.



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