ROE Codes: Complete List of Record of Employment Reason Codes (2026)

ROE Reason Codes — Quick Reference

The reason code in Block 16 of the Record of Employment is the most-scrutinized field on the entire form. Service Canada uses it to determine whether the employee qualifies for Employment Insurance (EI) — and how quickly. Choosing the wrong code can delay or deny benefits, expose the employer to a Service Canada review, and create disputes with former employees.

This guide covers all 14 ROE reason codes with employer examples and the EI implications of each.

Code A — Shortage of Work / Layoff

The single most common ROE code in Canada. Use Code A whenever the employer has eliminated the employee's work, including:

• ●Permanent layoff due to business slowdown or restructuring
• ●Temporary layoff (with or without recall date)
• ●End of a fixed-term contract
• ●End of a seasonal job (construction, landscaping, agriculture, tourism)
• ●Business closure
• ●Position elimination

Code A is generally a "no-fault" code — the employee did nothing wrong, and the employer simply has no work for them. EI eligibility is straightforward, subject to having enough insurable hours.

Code B — Strike or Lockout

Use Code B when the employee is not working because of:

• ●A legal strike by the employee's union
• ●A lockout by the employer

EI is generally not payable during a strike or lockout, but the ROE is required so Service Canada can establish a record. If the employee returns to work after the dispute, no further ROE is required unless there is a new interruption of earnings.

Code C — Return to School

Use Code C when the employee is leaving employment to attend school full-time. EI is generally not payable to students unless they qualify for an EI training benefit. Apprentices in approved programs use Code J instead.

Code D — Illness or Injury

Use Code D when the employee cannot work due to:

• ●Personal illness (any duration that triggers an interruption of earnings)
• ●Workplace injury (also requires WCB/WSIB filing)
• ●Quarantine
• ●Short-term or long-term disability that interrupts earnings

The employee may be eligible for EI Sickness Benefits (up to 26 weeks). Code D is one of the most common ROE codes after Code A.

Code E — Quit (Voluntary Resignation)

Use Code E when the employee voluntarily resigns. Code E triggers a Service Canada review — the employee must demonstrate they had "just cause" to quit (e.g., harassment, unsafe workplace, significant change in working conditions) to qualify for EI.

If the employee did not have just cause, EI will be denied. Common scenarios that DO qualify as just cause: - Harassment or discrimination - Significant unilateral change to wages, hours, or duties - Health and safety risk - Care of a family member - Following a spouse who relocated for work

Common scenarios that do NOT qualify as just cause: - Better job opportunity elsewhere - Personal preference - General dissatisfaction with the role

Tip for employers: If an employee resigns under disputed circumstances, document the resignation (email, signed letter) and use Code E with detailed comments in Block 18.

Code F — Maternity

Use Code F when the employee is taking maternity leave. This code is reserved for the birth mother only. The employee is eligible for EI Maternity Benefits (up to 15 weeks). The other parent uses Code P (Parental) for parental leave.

The employee must take their maternity leave within a defined window around the child's birth (typically up to 12 weeks before the due date and ending 17 weeks after the actual birth date).

Code G — Mandatory Retirement

Use Code G only when there is a contractually-mandated retirement age (rare in Canada outside of certain regulated professions like commercial pilots, judges). EI is generally not payable.

If the employee is voluntarily retiring (no contractual mandate), use Code E (Quit) instead.

Code H — Work-Sharing

Use Code H when the employee is participating in the federal Work-Sharing program — a program that allows employers experiencing temporary downturns to reduce employee hours rather than lay them off, with EI making up some of the lost income.

Work-Sharing requires a pre-approved agreement with Service Canada.

Code J — Apprentice Training

Use Code J when the employee is leaving work to attend government-approved apprenticeship training (block release). The employee may be eligible for EI during the training period.

Code K — Other (Requires Specification)

Use Code K only when none of the other codes apply. You must include detailed comments in Block 18 explaining the situation. Common Code K uses:

• ●Change in CRA business number (employee transferred to a related entity)
• ●Change in pay period type
• ●Change in payroll software requiring a new ROE
• ●Employee taking an unusual leave not covered by other codes
• ●Death of employee (some payroll systems use Code K with comments)

Code M — Dismissal

Use Code M when the employer terminates the employee for cause — i.e., the employee did something that justified termination. Examples:

• ●Misconduct (theft, dishonesty, violence, harassment of others)
• ●Repeated performance issues after written warnings
• ●Breach of company policy
• ●Refusal to perform reasonable work duties

Code M triggers a Service Canada review. The employee will be asked to explain the dismissal, and the employer may be asked for documentation. If Service Canada determines the dismissal was justified, EI may be denied.

Important: Termination "without cause" (no misconduct, simply employer's decision) is NOT Code M — it's Code A (layoff). This is a frequent and costly mistake. If you use Code M and cannot demonstrate cause, you face wrongful dismissal exposure.

When in doubt, consult an employment lawyer or your payroll provider before issuing a Code M ROE.

Code N — Leave of Absence

Use Code N for any approved leave of absence not covered by another specific code:

• ●Personal leave (sabbatical, extended vacation)
• ●Bereavement leave (extended)
• ●Reservist leave (unless covered by a specific provincial rule)
• ●Educational leave (employer-approved, not full-time school)

EI eligibility depends on the reason for the leave.

Code P — Parental

Use Code P when the employee is taking parental leave following the birth or adoption of a child. Available to either parent (the birth mother takes Code F first, then Code P for parental portion).

The employee can choose between: - Standard Parental: Up to 40 weeks (one parent can take up to 35 weeks), at 55% of insurable earnings - Extended Parental: Up to 69 weeks (one parent can take up to 61 weeks), at 33% of insurable earnings

Code Z — Compassionate Care / Family Caregiver

Use Code Z when the employee is taking leave to care for a critically ill or dying family member. The employee may be eligible for:

• ●Compassionate Care Benefits: Up to 26 weeks
• ●Family Caregiver Benefits: Up to 15 weeks (for adults) or 35 weeks (for children)

A medical certificate is required.

Avoiding Costly Code Mistakes

The two most expensive ROE code mistakes:

1. Using Code M when you should use Code A. This exposes you to a wrongful dismissal claim from the employee. 2. Using Code A when you should use Code M. This costs Service Canada and the EI program — and can be flagged in a payroll audit.

If you're unsure whether a termination is "with cause" or "without cause," default to Code A and consult a lawyer before changing it. A wrong Code A can be amended with no penalty; a wrong Code M creates legal exposure.

How Outsource Bookkeeping handles ROE codes

For our payroll clients, we: 1. Discuss the reason for the interruption with the employer before issuing 2. Apply the correct code based on Service Canada's guidance 3. Add detailed Block 18 comments where required 4. File electronically within 48 hours

This eliminates the most expensive risk in Canadian payroll. [Book a free consultation](/contact) to discuss our payroll service.

Related guides

• ●[Record of Employment (ROE) Complete Employer Guide](/blog/record-of-employment-canada-guide)
• ●[Vacation Pay Calculation by Province](/blog/vacation-pay-bc)
• ●[Monthly Bookkeeping Checklist](/blog/monthly-bookkeeping-checklist)