When an individual or group stops working because there is a break or an interruption of earnings due to layoff, retirement, resignation or dismissal, you will need to complete the Record of Employment.
You can do this online at the Service Canada website or by other electronic methods.
What is a Record of Employment?
The Record of Employment is an accurate report of the:
- Number of insurable hours worked
- How long the employee worked for your company
- The employee benefit rate they will be paid
The employer has 5, 7 or 15 calendar days to complete this form when the employee stops work.
Accuracy is important. If the amounts are not calculated correctly, the employee will be required to repay the overstated amount. In addition, the employee can be disqualified and will not be able to collect the benefits they are entitled to.
When is the Record of Employment issued?
A Record of Employment is issued when requested by Service Canada or an employee – or for an employee with a break in employment as follows:
- Employee has had 7 consecutive calendar days* without both work and insurable earnings in the last 52 weeks of employment by the same employer
- Employee’s the salary falls below 60% of regular weekly earnings because of illness, injury, quarantine, pregnancy, the need to care for a newborn or an adoption of a child or the care for family member at risk of death
*the 7 days rule does not apply to the following:
- Real estate agents. Unless the agent’s license is surrendered, suspended, revoked or stops working because of illness, injury, quarantine, pregnancy, care of a newborns, adopted a child or care for family member who is risk of death.
- Commissioned salespersons. If the income is mainly of commissions it is only insurable when the contract is terminated, employee stops working because of illness, injury, quarantine, pregnancy, care of a newborns, adopted a child or care for family member who is risk of death.
For more information, see What should you do if an employee leaves?.
Need Help? Let us look after your Payroll and Year End
As an employer, you will need to process the payroll and file the slips, information return and reports for the year end. We can help you with T4, T4A, T5, T5018 processing. Get this done by Feb 28, 2017.
We can help keep you current with the following:
- Hiring new employee(s)
- Processing pay cheques
- Remitting payroll liabilities
- Filing reports
With our Payroll Services, we record payroll hours, print pay cheques, calculate WCB and remit the payments, including pensions and other plans. We can also help you decide on the benefits to offer employees. Our policy is to deduct, pay and remit the payments to the government agency or 3rd party.
Contact Ina for a free consultation.
