Which ROE reason code should I use in Block 16?
An ROE takes one reason code in Block 16, from 13 active letters. The common ones are A for shortage of work or end of contract, E for a quit, M for a dismissal or suspension, D for illness and F for maternity. When several reasons apply, enter the one that applied first. Code C is being phased out.
What does each ROE reason code mean?
Block 16 needs one code on every ROE, for full time, part time and casual employees alike, plus the full name and phone number of a contact person who can explain the reason. If more than one reason applies, enter the code for the one that applied first canada.ca.
| Code | Reason | Use it for | Watch for |
|---|---|---|---|
| A | Shortage of work or layoff | End of a contract or season, end of casual or part time work, end of the school year, shutdowns, eliminated positions, restructuring, bankruptcy or receivership | The most used code; a student finishing a fixed summer term is also A |
| B | Strike or lockout | Employee on strike or locked out | None |
| C | Return to school | Being phased out | Use E for leaving to go back to school, or J for an approved apprenticeship |
| D | Illness or injury | Temporary leave for illness or injury | If illness comes before maternity leave, D stays |
| E | Quit | Any separation the employee starts: another job, following a spouse, school, voluntary retirement, health reasons | Paper ROEs need a comment; ROE Web has a drop down |
| F | Maternity | Only a person who is pregnant or recently gave birth | Not for the other parent |
| G | Retirement | Mandatory retirement or an approved Work Force Reduction | Voluntary retirement is E |
| H | Work Sharing | Employee in the Service Canada Work Sharing Program | None |
| J | Apprentice training | Temporary leave for a government approved apprenticeship | None |
| K | Other | Exceptional cases only, such as a change in ownership, company name or pay period type, a death, or a Service Canada request | Always needs a Block 18 explanation |
| M | Dismissal or suspension | The employer ends the job for any reason other than layoff or mandatory retirement, or suspends the employee | Firing within probation is M |
| N | Leave of absence | Temporary unpaid leave | Not illness, maternity, parental, compassionate or caregiver leave |
| P | Parental | Temporary parental or adoption leave | The birth parent on maternity leave is F |
| Z | Compassionate care or family caregiver | Temporary leave to claim those EI benefits | None |
Leave C aside and 13 active letters remain. Each ROE carries exactly one of them, so a second reason never goes in Block 16.
Which code wins when the facts are messy?
Most disputes come from a handful of situations where two letters look right. Service Canada settles each one in its ROE guide canada.ca.
| Situation | Code | Why |
|---|---|---|
| Fixed term contract or season ends | A | End of contract counts as shortage of work |
| Employee retires by choice | E | The employee started the separation |
| Mandatory retirement or approved Work Force Reduction | G | Only these two use G |
| Fired during probation | M | Any employer ended job other than layoff or mandatory retirement |
| Employee suspended | M | Suspension shares the dismissal code |
| Employee leaves to go back to school | E | C is being phased out |
| Sick leave, then maternity leave | D | The reason that applied first wins |
| Unpaid sabbatical or personal leave | N | Unpaid leave that is not one of the benefit leaves |
| Employee dies | K | Explain in Block 18 |
| Change in ownership, company name or pay period type | K | Explain in Block 18 |
Two cases need no new code at all. When an employee on sick leave starts maternity leave, you don't amend the D ROE. And a switch of payroll service provider doesn't require new ROEs: the old provider can keep issuing them until the new one takes over canada.ca.
When does a leave code apply while the employee is still paid?
A leave code doesn't wait for pay to stop entirely. For illness, injury or quarantine, maternity, parental, compassionate or family caregiver leave, an interruption of earnings happens when pay falls below 60% of regular weekly earnings, and it starts on the Sunday of that week canada.ca.
Worked example: your client's employee normally earns $1,200 a week. 60% of that is $720. She goes on sick leave on Wednesday, October 14, 2026, and her pay for that week is $480. Since $480 is below $720, the interruption starts on Sunday, October 11, 2026, and the ROE goes out with code D. Had she earned $750 that week, there would be no interruption yet.
The 60% test only applies to those leave reasons. A quit, a dismissal or a layoff runs on the usual 7 day rule, covered with the filing dates on the Record of Employment deadline page.
Does code E or M stop the employee getting EI?
Not by itself. Service Canada uses the information on the ROE to decide whether the person qualifies for EI, and it makes that decision, not the code canada.ca. The code points the agent at the right question, which is why Block 16 asks for a contact person.
The question for E and M is section 30 of the Employment Insurance Act: a claimant is disqualified if they lost a job because of their misconduct or voluntarily left without just cause. The disqualification is lifted if they have since worked enough insurable hours to qualify again laws-lois.justice.gc.ca.
Just cause under paragraph 29(c) means no reasonable alternative to leaving. The listed circumstances include harassment, moving with a spouse or dependent child, unsafe working conditions, significant changes to pay or duties, and reasonable assurance of another job soon. Paragraph 29(b.1) also treats refusing to resume a job as voluntarily leaving laws-lois.justice.gc.ca.
So pick the code that matches the facts, not the outcome you or the employee want. Knowingly giving a false reason can lead to fines or prosecution canada.ca, and Service Canada says an employer who falsifies an ROE can face up to $12,000 per Record of Employment
canada.ca.
When should you add a Block 18 comment?
Only when the code needs it. Comments send the ROE to manual review, which slows the claim, and Service Canada asks you not to write comments that only repeat what the form already says canada.ca.
Code K always needs a Block 18 explanation. On a paper ROE, E, an approved Work Force Reduction under G and probation M also take a short comment (for example, that the employee left to take another job). In ROE Web you pick the matching option from a drop down instead of typing it canada.ca.
How do you fix a wrong reason code?
You can't cancel an ROE once it's issued. Issue an amended ROE instead, and complete every block, not just Block 16. If the ROE should never have been issued, the amended one says in Block 18 that the previous ROE was issued in error canada.ca.
In ROE Web, search for the original, make the change and submit it, and the amended ROE gets a new serial number canada.ca. A paper ROE you still hold all three copies of can be corrected by striking out and initialling, never with correction fluid
canada.ca.
An employee on leave who never comes back is a common gap. If the separation brings no extra payments, the original D, F, P or N ROE stands with no amendment. If you make additional payments because of the separation, issue an amended ROE canada.ca. The earnings side of that amendment is on the ROE insurable earnings page.
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Is a probation termination coded M or A?
M. Service Canada puts a termination within the probationary period under dismissal, and a paper ROE adds a comment saying so canada.ca. Use A only when the job ends for shortage of work.
Which code do I use when an employee retires?
E, if the employee chose to retire. G is only for mandatory retirement or an approved Work Force Reduction canada.ca.
Which code goes on an ROE after an employee dies?
K, with an explanation in Block 18. A death is one of the exceptional cases Service Canada lists under K canada.ca.
Can the employee get EI after a code E ROE?
Yes, if Service Canada finds just cause for leaving under section 29 of the Employment Insurance Act, such as harassment or moving with a spouse laws-lois.justice.gc.ca. The code starts the question; it doesn't decide it.
General information for the tax year shown, not advice for a specific client. Confirm the facts before you file or remit.