Hi there! Let’s unpack this –

ROE Coding and EI Eligibility

The Record of Employment (ROE) coding is meant to communicate to Service Canada the reason for an employee’s interruption of earnings, not necessarily the legal cause of termination under the Labour Relations Code or your internal policies.

If you code “Dismissal” (Code M) — Service Canada will typically treat this as “termination for cause”, which triggers a review of EI eligibility. The claimant may have to prove they did not lose their job due to “misconduct” (a specific EI term meaning willful or reckless disregard for the employer’s interests).

If Service Canada determines the conduct was not “misconduct” in the EI sense, they can still approve benefits.

However, coding “M” may delay payment while they investigate.

If you code “Other” (Code K) or “End of Contract/Employment Ended” (Code A) with an explanation such as “Did not meet contractual audit compliance requirements” — Service Canada will not automatically flag it as “misconduct.”

This allows the individual to apply for EI immediately, and Service Canada will follow up if clarification is needed.

You’re not misrepresenting facts — you’re describing the cessation accurately without making a “for cause” assertion in the EI sense.

Recommendation:
In your case — since this dismissal arose from a failure to meet a contractual audit standard (not insubordination, theft, or intentional misconduct), it’s reasonable and accurate to code the ROE as “Other (K)” or “End of Contract (A)” with a clear note like:

“Employment ended due to failure to meet safety audit compliance requirements per Safety Management Plan.”

This allows the employee to apply for EI while preserving your documentation and internal reasoning.

Unionized Environment Without a Collective Agreement Yet

Until the collective agreement (CA) is ratified and in effect:

The Labour Relations Code (LRC) governs the employment relationship (not the Employment Standards Act, ESA).

However, ROEs are federally regulated (Service Canada / EI) and not determined by the LRC or the ESA.

So, your ROE coding obligation doesn’t change simply because you are newly certified as a union — the same federal EI principles apply.

The “just and proper cause” requirement in the union context affects grievance and reinstatement rights, not ROE classification. So you can absolutely choose an ROE reason that doesn’t imply misconduct, even while asserting just cause internally if challenged.

Once the Collective Agreement (CA) Comes Into Effect

When your collective agreement is finalized, dismissals will:

Be subject to grievance and arbitration procedures, and

Require “just cause” as defined in your CA (often more protective than ESA standards).

However:

ROE coding does not change based on whether a CA is in place.

It remains a matter of federal EI reporting, independent of the union contract.

You would still issue an ROE for any termination or layoff using the same coding principles: accurately describing the situation without unnecessarily limiting the employee’s EI access.

-HRInsider Staff