ROE Coding For Union Employee Dismissals

[Aleesha Van Damme]

#97362

Forum: Community

We are unionized, but we are not yet governed by a collective agreement. We have had to dismiss an employee because of a contractual obligation to our Safety Management Plan and not meeting our 100% audit requirement following a field error and subsequent re-training. My question is around ROE coding for EI eligibility.

As a union, we can only dismiss having just and proper cause but can I code the ROE ‘without cause’ so that this employee can still apply for EI? It would be for cause with the union but certainly isn’t sever or substancial enough to warrant a ‘for cause’ termination under the ESA. (which no longer governs our employees because the LRC now does).

Additionally, does the ROE coding change once the CA comes into effect?

Thank you

[Haley O’Halloran]

#97365

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

[Aleesha Van Damme]

#97366

Thank you. One last question, can you confirm that we would still be required to pay PILON per ESA for this kind of termination and with a Collective Agreement in place?

[Haley O’Halloran]

#97367

Under the BC Employment Standards Act, you must provide notice or pay in lieu unless the termination meets the definition of “just cause” under the ESA.

“Just cause” under the ESA is a high threshold — it generally means serious misconduct (e.g., theft, fraud, violence, gross insubordination).

Failure to meet contractual or performance requirements, even significant ones like an audit compliance failure, usually does not meet the ESA’s “just cause” test.

So:
If this dismissal was due to failure to meet safety audit compliance requirements (i.e., not willful misconduct), you would still owe ESA termination pay or working notice unless your internal policies or contract provide greater entitlement.

Effect of a Collective Agreement (CA)

Once a collective agreement is in place, ESA termination notice/PILON provisions are typically replaced by the CA’s just-cause and grievance provisions.

The ESA termination and severance sections stop applying (per s. 3(2)(b) of the BC ESA) once the employee is covered by a collective agreement that provides for termination and dispute resolution procedures.

The union grievance/arbitration process becomes the enforcement mechanism.

Whether an employee receives any pay in lieu or reinstatement depends on how the arbitrator interprets “just cause” in the CA.

So:

Before the CA is in effect: You must comply with ESA notice or PILON rules unless you can prove just cause under the ESA.

After the CA is in effect: ESA notice/PILON rules no longer apply — instead, “just cause” under the CA governs whether any compensation or reinstatement is owed.

One last practical tip: Even if you code the ROE as “Other (K)” for EI purposes (which is fine and recommended to avoid an EI delay), that doesn’t change your ESA or CA obligations regarding pay in lieu. Those are separate systems — the ROE is federal (EI), while termination pay is provincial (ESA or CA).

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