Your obligations when an employee leaves
When an employee leaves your business, you must calculate that person's earnings and deductions, prepare a T4 Summary, and complete a Record of Employment (ROE). If you dismiss an employee, you will usually have to provide pay in lieu of notice and severance pay.
Generally, you need to complete a T4 slip (a statement of remuneration paid) if you paid your employees employment income, commissions, taxable allowances and benefits, fishing income, or any other payments during the taxation period.
You are also required to issue an ROE each time one of your employees leaves, either permanently or temporarily. There are two main ways you can issue ROEs: electronically or on paper. Electronic ROEs are more efficient than paper ROEs.
Find out about the requirements in your jurisdiction.
- T4 — Information for employers
Find out how to complete and file a T4 slip, a form that states the wages paid to and taxes withheld from an employee, and obtain downloadable and printable forms.
- Record of Employment on the Web (ROE Web)
Use this secure application to create, submit and print Records of Employment (ROEs) via the Internet in preparation for the interruption of employee earnings.
- ROE Web Benefits
Watch this Service Canada video to find out the benefits to your business when you file Records of Employment online.
- Departing employees
Find information you need when employees leave, such as employment insurance, the Record of Employment, exit interviews, and the Supplemental Unemployment Benefit Plan.
- Termination, layoff or dismissal (Federally Regulated Workplaces)
Find out when a layoff is considered a termination and what your obligations are with regards to providing notice and severance pay.
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