Office space scarce as federal public servants return to the office four days a week

OTTAWA — Thousands of federal public servants started a new work schedule Monday that will see them on-site in the office four days a week, though a lack of office space is delaying the return for some departments.

The Treasury Board announced the change to remote work rules in February. Executive public servants returned to the office full-time in May.

Jeffrey MacDonald, a spokesperson for Immigration, Refugees and Citizenship Canada, said most of the department’s employees will work on-site only three days a week until the department secures enough office space. Managers will have to work on-site four days a week.

Health Canada and Public Health Agency of Canada spokesperson Mark Johnson said while most of their offices have enough space, some areas may have “localized space challenges.”

“In a small number of regional offices, implementation will be staggered beginning July 6, 2026, due to local space limitations,” said Johnson.

Natalie Huneault, a spokesperson for Employment and Social Development Canada, said the department is implementing the new rules but some locations still need more space to accommodate employees.

Jason Kung, a spokesperson for Global Affairs Canada, said the department is undertaking a multi-year renovation project that’s affecting the availability of office spaces. The project includes renovations of its headquarters and other buildings in the Ottawa area.

Until there is enough workspace available, Kung said, all managers and deputy directors will be required to work on-site four days per week, which will be phased in between July 6 and September 15. He said all other employees in the National Capital Region, as well as some employees in regional offices, will continue to be required to work on-site three days per week.

“As renovation projects advance and additional renovated space becomes available, on-site presence will increase in line with (Treasury Board of Canada Secretariat) direction, ensuring employees have the space needed to carry out their work effectively,” said Kung.

Most public servants were told to work remotely when the COVID-19 pandemic hit in March 2020. Core federal employees have been working three days in-office since September 2024, after the standard increased from two days.

Federal unions have fought the government’s back-to-office directives and some have filed unfair labour practice complaints.

Nathan Prier, president of the Canadian Association of Professional Employees, said the union received federal documents through an access to information request that estimates the government could save almost $40 billion by reducing the amount of office space it requires.

The 2022 document, obtained by The Canadian Press, says PSPC estimates report the government could save $19 billion with a 40 per cent reduction over 10 years, $28.6 billion with a 50 per cent reduction over 10 years and $39.1 billion with a 70 per cent reduction over 10 years.

“If we downsize our real estate footprint because more federal public servants are able to work from home or at least have the option to do so, we can start downsizing a lot of our office real-estate footprint which costs billions of dollars per year,” Prier said Monday during a rally outside the Office of the Prime Minister and Privy Council.

The union argues the return-to-office order is a “handout” to four banks — CIBC, National Bank, BMO and RBC — to protect their roughly $10 billion worth of commercial real estate office exposure.

The 2024 federal budget said reducing the federal office footprint would generate “substantial” savings of $3.9 billion over the next 10 years, and $900 million per year after that.

Speaking to reporters Monday, Minister of Finance François-Philippe Champagne said that assessment was done when the government was looking at a different way to organize how people work.

“We need to revise that, and we’ve been working with the Treasury Board to adjust that and do that in the most efficient manner,” he said.

Champagne said the government has made adjustments to office infrastructure because it wants all public servants to be housed properly in the office.

“We need to bring people back to deliver service to Canadians,” he said.

About 30 members of the Canadian Association of Professional Employees rallied on Parliament Hill Monday morning, and some explained why they want to continue to have flexible working arrangements opposed to mandatory days in the office.

One man said his husband is on immuno-suppressing medication, and was told by his doctor that a note requesting a workplace accommodation “wasn’t worth his time” as it would require recurring notes.

Another civil servant at the rally said that people are losing one to three hours in “unpaid work” commuting to offices to have Zoom meetings. She said that they should be paid for that time or receive more vacation.

Prier argued that having a mandatory four days back in the office is being done based on “vibes” and issues remain in having offices that are actually set up to accommodate civil servants.

“We’re just clawing our way back to getting things like assigned seating when we do have to go to the office. So people are stacked on top of each other, they’re sitting for two hours, three hours, depending on the city you live in, commuting to offices just to do virtual work, remote work from the office,” he said.

Sean O’Reilly, president of the Professional Institute of the Public Service of Canada, said in a post on the union’s website last week that members are frustrated, disappointed and angry about the new rules.

“From the beginning, we opposed a one-size-fits-all return-to-office mandate and advocated for a presence-with-purpose approach based on operational need,” said O’Reilly, who added that the union has filed policy grievances, launched an unfair labour practice complaint and escalated matters to the Federal Public Sector Labour Relations and Employment Board.

“PIPSC will continue challenging this policy through legal, bargaining, public and political channels.”

Some members of Parliament have also pushed back against the updated policy.

MP Bruce Fanjoy represents the Ontario riding of Carleton, which is home to more than 10,000 public servants. Since the new policy was announced earlier this year, Fanjoy has pushed for a “flexible” hybrid model with a mix of in-office and remote work.

“I think that we can do better than a one-size-fits-all return to office policy,” he told The Canadian Press on Friday. “You want to make sure that government services are provided effectively and efficiently, and there’s no reason to make life more difficult for people who are providing those services.”

Fanjoy acknowledged several departments are short of office space and said that shows that the policy is “practically difficult to accommodate.”

The MP said he hasn’t seen evidence the policy will boost productivity and argues hybrid work can cut costs for the government and reduce traffic and pollution.

“I just think that the benefits of flexibility far outweigh any other alternative,” he said. “I’m not afraid to let people know where I stand on this issue.”

This report by The Canadian Press was first published July 6, 2026.

— With files from David Baxter

Catherine Morrison, The Canadian Press