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

Thousands of federal workers have applied for early retirement packages as the federal government looks to trim the public service. CTV’s Austin Lee reports.

OTTAWA — Thousands of federal public servants are starting 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, is set to deliver remarks at a demonstration in front of the Prime Minister’s Office on Monday morning to denounce the new rules.

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.

“Carney needs to explain, clearly and with evidence, why his government is forcing workers back into offices when the public rationale and $40 billion of costs, plus likely hundreds of millions in commercial real estate costs and maintenance, do not add up at a time of deep cuts to programs and services,” the union said in a news release Thursday.

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.

Catherine Morrison, The Canadian Press