Mark Carney says plan to get more public servants spending more time in the office will come into 'sharper view'
Prime Minister Mark Carney’s signal that federal public servants will soon face tighter return-to-office rules could influence how employers across Canada design hybrid work.
Carney told a business audience in Ottawa that his government’s plan to get public servants spending more time in the office will come into “sharper view” in the coming weeks. Officials will work with unions to set “appropriate levels” of in-person work by role and seniority, rather than impose a single standard across the federal workforce, according to a report by CTV News.
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The shift comes as Ottawa moves to shrink and restructure the public service. Carney has said the civil service grew to an “unsustainable size” over the past decade, with many reductions expected through standard and early retirements and “other adjustments.” The federal budget outlines a plan to cut 28,000 positions by 2029, framed as part of a “transformation of the public service” toward more creative, higher-impact jobs, supported by artificial intelligence for routine tasks.
For Canadian employers, the combination of a stricter line on hybrid work, planned job cuts and greater use of AI creates a new reference point for workforce strategy.
First, a federal, role-based model may raise expectations for clearer justifications around hybrid arrangements. Carney has said in-office requirements will differ “depending on individual roles and seniority,” echoing the approach many HR teams are considering but have not fully formalized. Private employers may face growing pressure from employees, unions and regulators to explain why some positions must be mostly on site while others remain largely remote.
Second, collective bargaining over federal return-to-office rules is likely to ripple into other sectors. Ottawa’s plan to negotiate in-office thresholds with public-sector unions could be cited at bargaining tables in health care, education, financial services and other unionized environments, particularly where pandemic-era “temporary” remote arrangements were never fully codified.
Third, local governments are tying office occupancy to downtown recovery. After Carney’s comments, Ottawa Mayor Mark Sutcliffe said adding “another day or two” in the office for federal workers is realistic, arguing the city wants its core “thriving and prosperous” after COVID. City employees are preparing to return to the office five days a week. Similar pressure from municipalities and business groups could intensify in other urban centres, increasing scrutiny on employers that remain heavily remote.
Finally, the federal focus on using AI for the “less interesting components” of public sector work suggests in-person time will be expected to centre on higher-value activities such as collaboration, innovation and client service. Employers redesigning jobs around automation may face expectations to similarly rethink how and why employees are brought on site, rather than simply adding office days to pre-pandemic routines.
