Question Period Note: Aligning the Office Portfolio with Workplace Presence Requirements

The Government’s decision to increase onsite presence for executives and employees eligible for hybrid work represents a change in direction that affects the Office Portfolio Reduction Plan, which was announced as part of Budget 2024, with implications still under assessment.

• Workplace presence parameters are established by the Government and led by the Treasury Board of Canada Secretariat, including engagement with bargaining agents
  • Public Services and Procurement Canada is committed to providing sufficient and functional office space that supports government priorities while ensuring responsible use of public funds
  • Budget 2024 committed Public Services and Procurement Canada to reducing its office portfolio by 50% over the next 10 years. In light of increased onsite presence requirements, this reduction target will be adjusted accordingly, and planning to that effect is currently underway
  • While capacity is sufficient in many locations, localized pressures are being observed as onsite presence increases. These are being validated with departments and will be addressed over time through targeted solutions
  • Public Services and Procurement Canada is working with tenant departments and agencies to rapidly deliver efficient solutions by optimizing underutilized space, renewing existing leases where required, when requirements cannot be met within the existing portfolio

If pressed on building condition:

• the health and safety of occupants is a priority, and Public Services and Procurement Canada will not accommodate employees in office space that does not adhere to Treasury Board policies or meet applicable health and safety code requirements
• buildings are continuously monitored and assessed to ensure conditions remain safe, functional, and compliant with legislative and regulatory requirements
• integrated pest management is part of regular building operations in large commercial real estate assets. All pest reports are taken seriously, promptly reviewed, and addressed using industry-approved methods
• where building condition or pest-related issues are identified, mitigation measures are put in place, including repairs, enhanced monitoring or relocation within the portfolio if required
• space planning decisions consider building condition alongside operational needs

If pressed on unassigned seating:

• the Government is moving toward assigned seating as the default workplace approach to support increased onsite presence. Some departments and agencies may continue to use unassigned seating where it supports their operational requirements, organizational culture, or space management needs
• unassigned seating may also be used as an interim measure while assigned seating solutions are being implemented
• Public Services and Procurement Canada is working with departments and agencies to implement practical accommodation solutions, including furniture replacement, reconfiguration and space optimization where required
• these solutions will be implemented in a structured and cost-effective manner to support the return of the maximum number of employees to four days per week onsite, while avoiding unnecessary costs

If pressed on GCcoworking spaces:

• Public Services and Procurement Canada is maintaining GCcoworking operations at selected locations on a temporary basis to support increased in-office presence. These locations will be transitioned as departments move toward longer-term accommodation solutions, with site-specific changes communicated directly to affected users
• as government direction on onsite presence evolves, the department is assessing how all available space, including GCcoworking sites, can best support operational requirements
• options under consideration include adapting these spaces to support broader accommodation needs
• Public Services and Procurement Canada will continue to ensure that space is used efficiently and that investments support safe, functional and cost-effective workplaces aligned with government priorities

Public Services and Procurement Canada (PSPC) is responsible for the management of general purpose office space, while departments and agencies remain responsible for specialized facilities such as laboratories and secure operational spaces, and Crown corporations manage their own real property portfolios. In recent years, workplace planning has been informed by a hybrid work model, with employees splitting their time between working remotely and in the office.

The initial Office Portfolio Reduction Plan used to develop the Budget 2024 proposal assumed an average of two to three-day in office presence and unassigned seating by default.

On February 5, 2026, the Government announced an increase to onsite presence for executives as of May 4, 2026. For all other eligible employees, the intention was that they be required to be onsite four days per week as of July 6, 2026. Implementation discussions with bargaining agents will be led by the Treasury Board of Canada Secretariat.

The February 2026 announcement to further increase onsite presence will place additional pressure on office space requirements. PSPC is reassessing the office portfolio on a site-by-site basis to identify feasible opportunities to optimize space, consolidate where practical, while continuing to support departments’ operational requirements.

PSPC remains committed to exploring opportunities for controlling operational costs and will continue working with tenant departments and agencies to optimize the use of office space within the PSPC-administered office portfolio.

On May 22, 2026, the government confirmed that all other employees eligible for hybrid work will be required to work onsite four days per week starting on July 6, 2026.

• At the end of 2024 to 2025, Public Services and Procurement Canada administered 5.8 million square metres of office facilities, reflecting reductions already implemented from previous years (5.9 million square meters in 2023 to 2024 and 6 million square meters in 2022 to 2023)
  • On May 22, 2026, the Government confirmed that all employees eligible for hybrid work will be required to work onsite four days per week starting on July 6, 2026