The return-to-office (RTO) movement is accelerating across Canada in 2025, with the Canadian federal government and major corporations rolling out RTO orders that are reshaping the work-life balance for thousands of employees.

Even large U.S.-based companies with Canadian offices, such as Amazon, Dell, JPMorgan Chase, Disney and BlackRock are pushing for increased in-office presence, leaving many workers scrambling to adjust to a reality that no longer prioritizes remote work flexibility.

The most recent announcement came from Canada’s top bank, Royal Bank of Canada (RBC). In a recent announcement, RBC will require employees to be in the office four days a week, as confirmed by a recent internal memo obtained by Reuters.

Some employers argue that returning to the office fosters collaboration and innovation, the shift is already creating new headaches for employees, particularly those in urban centres like Toronto and Vancouver.

With Canada’s largest bank now enforcing a near full-week office schedule, thousands more workers are bracing for a gruelling return to long commutes, packed transit lines, and increased daily expenses. Toronto, already one of North America’s most congested cities, could see a significant spike in travel times and transit delays as this new wave of office mandates takes effect.

Meanwhile, backlash is brewing among employees, many of whom had structured their lives around hybrid or remote work models. The added cost, time, and mental toll of commuting are emerging as major points of tension—raising new questions about work-life balance, employee satisfaction, and the long-term sustainability of rigid in-office policies.

RBC announces a return-to-work (RTO) mandate to start September 2025

RBC announced it will require employees to return to the office four days a week starting in September 2025. According to a company memo, the policy applies to most hybrid roles but excludes fully remote positions and those already based in-office full time.

RBC leadership cited the importance of “in-person, human connection” to its “relationship-driven” culture as the rationale behind the mandate. The bank emphasized that physical presence is key to collaboration, innovation, and maintaining a strong company culture. However, the announcement has triggered concern and pushback among employees, particularly around increased commuting time and associated costs.

Real reason for RBC RTO mandate

Critics believe the RBC return-to-office mandate is less about fostering culture and more about tightening control amid financial underperformance.

The RBC RTO announcement came just hours after RBC reported lower-than-expected second-quarter earnings, driven by rising loan loss provisions — a signal the bank is bracing for economic uncertainty.

Some employees suspect the leadership is using the office mandate as a tool to boost productivity and accountability following the disappointing results. According to some forum chats, internal chat groups have been buzzing with speculation that the move is a response to financial pressures rather than a genuine effort to rebuild workplace connection.

RBC is not the first to issue RTO mandates: A few big companies lead the RTO charge

Several global corporations with Canadian offices are implementing strict return-to-office policies.

Return to full-week (or almost full week) at the office

These changes signal a broader shift among employers, many of whom cite the need for stronger collaboration, improved company culture, and increased productivity as key reasons for pulling employees back into offices.

Hybrid return-to-work model

Tough adjustment for employees

For employees in densely populated cities, the return-to-office mandates are likely to bring back pre-pandemic commuting challenges.

Commuting nightmares return

For instance, commuters in the GTA can expect a significant increase in traffic volume, with experts predicting longer commute times as thousands of professionals return to transit and highways during peak hours. The impact is expected to be felt across major transit networks, including GO Transit and the Toronto Transit Commission (TTC), both of which have been gradually adjusting services in expectation of RTO mandates.

For workers who moved to suburban areas during the work-from-home era, the abrupt shift back to daily commuting is especially daunting. Many will now need to reconfigure their routines, adding hours of travel time to their days and increasing expenses related to transportation and office attire.

Loss of work-life balance

Before the pandemic, work-life balance often felt like an elusive goal. Remote and hybrid work arrangements provided a newfound sense of autonomy, allowing employees to integrate personal responsibilities into their schedules, exercise more frequently and spend more time with family. Surveys indicate that a significant percentage of Canadian workers (79%) believe hybrid work positively impacts their well-being, with 70% stating that it has directly improved their mental health.

With full-time office attendance making a comeback, many workers are concerned about losing the flexibility that has become a crucial factor in job satisfaction. In fact, 81% of Canadian employees say flexible work arrangements influence their decision to stay with an employer or seek opportunities elsewhere.

Is there a silver lining? Claiming deductions for hybrid work

Despite the shift back to in-office work, there are still ways for employees in hybrid arrangements to find financial relief. The Canadian Revenue Agency (CRA) allows workers who perform a portion of their duties from home to claim tax deductions related to home office expenses. While employees mandated to work in-office five days a week may not benefit, those on hybrid schedules can still take advantage of these deductions.

Eligible employees may be able to deduct expenses such as:

To qualify, employees must meet specific CRA criteria and obtain a T2200 form from their employer. While the deductions won’t fully offset the loss of remote work perks, they do offer some financial relief in the face of rising commuting costs.

Future of work in Canada

As companies continue to enforce return-to-office policies, the workforce is at a crossroads. While some employees welcome in-office collaboration, others view it as a step backward from the flexibility they have come to value. With the labour market still tight and talent retention a top priority, businesses that maintain hybrid options may find themselves with a competitive edge.

For workers adjusting to this new reality, strategic planning — such as negotiating hybrid arrangements, seeking tax deductions, and reevaluating commuting options — can help mitigate the impact of RTO mandates. While the work-from-home era may be fading for many, its influence on employee expectations will likely shape workplace policies for years to come.

Sources

1. Benefits Canada: 79% of Canadian employees report improved well-being due to flexibility of hybrid work: survey (Jan 22, 2025)

2. HRD: Most Canadian workers think 5 days in-office hurts wellbeing: survey (Jan 14, 2025)

3. Talent Canada: No longer a ‘perk’ – Canadians now expect flexible, hybrid work: Survey (Feb 16, 2023)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.