New South Wales has moved to force public servants back to the office, leading the Victorian government to attempt to poach workers who may prefer to continue working from home.

The Secretary of the NSW Premier’s Department sent a directive to departments on Monday outlining that the “starting position” for all public service employees is to “work principally in an approved workplace”.

The memo marked a significant reversal of the widespread adoption of hybrid and remote work amongst the NSW public service.

“Arrangements to work from home on some occasions must take into consideration the wider needs of departments, agencies, the community and stakeholders,” the directive said.

It said that working from an office brings a “sense of belonging” to organisations.

“The more our experience of work is shared, the more united we become,” it said.

“That means being physically present in our organisations.”

NSW Premier Chris Minns backed the new directive and said it was binding for all public servants in the state.

“It’s a mandatory circular,” Minns said.

“This is from the Premier’s department. This will apply across the public service in NSW, so I’m confident that we will change it and we’ll get people back in.

He said that working remotely leads to a “drop in mentorship” and “less of a sense of joint mission”.

“This is about building up a culture in the public service,” Minns said.

Pushback from workers

There has already been pushback about the direction to return to the office, with the Public Service Association, which represents public servants in NSW, saying it has “always fought for flexible working arrangements”.

“Any PSA member with issues in flexible working arrangements, including working from home, will receive support from their union,” it said.

Unions NSW secretary Mark Morey said that workers were “stunned” with the shift and the NSW government will likely face “all manner of industrial and legal challenges”.

“Working parents, and working mums in particular, have made significant life decisions on the basis of being able to work flexibly,” Morey told the Sydney Morning Herald.

“This includes everything from childcare and transport through to the suburb or region they have chosen to live in.

“Many now feel the rug has been pulled from under them with no notice.

“Compelling workers to absorb the increased childcare and transport costs of attending the Sydney CBD during a cost-of-living crisis will not be popular.”

Despite the clear directive from the Premier and his department, a number of NSW departments and agencies have advised their staff that it is “business as usual” when it comes to working arrangements.

The NSW Health Department emailed its staff on Tuesday telling them to “please continue as usual”.

“The updated advice does not mandate any particular pattern of attendance, but it is a starting position that work is principally done in an approved workplace in NSW,” the email said.

“Please note the availability of flexible work arrangements are not changed by this circular.”

Those working for the Department of Transport were also told this week that those currently on a hybrid working model can continue while the new conditions are examined.

State rivalries

In Victoria, Premier Jacinta Allan has backed remote work, with public servants in the state able to work two days per week from home under a “flexible work policy” introduced in March 2021.

Allan also used the move as an opportunity to attempt to poach public servants from across the border.

“We have no plans to roll back the existing flexible working arrangements,” Allan said on Tuesday.

“We know that flexibility in the workplace helps more women stay in work and more women in the workforce is better for everyone.

“Any public servant from NSW who likes flexibility in their workplace should consider moving to Victoria.”

There has been an explosion in remote and hybrid working since the onset of the Covid pandemic, with many workplaces not returning to office mandates following the lifting of all restrictions.

A number of studies have found there are major benefits for employees and workplaces in adopting these models of work, with a survey of 500 CEOs recently finding that hybrid working was helping with employee engagement, company culture, efficiency and collaboration.

The NSW government may also risk an exodus of staff at all levels because of the office mandate.

Oe recent study found that companies that do go ahead with return-to-office mandates will risk losing senior executives to rivals that are continuing with flexible working conditions.

A study in the US found that the major tech firms that did require workers to return to the office lost a significant number of senior managers to rivals.

NSW government departments and agencies may have to follow in the footsteps of local startups and tech firms and take some novel approaches in attracting workers back to the office.

Some local tech firms have introduced perks such as kombucha on tap, free lunches, and weekly tennis lessons in order to bring people back to the physical office.