'We've made a mistake': Dutton scraps office-return plan for public servants

Coalition leader also clarifies plans to slash 41,000 jobs in public service sector

'We've made a mistake': Dutton scraps office-return plan for public servants

Coalition leader Peter Dutton is abandoning his plan of ending work from home for public servants as he called the policy a "mistake."

"I think we've made a mistake in relation to this policy," Dutton told the Today Show. "I think it's important that we say that and recognise it."

Dutton had previously advocated for making public servants return to the office full time, similar to how US President Donald Trump ordered Federal employees back onsite after getting elected.

"Our intention always was to make sure that where taxpayers are working hard and their money is being spent to pay wages, that it's being spent efficiently and that, of course, will always be the case," Dutton said.

"We're listening to what people have to say. We've made a mistake in relation to the policy, we apologise for that and we've dealt with it."

Backlash on office-return order

The Coalition leader had been receiving criticism over his office-return plan for public servants, saying that it would disadvantage women in the workplace.

The Australian Council of Trade Unions (ACTU) also said that a blanket office-return policy would be an "instant productivity killer."

According to ACTU, Dutton's previous plan of ending working from home would likely impact one in three workers across the country, with a potential flow-on effect to private sector workers.

Office-return policies have been observed to have a "domino effect" on organisations, with data from Robert Half showing that organisations are influenced by others when it comes to their onsite-return policies.

But Dutton stressed that getting private sector workers is not part of his plan.

"We never had any intention for work from home changes that we were proposing in Canberra to apply across the private sector," the Coalition leader said.

'Non-negotiable' flexibility

Damien Andreasen, vice president of HiBob APJ, said the Coalition's reversal on office return is a reflection of Australians' strong preference for working from home.

"It's clear that Australians' preference for flexibility in the workplace has become non-negotiable," Andreasen said in a statement to HRD. "The backlash to mandatory office returns shows just how much employees now value the flexibility they've gained."

Andreasen added that the Coalition's decision also shows the workforce's deep commitment to maintaining the autonomy they've gained over the past years.

"Whether it's concerning the public service or the wider Australian workforce, it's becoming increasingly clear the future of work lies in flexibility, and policies that ignore that are simply out of touch."

Slashing 41,000 workers

Meanwhile, Dutton also issued a clarification over the Coalition's plan to slash 41,000 jobs in the public service sector.

He said that this plan involved reduction over five years through a hiring freeze and natural attrition.

"That was always the plan that there would be natural attrition and a hiring freeze and that would be achieved over a four- or five-year period," he said.

According to Dutton, military and army reserves will not be affected by the freeze, while frontline and national security positions will be preserved.

Work-from-home clash

Throughout his answers, Dutton has accused the Prime Minister Anthony Albanese and the Labor party of "contorting" their policies into something else.

"What we've said is that we've listened to Australians and we've made it very clear that work from home is a reality for many people, for our friends, for people in our workplace, and we're supportive of that," he said. "So, Labor tried to twist it into something else and I think we just clarify our position today."

But Albanese said in response that "nobody believes Peter Dutton has changed his mind on work from home."

"He will rip up flexible work and slash the services you rely on the minute he gets the chance," the prime minister said as quoted by The Guardian.

Albanese has advocated for working from home for Australia's public servants, citing its benefits on travel time and increased workforce participation among women.

"It makes an enormous difference. It makes a difference to them in terms of their hip pocket," Albanese previously said.