How to Create a Workplace Drug and Alcohol Policy in Australia
A practical guide for Australian employers on building a workplace drug and alcohol policy that is legally defensible, clearly communicated, and actually enforceable.
Why Every Employer Needs a Drug and Alcohol Policy
A workplace drug and alcohol policy is a foundational document for any employer that conducts testing or manages fitness-for-duty requirements. Without a written policy, testing results are difficult to enforce, disciplinary actions are harder to defend, and employees can legitimately claim they were not informed of the rules.
Under the Work Health and Safety Act 2011, a person conducting a business or undertaking (PCBU) has a primary duty of care to ensure, so far as is reasonably practicable, the health and safety of workers. Impairment from drugs or alcohol is a foreseeable risk in many workplaces. A written policy is one of the key controls an employer uses to manage that risk.
The policy also provides the legal foundation for workplace drug and alcohol testing. Without a policy that employees have been informed of and agreed to, testing can be challenged on procedural grounds regardless of the result.
Legal Framework for Drug and Alcohol Policies in Australia
Several pieces of legislation and case law inform how a drug and alcohol policy should be structured in Australia. Understanding these helps ensure the policy is defensible if ever challenged.
Work Health and Safety Act 2011
The WHS Act establishes the employer's duty to manage risks to health and safety. Drug and alcohol impairment is a recognised hazard. The policy is a control measure the employer implements to manage this hazard. Section 19 requires the PCBU to provide and maintain a safe working environment, which includes managing impairment risk.
Fair Work Act 2009
The Fair Work Act governs the employment relationship, including unfair dismissal and adverse action. Any disciplinary outcome resulting from a positive drug or alcohol test must be supported by a policy that is lawful, reasonable, and has been properly communicated. The Fair Work Commission has consistently held that employers must be able to demonstrate the employee knew the policy existed and understood the consequences of breaching it.
AS/NZS 4308:2008 and AS 4760:2019
Australian Standard AS/NZS 4308:2008 covers urine specimen collection and testing procedures. AS 4760:2019 covers oral fluid (saliva) collection and testing. A defensible policy should reference compliance with these standards for the testing methodology used. Testing conducted outside these standards may not withstand legal challenge.
Privacy Act 1988
Drug and alcohol test results are health information and are classified as sensitive information under the Privacy Act. The policy must address how test results are collected, stored, accessed, and disclosed. Employers must handle this information in accordance with the Australian Privacy Principles (APPs).
Key Components of an Effective Policy
A workplace drug and alcohol policy should be comprehensive enough to cover all foreseeable situations but clear enough that any employee can understand it. The following components are essential.
Purpose and scope
State clearly why the policy exists - to maintain a safe workplace and meet WHS obligations. Define who the policy applies to: all employees, contractors, labour hire workers, visitors, and anyone else who enters the workplace. The scope should be broad enough that no one can claim they were not covered by it.
Prohibited conduct
Define what is not allowed. This typically includes attending work under the influence of drugs or alcohol, consuming drugs or alcohol during work hours, possessing prohibited substances on work premises, and refusing to undergo testing when requested. Be specific about whether the policy is zero tolerance or allows prescribed medications with notification.
Testing procedures
Outline when testing will occur: pre-employment, random, for-cause (reasonable suspicion), post-incident, and return-to-duty. Specify the testing method (urine, saliva, or both) and confirm that testing will be conducted in accordance with AS/NZS 4308:2008 or AS 4760:2019 as applicable. Include the chain of custody process and what happens with non-negative results.
Consequences of a positive result or refusal
Spell out what happens if someone returns a confirmed positive result or refuses to be tested. This may range from counselling and an employee assistance program referral for a first offence to termination for repeat offences or safety-critical roles. The consequences must be proportionate, consistent, and applied equally across the workforce. Refusal to test should be treated as a positive result.
Prescription and over-the-counter medications
Address how the policy handles employees taking prescribed medications that may cause impairment or return a positive test result. Employees should be required to notify their supervisor or HR if they are taking medication that could affect their fitness for duty. This allows the employer to assess the risk and make adjustments without penalising someone for legitimate medical use.
Confidentiality and record keeping
Test results are sensitive health information. The policy must state who has access to results (typically limited to HR and the direct supervisor), how results are stored, and how long they are retained. Results should be stored separately from general personnel files and handled in accordance with the Privacy Act 1988.
Support and assistance
Include information about support available to employees who may have a drug or alcohol problem. This typically includes the employer's Employee Assistance Program (EAP), external counselling services, and any return-to-work pathway following treatment. A policy that only punishes without offering support is less likely to be viewed favourably by the Fair Work Commission.
Communicating the Policy to Your Workforce
Having a written policy is necessary but not sufficient. The policy must be effectively communicated to every person it covers. Fair Work Commission decisions have consistently found that employers cannot rely on a policy the employee was not made aware of.
At Hire
Include the policy in the induction pack for all new employees. Have the employee sign an acknowledgement that they have received, read, and understood the policy. Retain the signed acknowledgement on file.
Ongoing Communication
Make the policy accessible through the company intranet, notice boards, or a shared drive. Provide refresher training annually. When the policy is updated, re-issue it and obtain fresh acknowledgements from all employees.
Contractors and Labour Hire
Contractors and labour hire workers must also be informed of the policy. Include it in the site induction process and ensure the labour hire agency communicates the policy to their workers before placement. The host employer's policy should apply on-site.
Translations and Accessibility
If your workforce includes employees whose first language is not English, consider providing the policy in other languages or using a visual summary. The key test is whether the employee genuinely understood the policy, not just whether they signed a document.
Testing Procedures: Getting It Right
The testing component of the policy must be detailed enough that the process is predictable and repeatable. Inconsistent testing procedures are one of the most common reasons drug and alcohol test results are successfully challenged.
Specify the type of testing: pre-employment screening should be conducted as part of the standard drug and alcohol testing process. Random testing should use a genuinely random selection method - not targeting specific individuals. For-cause testing should be triggered by documented observable behaviours, not suspicion alone.
All testing should follow chain of custody procedures. This means the sample is collected, sealed, labelled, and tracked from the point of collection through to the laboratory result. Any break in the chain of custody can invalidate the result.
Important: A non-negative screening result is not a confirmed positive. The policy should state that non-negative screening results will be sent for confirmatory laboratory testing (as required by AS/NZS 4308:2008 or AS 4760:2019) before any disciplinary action is taken. Acting on a screening result alone, without confirmation, exposes the employer to legal risk.
Review and Update Schedule
A drug and alcohol policy should be reviewed at least annually and updated when legislation changes, when new substances emerge as a workplace concern, or when Fair Work Commission decisions establish new precedents. The review should involve consultation with workers or their representatives, as required under the WHS Act.
Document each review, including any changes made and the reasons for them. This creates an audit trail that demonstrates the policy is actively managed and not a static document that was written once and forgotten.
If you need support developing or reviewing your workplace drug and alcohol policy, or setting up a testing program, contact us to discuss your requirements.
Frequently Asked Questions
Is a workplace drug and alcohol policy legally required in Australia?
There is no single law that mandates every employer must have a written drug and alcohol policy. However, the Work Health and Safety Act 2011 requires employers to manage foreseeable risks, and impairment is a recognised hazard. A written policy is the standard control measure for managing this risk and is effectively required if you conduct any form of workplace testing.
Can an employer enforce drug testing without a written policy?
Technically, an employer can request a drug test, but enforcing the result without a written policy is extremely difficult. The Fair Work Commission has repeatedly found that employers must demonstrate the employee was aware of the policy and the consequences of breaching it. Without a written, communicated policy, disciplinary outcomes based on test results are vulnerable to challenge.
How often should a workplace drug and alcohol policy be reviewed?
At a minimum, annually. The policy should also be reviewed whenever there is a change to relevant legislation, a significant Fair Work Commission decision that affects testing or disciplinary procedures, or a change to the testing methods or standards the employer uses. Documenting each review creates an audit trail of active management.
Key Takeaways
- Meets WHS Act duty of care
- Legally defensible testing framework
- Clear consequences for breaches
- Addresses prescription medications
- Supports Fair Work compliance
- Includes employee support pathways
- Annual review schedule built in
Need Help With Your D&A Policy?
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Content reviewed by Jovi Villanueva, AHPRA Registered Physiotherapist, SIRA Approved Provider, Principal Physiotherapist at Wellworx Workplace Solutions.
Last updated: June 2026
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