Think Your Drug and Alcohol Policy Is Solid? Fair Work Might Disagree

A logistics business recently learned the hard way that having a policy isn’t the same as being able to use it. After an employee returned a positive drug test, the business still found itself exposed, despite having a drug and alcohol policy in place:

“We had a policy. But when we tried to act on it, it turned out it wasn’t clear enough, and we were told we couldn’t enforce it.”

Sound familiar?

It’s a situation that’s becoming more common, especially in industries like logistics, trades, and manufacturing, where safety is a daily priority. And the Fair Work Commission has been loud and clear about one thing: A policy that’s not clear and properly communicated might as well not exist.

What’s Going Wrong?

Two recent decisions from the Fair Work Commission show just how easy it is for drug and alcohol (D&A) policies to fall short, even when employers thought they’d done everything right.

Here’s what the Commission found:

• Policies were unclear. Many employers didn’t explain what “fit for work” meant or whether a positive result for drug metabolites (the stuff that stays in your system after the effects wear off) could lead to dismissal.

  
  

• Communication was poor. In several cases, policy updates were sent by email yet most employees didn’t have work emails or access to a computer.

  
  

• No training or confirmation. Staff were never taken through the changes, and employers had no signed acknowledgment to prove they understood the policy.

The bottom line? (and this goes for all policies, not just drugs and alcohol) - If employees don’t clearly understand the policy and how it applies to them, you may struggle to rely on it when things go wrong.

What Makes a Drug and Alcohol Policy Effective?

Here’s what we recommend to every business we work with whether they have two employees or two hundred:

1. Clarity Comes First

Avoid vague wording like "fit for work" or “under the influence.” Spell it out.

• Define your testing process, thresholds, and expectations.

• Be clear on what triggers disciplinary action.

• Address both active and inactive drug metabolites so there’s no grey area.

  
  

2. Think Beyond the Email

You can’t rely on a policy sitting in someone’s inbox.

• Hold a team meeting (even if it’s short) to walk everyone through the policy.

• Use printed handouts or team toolbox meetings for workers who aren't on computers all day.

• Include the policy in your onboarding process and annual refreshers.

  
  

3. Get it Signed

This is the simplest (and most overlooked) step.

• Have employees sign a confirmation that they’ve read, understood, and agree to the policy.

• Keep this on file as it’s your proof if you ever need to rely on the policy later.

  
  

A Common Misunderstanding: Metabolites Aren’t the Same as Impairment

Even if an employee isn’t visibly impaired at work, they can still return a positive drug test due to lingering metabolites. These are the chemical by-products that remain in the body long after the effects of the drug have worn off. This means someone might feel completely fine but still test positive.

That’s exactly what happened in a recent case involving logistics company DP World. An employee admitted to using drugs a few days before their shift but showed no signs of impairment at work. However, their test result was positive due to residual metabolites.

Because the company’s policy didn’t clearly state that the presence of non-impairing metabolites could still breach the rules, Fair Work ruled the dismissal unfair. The takeaway? If your policy doesn’t spell this out, you may not be able to act on a positive result.

Actionable Steps You Can Take

If you're not sure whether your Drug & Alcohol Policy would stand up under scrutiny, here’s where to start:

• Review your current policy. Is it specific, easy to read, and up to date with testing standards?

• Check how you’ve shared it. Was it emailed, handed out, or explained in a meeting?

• Look for a signed acknowledgment. If you don’t have this, it’s time to collect it.

• Book a refresher session. A quick team meeting to walk everyone through the policy is a good reminder, shows you’re serious and protects you later.

  
  

Just having a policy on paper isn’t enough, it needs to be clear and practical. A well-designed Drug & Alcohol Policy doesn’t just tick a box; it protects your team and your business, and supports your ability to act when needed.

If you’re unsure whether your current policy would hold up under a Fair Work review, or you need support putting one in place that’s both legally sound and easy for your team to understand, we can help.

We work with small and medium sized businesses to review existing policies, draft tailored documents, and guide you through the rollout, step by step. No jargon and legalese, just clear advice and practical tools that work in the real world.

Let’s make sure your policies aren’t just in place, but are actually effective.

Book a free discovery call today. Let’s make managing HR the least of your worries. 

Get in Touch

Need help? Contact us today - sandra@hrconsultingtas.com.au or 0408 408 225  

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The content provided on this website serves as a general information resource on the subjects discussed, and should not be considered tailored to specific individual circumstances or a replacement for legal counsel. While we exert significant effort to ensure the accuracy of our information, HR Consulting TAS cannot ensure that all content on this website is consistently accurate, exhaustive, or current. Recommendations by HR Consulting TAS and any information acquired from this website should not be regarded as legal advice.