Why every workplace needs an alcohol and drug policy

Having a clear and compliant workplace drug policy is essential. It’s not only about ticking a compliance box, it’s about protecting people, productivity and reputation. A strong policy helps businesses meet legal obligations, prevent accidents, and create a culture of safety and support.

Why a workplace drug policy is essential

A well-written workplace drug policy defines expectations around drug and alcohol use and sets out what happens if those expectations aren’t met. It ensures fairness, transparency, and consistency across the organisation.

Under Australia’s work health and safety (WHS) laws, employers have a duty to provide a safe work environment. This extends to managing risks related to drug and alcohol impairment. Without a reliable policy, employers may be exposed to legal or financial consequences if an incident occurs. Ignorance of risks in the workplace is not a legal defence should any serious incident occur. Owners and officers of a business or organisation may be criminally liable for serious incidents identified as negligent.

Drug and alcohol impairment can seriously affect concentration, coordination, and judgement. In safety-critical industries such as construction, healthcare, transport, mining, or manufacturing, that risk can be fatal. But the impacts go beyond physical safety, substance misuse can lead to absenteeism, poor morale, and reduced productivity across the team.

A clear, well-communicated drug and alcohol policy supports both prevention and wellbeing and can even open pathways for education and support in the workplace.

If you don’t test, it would appear evident that there is deliberate and wilful action to remain ignorant of risks, increasing liability.

How to create a workplace drug policy

Creating a workplace drug policy isn’t a one-size-fits-all task. Every organisation has different risks, environments, and cultures. A well-designed policy should:

Be tailored to the organisation’s industry, workforce, and operational risks.
Clearly define impairment, testing processes, and consequences.
Include fair procedures for random testing, post-incident, or reasonable-suspicion testing.
Outline privacy and confidentiality measures for employees.
Provide education, training, and access to support programs.
Be reviewed regularly to ensure compliance with changing legislation.

Consultation with staff and health and safety representatives is also critical. This is a way to build trust so that your policy is realistic, fair and supported by as many people in your organisation as possible.

Why use an expert like AusHealth?

Developing a workplace drug policy with an expert like AusHealth gives businesses like yours confidence that every element of compliance and best practice is covered. AusHealth brings together our toxicology specialists, WHS experts, and practical onsite experience across industries.

Partnering with us means:

The policy is compliant with current WHS legislation.
The framework is tailored to your workforce and industry.
Testing and education programs can be fully integrated.
Expert toxicologists can interpret results and advise on next steps.
Your policy is regularly reviewed and updated as laws or risks evolve.

A professionally drafted policy also helps avoid ambiguity, which is something that has proven costly for organisations that attempt to write their own.

Real-life example: when a poor policy cost an employer $63,500

AusHealth’s approach goes far beyond template policies. Our programs are developed and reviewed by professional toxicologists with deep expertise in drug and alcohol testing and regulatory compliance. Using a custom-crafted policy audit matrix, AusHealth can precisely assess how well your current policy aligns with Australian Standards and best practice guidelines.

Created by AusHealth toxicologists, this sophisticated evaluation tool measures each component of your policy to ensure every required element and sub-element are satisfied.

Each element is reviewed across the matrix to determine whether it’s fully, partially, or not satisfied.
The scoring identifies compliance gaps and highlights opportunities for improvement.
The tool automatically adjusts to your organisation’s specific testing methods, whether your policy includes oral fluid, breath alcohol, or urine testing.
The final results provide a clear, quantitative picture of how your policy performs against Australian Standards and industry best practice.

AusHealth offers a complete suite of services to support your workplace drug policy:

Development: Professional toxicologists synthesise a policy and procedure that meet both legislative requirements and current best practice standards.
Review: Quantitative evaluation tools check whether your existing policy is aligned with best practice, identifying gaps and suggesting improvements.
Audit: AusHealth’s unique auditing process draws on aggregated client data and performance results to measure the effectiveness of drug and alcohol programs over time.

Customised implementation and training

One of the valuable things about getting AusHealth to do audit or create your policy is we also offer training. Educating teams helps workers make safer, more informed choices while empowering supervisors to respond confidently to potential issues.

Training options include:

HLTPAT005: Collect specimens for drugs of abuse testing
Workplace observation and reasonable cause training for supervisors
Drug and alcohol awareness programs
Online, self-paced, live webinar, and face-to-face training formats

By partnering with AusHealth, you’re not just meeting your compliance obligations, you’re embedding a culture of safety, accountability, and wellbeing within your organisation.

To learn more or to start developing your workplace drug policy, visit AusHealth’s Workplace Policy Service

Alcohol and drug policy FAQ

What if I suspect some of my staff are using drugs?
Before introducing testing, businesses can roll out an education and wellness program that explains the upcoming policy and its purpose. This gives workers a chance to make healthier choices or seek support before testing begins. A well-implemented drug testing program is primarily about deterrence and safety, not punishment. In the long term, creating a positive workplace culture through prevention and support saves more than the short-term disruption of addressing the issue.

What happens if we don’t have a drug and alcohol policy?
Without a policy, there’s no formal structure for managing risks or supporting staff. However, ignorance is not a defence under Australian work health and safety laws. If an incident occurs and drug or alcohol impairment is found to be a contributing factor, business owners and officers can be held personally liable.

What if we have a workplace drug policy but don’t carry out any testing?
Having a policy without testing suggests a lack of follow-through. This can expose the organisation to greater liability because it shows that management was aware of the risks but chose not to act. Testing provides both evidence of compliance and a deterrent effect.

What if we have a workplace drug policy but don’t stand workers down after a non-negative result?
When an onsite test returns a non-negative result, the sample must be confirmed by a laboratory test. While waiting for confirmation (usually within two business days) it’s best practice to stand the worker down temporarily to maintain a safe work environment. Continuing to let them work increases legal and safety risks if an incident occurs.

What if we don’t take action after a confirmed positive result?
Failing to address confirmed positive results can lead to inconsistent standards and potential discrimination claims. To maintain fairness, the same policy and testing procedures should apply across all levels of the organisation. Taking measured, consistent action also reinforces the company’s commitment to safety and wellbeing.

Do we need to consult employees before introducing a workplace drug policy?
Yes. Consulting with employees and their representatives builds trust, reduces resistance, and improves compliance. When workers are part of the process, they’re more likely to understand the reasons behind the policy and support its goals.

Should managers and supervisors receive training in the policy and procedures?
Absolutely. When senior staff understand the policy and how to apply it consistently, implementation runs smoothly and fairly. Trained managers handle sensitive situations with confidence, and workers are more likely to trust and comply when they see that procedures are applied equally to everyone.

Can we test underage apprentices?
Yes, but informed consent is essential. For workers under 18, parental consent can be provided as a condition of employment, and the apprentice must also provide consent at the time of testing. Refusing to consent would be treated as a breach of the workplace drug policy.

What counts as a breach of a workplace drug policy?
A breach is any action that goes against the terms outlined in your policy. This may include confirmed positive results for drugs or alcohol above the specified cut-off levels, refusing or avoiding a test, tampering with a sample, or not following testing instructions. A clearly written policy from the outset ensures everyone understands these expectations.

Unsure? Just give a us a call on 1800 633 838 because we’re happy to help.