How to audit your drug and alcohol policy

A workplace drug and alcohol policy is one of the most important workplace health and safety documents an organisation can have. It helps establish expectations, supports fitness-for-work requirements and provides a framework for managing alcohol and other drug-related risks in the workplace.
However, many organisations create a policy and then leave it untouched for years. As legislation evolves, workplace risks change and issues such as medicinal cannabis become increasingly common, a policy that was once fit for purpose can quickly become outdated and therefore useless.
In fact, a recent Fair Work case highlighted the consequences of a poorly drafted workplace drug and alcohol policy, resulting in a compensation payout of more than $63,000 after a dismissal was found to be unfair.
The lesson to learn from that is that if you haven’t reviewed your drug and alcohol policy recently, now may be the perfect time.
Here are 10 questions every employer should ask when conducting a policy audit.
Reviewing your drug and alcohol policy does matter
Your drug and alcohol policy is more than a compliance document. It provides the foundation for how your organisation manages workplace impairment, testing programs and fitness-for-work expectations.
A current and effective policy can help:
- support workplace health and safety obligations
- reduce the risk of incidents and injuries
- provide consistency when managing breaches
- protect workers, contractors and visitors
- support workplace testing programs and
- reduce legal and compliance risks.
Regular reviews help ensure your policy reflects current legislation, industry best practice and your workplace’s unique risks, especially if you’re in a safety-critical field.
Signs your drug and alcohol policy needs updating
Before devoting a chunk of time and team resources to a formal audit, consider whether any of the following apply to your organisation.
Your policy hasn’t been reviewed in years
If your policy is more than two years old, it may not reflect current workplace practices, testing methods or legal requirements.
Your workplace has changed
New worksites, additional employees, expanded operations or new activities, equipment or processes can all create risks that should be reflected in your policy.
You’ve introduced workplace testing
A drug and alcohol policy should clearly outline when testing may occur, how it will be conducted and how results will be managed.
Questions about medicinal cannabis are increasing
Many older policies were written before medicinal cannabis became more widely prescribed. Employers should ensure their policies address this and other prescription medications and fitness-for-work requirements appropriately.
Managers are unsure how to apply the policy
If supervisors are quite often asking for clarification about procedures, responsibilities or disciplinary action, it may indicate the policy lacks sufficient detail. All this can be added clearly into the policy, with step-by-step processes so that you save time in the long run.
You’ve experienced an incident or near miss
Incidents often expose gaps in workplace procedures and can highlight areas where a policy requires strengthening, rewriting or even just tweaking a little.
Drug and alcohol policy audit checklist
Check off each item achieved when reviewing your policy.
Does the policy:
- Clearly define fitness for work?
- Explain who it applies to?
- Describe how testing procedures work clearly?
- Define reasonable suspicion?
- Explain what happens if someone refuses a test?
- Look at prescription medications?
- Address privacy and confidentiality requirements?
- Outline consequences?
- Reflect current legislation and Australian Standards?
- Contain language and terminology that is easy to understand and apply?
Policies should be reviewed regularly to ensure they remain aligned with workplace health and safety obligations, relevant industry requirements and current testing practices.
Common policy mistakes that create risk
Many organisations rely on generic templates or outdated documents that fail to address their workplace’s actual risks. Sure, you can use AI or Google to set up any old policy, but is it really taking into account the nuances of your organisation, how your team works and the nature of your industry? Perhaps you have some special factors, equipment or rostering system that has to be addressed in writing.
These gaps can create confusion, increase legal risk and make policies difficult to enforce. It’s just safer to have a clearer drug and alcohol policy that is created by experts.
How often should a drug and alcohol policy be reviewed?
As a general guide, employers should review their drug and alcohol policy:
- every one to two years
- following a workplace incident
- after significant organisational changes
- when introducing or changing workplace testing
- when legislation or industry requirements change.
Regular reviews help ensure your policy remains relevant, practical and legally defensible.
The most important thing you can do
Probably, the most important thing you can do when it comes to reviewing your policy is don’t wait until a problem arises!
A drug and alcohol policy should be a living document that evolves alongside your workplace.
Conducting a policy audit can help identify gaps before they become safety incidents, employee disputes or costly legal challenges. By reviewing your policy regularly and ensuring it reflects current workplace risks and best practice, employers can create safer workplaces and greater confidence for both workers and management.