Alcohol in the workplace: the hidden safety risk

Alcohol is one of the most widely used substances in Australia, with 77% of Australians aged 14 and over having consumed alcohol over a year. In 2024, there were more deaths involving alcohol than any other drug in Australia.

Yet its impact on workplace safety and performance is often underestimated. Because alcohol is legal and socially accepted, many workplaces might focus primarily on illicit drug use, forgetting the part that booze can play.

However, alcohol can affect judgement, coordination and reaction time in ways that significantly increase safety risks at work. Understanding these risks and implementing clear policies is essential for protecting workers, businesses and the public.

Alcohol and workplace safety

Alcohol affects the brain and nervous system, altering cognitive function and physical performance. According to the National Institute on Alcohol Abuse and Alcoholism, it disrupts brain communication, impairing balance, memory, speech and judgement which increases the risk of injury and long-term neurological changes. Even small amounts can impair decision-making, coordination and concentration which are all critical skills in almost all work environments.

The Australian Drug Foundation states that alcohol use contributes to 11% of workplace incidents each year.

These risks become even more significant in safety-sensitive industries such as transport, aviation, construction and healthcare. In these environments, even minor lapses in attention or slower reaction times can have serious consequences.

Alcohol and workplace incidents

Alcohol-related impairment increases the likelihood of errors, poor judgement and slower responses to hazards. In complex or high-risk workplaces, these factors can contribute to incidents, near misses and injuries.

In Australia, the Australian Drug Foundation estimates that alcohol and other drugs cost workplaces approximately $6 billion each year in lost productivity, absenteeism and accidents as well as almost 11.5 million sick days in total.

Alcohol can also affect workplace culture and behaviour. Workers who attend work while impaired may increase the risk not only for themselves but also for colleagues who rely on clear communication and safe decision-making.

Impairment beyond intoxication

One of the reasons alcohol risk is underestimated is that impairment is not limited to visible intoxication. Workers may appear fit for duty while still experiencing lingering effects from alcohol consumption later or the next day. So even if a worker may technically be under legal driving limits or have no measurable alcohol remaining from drinking the night or day before, they’re still likely to have reduced cognitive performance that affects their job.

Research shows that hangovers can cause fatigue, reduced concentration and slower reaction times. These effects can persist long after alcohol is no longer detectable in the body. In a recent study, 22% of surveyed people had admitted making mistakes as a result of being hungover.

Legal responsibilities for employers

Under Australian workplace health and safety laws, employers have a duty to eliminate or minimise risks to health and safety so far as is reasonably practicable. This includes identifying and managing the risks associated with alcohol or drug impairment.

This can be done through:

1. developing and refining workplace policies,
2. providing education and
3. implementing drug and alcohol testing programs.

Managing these risks not only helps prevent incidents but also demonstrates that an organisation is meeting its duty of care.

Creating a clear alcohol policy

A clear workplace alcohol policy is one of the most effective ways to manage alcohol-related risks. It provides employees with clear expectations around fitness for work and outlines how alcohol-related issues will be managed.

A well-designed policy typically includes:

• expectations regarding alcohol use before and during work
• defined alcohol limits where applicable
• circumstances where testing may occur
• procedures for managing suspected impairment
• clear and consistent consequences for policy breaches.

Read our guide: Why every workplace needs an alcohol and drug policy.

When alcohol testing is used

Workplace drug and alcohol testing can be used as part of a broader safety management framework. Testing programs help organisations verify that workers are fit for duty and provide clear procedures when impairment concerns arise.

Common testing scenarios include:

• pre-employment testing
• random testing
• post-incident testing
• reasonable cause testing when impairment is suspected.

Breath alcohol testing is commonly used in workplace environments because it provides rapid and accurate results.

Testing programs also act as a deterrent by reinforcing expectations around workplace safety and fitness for duty.

The role of alcohol testing services

Implementing alcohol testing requires specialist knowledge and procedures to ensure testing is conducted accurately and fairly.

Professional alcohol testing services support workplaces by:

• conducting compliant breath alcohol testing
• providing trained collectors and testing equipment
• ensuring procedures align with Australian Standards
• coordinating testing across multiple worksites
• assisting with alcohol and drug policy development or review.

By partnering with experienced providers such as AusHealth, organisations can implement testing programs that support both compliance and workplace safety.

Learn more today.