When a vague drug policy becomes a $63,500 mistake

A recent Fair Work Commission case (Tamati v MQT Pty Ltd, 2025) serves as a powerful reminder of how costly an unclear workplace drug and alcohol policy can be.

“A Sydney office worker has been awarded more than $60,000 in compensation after being fired for refusing a breath test after drinking alcohol alongside two colleagues during a four-hour work lunch,” reports News.com.au

In this case, an employee was dismissed after refusing to take a breath test following a lunch break. The employer believed it was acting within its rights under its policy. However, the Fair Work Commission found otherwise ruling the dismissal “harsh, unjust, and unreasonable,” and ordering the company to pay $63,500 in compensation.

The issue wasn’t the testing itself, it was actually the policy. The Commission found that the company’s drug and alcohol policy was vague, poorly structured, and inconsistently applied. It didn’t clearly define what constituted “reasonable suspicion,” failed to outline what would happen if an employee refused testing, and, crucially, hadn’t been properly communicated to staff.

This case highlights a broader risk for many Australian employers: relying on a generic or incomplete policy downloaded from the internet or adapted from another organisation or even written hastily as a “to-do”. A document that looks compliant on paper can still fail under legal scrutiny if it isn’t tailored to your specific workplace context, risk profile, and communication processes. Especially, if you work in one of those high-risk industries such as healthcare, transport, construction or mining.

A well-drafted drug and alcohol policy clearly defines key terms such as “reasonable suspicion” and “fit for work”, outlines the testing process with employee rights and employer obligations, specifies the consequences of non-compliance, aligns with Fair Work and Work Health and Safety (WHS) laws, and is communicated and reinforced through staff training and induction.

At AusHealth, our workplace testing and policy specialists help organisations create clear, compliant, and enforceable drug and alcohol policies that protect both employees and employers.