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In this episode of the HR2Go podcast, Karen Arnold from Effective Workplace Solutions interviews Associate Professor David Allen from Drug & Alcohol Solutions Australia about alcohol, drugs and impairment in Australian workplaces.
As WHS obligations tighten and psychosocial risk receives greater regulatory scrutiny, employers are grappling with complex questions:
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Is drug and alcohol testing enough?
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How should we manage medicinal cannabis?
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What does a “positive” test actually mean?
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And how do we balance safety with fairness?
This conversation moves beyond punitive approaches and explores how leaders can manage risk while genuinely supporting their people.
Understanding Drug and Alcohol Risk in the Workplace
Karen Arnold:
David, before we dive into policy and practical steps, can you explain what we’re actually referring to when we talk about drugs and alcohol in the workplace?
David Allen:
From a risk perspective, we’re talking about substances that can impair someone and create risk to themselves or others. That includes alcohol, illicit drugs, certain prescription medications, and medicinal cannabis where THC is present.
The issue isn’t morality. It’s impairment.
Anything that affects cognition, reaction time, coordination or judgement can increase workplace risk — particularly in safety-critical environments such as transport, mining, manufacturing or where heavy machinery is involved.
How Common Are Drug and Alcohol Issues in Australian Workplaces?
The prevalence of substance use varies widely depending on:
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Industry
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Geography
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Socioeconomic factors
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Workplace culture
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Whether a mature testing program is in place
In organisations with a robust drug and alcohol policy and strong safety culture, random testing may return positive results at rates below 1%.
However, in workplaces without structured programs, the rate may be significantly higher.
In “for cause” or suspicion-based testing — where a manager identifies behavioural indicators — the positivity rate can exceed 50%.
As David explains:
“By the time people are getting positive tests, you’ve got a problem.”
The testing itself is straightforward. The complexity lies in what sits underneath the result.
Substance Use Is Often a Symptom of Distress
One of the most important themes of this episode is the connection between substance use and distress.
David notes that many employees who test positive are not simply “risk takers” or reckless individuals. In many cases, they are self-medicating due to:
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Stress
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Financial pressure
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Mental health challenges
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Workplace psychosocial factors
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Personal or family distress
Substance use is often a coping mechanism.
The implication for leaders is significant: if you treat every positive test as purely misconduct, you may miss the underlying risk drivers.
Drug Testing Is a Blunt Instrument
Drug and alcohol testing does have a place — particularly in high-risk industries.
However, David describes testing as a “blunt instrument.” It can deter behaviour and identify impairment risk, but it does not solve underlying problems.
Testing:
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Identifies risk
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Creates a deterrent effect
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Supports WHS compliance
But it does not:
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Address underlying mental health concerns
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Fix workplace culture
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Eliminate psychosocial hazards
Employers who rely solely on testing without broader risk management may find themselves exposed.
The Rise of Medicinal Cannabis in Australian Workplaces
One of the fastest-growing areas of complexity is medicinal cannabis.
Prescriptions for medicinal cannabis have increased dramatically in recent years. Many are issued via telehealth services rather than through a worker’s regular GP.
There are two key components of cannabis:
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CBD – non-impairing
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THC – impairing
Workplace testing detects THC.
The challenge arises when an employee presents a prescription for medicinal cannabis but works in a safety-critical role.
A prescription does not remove WHS obligations.
If THC is present, the impairment risk remains.
This creates tension between:
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Workplace safety duties
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Anti-discrimination considerations
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Fitness for duty assessments
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Medical privacy rights
David raises concern that many prescriptions are issued without proper assessment of the worker’s role or risk profile.
This leaves employers managing complex and often poorly understood situations.
Impairment vs Trace Detection: Why It Matters
Another critical issue is the difference between impairment and trace detection.
Some substances may impair an employee for a short period but remain detectable in the body for longer.
For example:
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Cocaine impairment may last minutes
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Metabolites may be detectable days later
This distinction became prominent in the Sydney Trains case, which reinforced the importance of:
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Clear policy wording
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Proper communication of testing protocols
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Ensuring employees understand consequences
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Avoiding rigid, one-size-fits-all disciplinary responses
Policy clarity is essential.
Overly complex drug and alcohol policies can create confusion, inconsistency and legal exposure.
What Should Employers Do After a Positive Drug Test?
When an employee returns a positive result, the first step is simple:
Follow your policy.
From there, practical steps may include:
- Ensuring immediate safety
- Standing the employee down if required
- Arranging safe transport home
- Providing access to medical care
- Referring to EAP or support services
- Seeking HR and legal advice
- Assessing fitness for duty
Each situation must be assessed on its own facts.
Employers should consider:
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The role performed
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The risk profile of the work
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The nature of the substance
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Whether the issue is linked to a broader medical condition
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Whether psychosocial risk factors are present
Consistency is critical. Deviating from policy without proper review can create further risk.
The Leadership Mindset Shift
Drug and alcohol risk management is not purely a compliance exercise.
It requires leadership maturity.
David encourages leaders to:
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Engage early when behaviour changes
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Train managers to recognise warning signs
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Reinforce policy regularly
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Foster open conversations
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Avoid overly punitive responses
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Reflect on workplace stressors
Importantly, he notes that organisations should examine whether workplace pressures are contributing to employee distress.
Substance use may be a downstream indicator of broader psychosocial risk.
Managing the “whole person” reduces both safety risk and organisational exposure.
Three Practical Risk Reduction Strategies
David’s practical recommendations for employers:
1. Have a Robust, Well-Considered Policy
Your drug and alcohol policy should be:
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Clear
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Simple
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Legally reviewed
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Aligned to your risk profile
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Communicated effectively
2. Apply It Consistently
Inconsistent enforcement creates both legal and cultural risk.
3. Invest in Ongoing Training
Employees and managers should:
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Understand obligations
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Recognise impairment indicators
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Know what to do if concerns arise
Training should be reinforced regularly, not left to sit on a shelf.
Managing Increasing Regulatory and Psychosocial Risk
Workplace regulation is becoming more complex.
Employers are expected to:
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Manage physical safety
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Address psychosocial hazards
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Support mental health
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Ensure fairness
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Maintain compliance
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Reduce litigation risk
Drug and alcohol management intersects with all of these.
A simplistic or punitive approach may expose employers to:
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Unfair dismissal claims
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Discrimination risk
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WHS prosecution
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Reputational damage
A structured, policy-driven and human-centred approach is more sustainable.
Final Reflections
Drug and alcohol testing is not inherently punitive. It is a risk control measure.
But testing alone is not enough.
By the time someone tests positive, there is usually something deeper occurring — whether distress, impairment, risk-taking behaviour or workplace pressure.
Effective leaders balance:
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Safety
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Fairness
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Consistency
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Compassion
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Governance
This episode of HR2Go highlights the importance of approaching drug and alcohol management not just as a compliance obligation, but as part of a broader workplace risk and wellbeing strategy.
Listen to the Full Episode
For HR leaders, executives and business owners navigating increasing regulatory complexity and workplace risk, this conversation offers practical insight and balanced guidance.
If your Australian business needs support reviewing drug and alcohol policy, managing a positive test, or strengthening workplace governance frameworks, contact the team at Effective Workplace Solutions.
Visit: https://test.goldcoastbranding.com.au
Disclaimer:
This content is general in nature and provides a summary only of the subject matter without the assumption of a duty of care by Effective Workplace Solutions. No person should rely on the contents as a substitute for legal or other professional advice.