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Navigating Drug and Alcohol Policies in Manufacturing

A Review of Unfair Dismissal Principles in a recent Fair Work Commission Decision


Enforcing drug and alcohol policies in the manufacturing industry is a crucial task that requires a careful balance between safety and fairness. In environments where machinery operates and safety is paramount, stringent drug testing policies are common. Recent rulings have shown that the enforcement of these policies must consider the nuances of employee conduct outside work hours.


Key Case: Sydney Trains v Goodsell [2024] FWCFB 401 (‘Goodsell’)

A landmark case this year, the Goodsell case, provides valuable insights. In this case, an employee with a spotless 26-year record tested positive for cocaine during a random drug test. He was dismissed for breaching the company’s “drug-free” policy, which mandated that employees must not use drugs at any time.


While the Fair Work Commission (FWC) acknowledged that the company had a valid reason for dismissal, it also deemed the action unfair due to the employee’s long service and otherwise clean history.


Important Takeaway: Positive Drug Test vs. Fair Dismissal

A positive drug test can justify dismissal, but it does not automatically ensure that the dismissal is fair. The decision highlights the need for employers to consider an employee's track record and whether they were impaired at work when making disciplinary decisions.


The Risk Factor: Out-of-Hours Conduct and Workplace Safety

In safety-sensitive roles within manufacturing, drug and alcohol testing policies are essential for managing workplace risks. Employers should enforce drug-free policies and conduct random testing to ensure that employees remain fit for duty, regardless of when they consume substances.


However, for a dismissal to be considered fair, the FWC’s ruling suggests that employers should evaluate:

  • The employee's work history
  • The potential risk posed to colleagues and operations
  • Whether the employee was actually impaired on the day of the test


Defining “Impairment” vs “Presence”

A critical point from the Goodsell case is that the FWC upheld the employer’s right to test for the presence of drugs, not just impairment. This distinction is vital, especially in manufacturing, where measuring impairment on-site can be difficult.


The FWC concluded that policies focusing on drug use, rather than impairment, are lawful and reasonable in high-risk environments. Employers must ensure their policies effectively mitigate safety risks, even if they do not directly assess impairment levels.


Practical Takeaways for Employers in Manufacturing

To ensure a safe and fair workplace, manufacturing employers should keep these points in mind when developing drug and alcohol policies:


  1. Develop clear policies with employee involvement
    Create explicit policies that outline the consequences of drug use and policy breaches. Ensure these policies are included in employment contracts, requiring employees to acknowledge their understanding.

  2. Prioritise safety with transparent testing procedures
    Implement consistent testing, particularly in high-risk roles, in line with company policies. Clearly communicate the reasons for maintaining a drug-free environment to all employees.

  3. Consider the employee’s record and risk of impairment
    While a positive drug test may result in dismissal, an employee’s long and commendable record should influence the decision. Evaluate whether the drug use would realistically impair the employee’s ability to perform their job safely.


The Complex Issue of Medicinal Cannabis

The legal use of medicinal THC introduces additional challenges for employers. Employees prescribed medicinal THC should inform their employer to allow for reasonable adjustments, ensuring that safety is not compromised. Employers should establish clear policies outlining how cases involving lawful medicinal THC use will be managed, ensuring compliance with the applicable work, health, and safety legislation in the relevant jurisdiction, as well as anti-discrimination laws. These policies help balance employee health needs with workplace safety requirements.


Closing Thoughts: A Cautionary Tale for Fair and Balanced Policies

The Goodsell case serves as a reminder for manufacturing employers about the complexities of enforcing drug and alcohol policies. A positive drug test does not guarantee that a dismissal will be deemed fair, especially for long-serving employees with strong records.


Employers should carefully evaluate the context of each situation, the potential safety risks, and whether dismissal is the most justifiable course of action. Striking a balance between maintaining safety and ensuring fairness is essential in fostering a responsible and compliant workplace.


Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. 

Navigating Drug and Alcohol Policies in Manufacturing
People Mosaic, Jaylene Trovato 6 January 2025
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