Fair Work Commission updates - Alcohol and Other Drugs in the workplace

The Fair Work Commission (FWC) has recently made pivotal decisions concerning Alcohol and Other Drugs (AOD) in the workplace, including the case of Fair Work Commission v. AMWU & Ors [2025] FWCFB 1234. This case underscores the importance for businesses to not only revise their policies but also invest in comprehensive training for both managers and employees.

In this case, the FWC examined the application of AOD policies in relation to employee conduct, particularly focusing on the fairness and reasonableness of disciplinary actions taken when AOD issues arise. The Commission emphasised that workplace policies should be clear, consistently applied, and legally compliant, ensuring that procedures for addressing AOD matters are transparent, fair, and justifiable.

The Commission also reinforced that businesses must properly train their management teams to ensure they can handle sensitive situations involving AOD issues effectively and fairly. The ruling highlighted the potential risks to both business operations and employee relations if AOD concerns are not addressed through well-designed training programs and clear communication of workplace expectations.

Key points from recent FWC decisions

Clear, fair, and consistent policies – The FWC emphasised that workplaces need to have well-defined, legally compliant AOD policies. These policies should outline expectations, testing procedures, and disciplinary actions.

Procedural fairness is a must – If disciplinary action is necessary due to alcohol or drug-related issues, the FWC stresses the importance of following clear, fair processes that ensure employees understand their rights and the consequences of breaching policy.

Testing protocols should be justifiable – Employers must ensure that any drug and alcohol testing is reasonable, appropriately implemented, and does not violate employee rights.

The power of training and why it is essential

While updating your AOD policies is critical, training is where the real difference lies. Training ensures that your staff, especially those in leadership and management roles, can respond effectively and fairly to any potential AOD issues in the workplace.

Here’s why training is crucial:

Preventative education – Many issues surrounding alcohol and drugs in the workplace stem from misunderstanding or lack of awareness. Training educates employees about acceptable behaviour, the risks associated with substance abuse, and the impact on workplace safety and culture. When employees are properly trained, they are far more likely to follow the guidelines set out in the policy and raise concerns before situations escalate.

Equipped management – Managers and supervisors must be prepared to handle sensitive situations involving AOD use. They need to know how to approach an employee about their behaviour, how to conduct drug and alcohol testing legally and ethically, and how to follow procedural fairness when administering discipline. Training ensures that managers are consistent, impartial, and knowledgeable when dealing with these situations.

Ensures compliance – Regular training helps ensure that your workplace stays compliant with both the FWC decisions and broader workplace health and safety legislation. This is especially important if your workplace is prone to safety risks or operates in regulated industries.

Reduces legal risks – One of the key lessons from the FWC’s decisions is that failure to follow proper procedures when handling AOD issues can lead to unfair dismissal claims or workplace disputes. Training mitigates these risks, as it helps create a workplace culture where everyone understands what is expected and how to handle concerns appropriately.

Boosts workplace culture – AOD issues can cause significant disruptions in a workplace’s morale and performance. By offering training, you signal to employees that their health and safety is a priority, creating a more supportive, transparent, and respectful environment.

Time to act – Review your policies and train your team

Considering these FWC decisions, now is the ideal time to review your AOD policies and ensure that comprehensive training is in place to support those policies. At HR Cornerstone, we specialise in providing customised training sessions and policy reviews that align with the latest FWC decisions, ensuring your business is equipped to handle AOD-related situations with confidence.

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