TL;DR: A drug, alcohol, and smoking policy sets the standard for being fit for work, explains how impairment is managed, and states where smoking and vaping are allowed. In Australia it rests on WHS duties. Testing can be lawful when a policy is reasonable and safety-based, while smoke-free rules come from state and territory laws.

Key takeaways

• Safe Work Australia says managing drug and alcohol risks might include setting specific workplace policies.
• Prescribed and over-the-counter medicines can also affect a person’s ability to work safely, so the policy should cover them.
• The Fair Work Commission has described random testing as an intrusion on privacy that only health and safety grounds can justify.
• Smoking is illegal in enclosed public places such as office buildings in every state and territory, but outdoor rules differ.
• Since 1 July 2024, vapes can only be sold in pharmacies, and vaping is generally illegal where smoking is banned.

What is in this drug, alcohol, and smoking policy template?

The template is a general sample policy covering drugs, alcohol, and smoking at work. It treats them as health and safety risks, which matters most where people operate machinery or drive. Use it as a starting point, then tailor the testing approach, smoking areas, and support contacts before you consult workers on the draft.

What is a drug, alcohol, and smoking policy?

A drug, alcohol, and smoking policy is a workplace rule set that defines fitness for work. It says what is not allowed, such as attending work impaired, and explains how the organisation identifies and responds to impairment. It also covers medicines that affect safety, alcohol at work functions, and where people may smoke or vape.

These three topics share a policy because they raise the same questions. Each one affects health, safety, and productivity, and each one needs a clear rule that applies to everyone. Drugs and alcohol mainly raise an impairment risk. Smoking and vaping mainly raise a question of where, which state law partly answers for you.

Consider a site that runs forklifts in a warehouse and also has a head office. The same policy sets one standard for both, for example that nobody works while impaired. However, the warehouse may add testing for forklift operators, while head office relies on reporting and supervision. So a good policy sets a shared standard and scales the controls to the risk.

Do Australian employers need a drug and alcohol policy?

Australian employers must manage health and safety risks so far as is reasonably practicable, and impairment from alcohol or drugs is one of those risks. Safe Work Australia says that managing it might include setting specific policies. So a written policy is not always mandatory, but it is the clearest way to set and enforce a fitness for work standard.

Which jobs carry legal alcohol limits?

Some roles have their own limits on top of general WHS duties. According to Safe Work Australia, there is a legal blood alcohol level in some jobs, including road and rail transport, maritime, and mining. In those industries, the law may also prohibit a worker from being affected by any drugs, whether legal or illegal.

Why do medicines belong in the policy?

Safe Work Australia notes that alcohol and drugs can affect a person’s ability to work safely, and that this includes prescribed and over-the-counter medicines. For example, a worker taking a sedating medication may be fully within their rights and still be unsafe to operate plant. A good policy asks workers to tell their manager when a medicine could affect safety, without asking for their diagnosis.

How does Victoria fit in?

Victoria applies its own Occupational Health and Safety Act 2004 rather than the model WHS laws, although the duty to provide a safe working environment works in a similar way. For instance, WorkSafe Victoria suggests that employers adopt a zero tolerance policy on illegal drugs and alcohol for work-related drivers. It also suggests asking drivers to declare medication so its effects can be assessed.

Can an employer drug test employees in Australia?

Yes, in many cases. Fair Work Commission decisions accept random and targeted testing as a reasonable response to safety risk, even though it intrudes on privacy. Testing is on firmest ground when a written policy authorises it, it is linked to genuine safety risks, and workers were consulted before it began.

What has the Fair Work Commission said?

Two Full Bench decisions set out the main principles. In Endeavour Energy in 2012, the Full Bench quoted an earlier case describing random testing as an intrusion on privacy that only health and safety grounds can justify. It also noted that an employer has a legitimate right, and indeed an obligation, to try to stop employees coming to work impaired.

In Briggs v AWH in 2013, a worker was dismissed after repeatedly refusing a urine test. The Full Bench agreed the direction to take the test was lawful and reasonable. In particular, a policy the worker was contractually bound to follow authorised it, and many workers operated heavy machinery. As a result, it refused permission to appeal, and the dismissal stood.

Which testing method should the policy choose?

The Commission has also explained the trade-off between methods. In Endeavour Energy, the Full Bench said oral fluid testing focuses more on acute impairment, while urine testing is more likely to uncover patterns of use. The 2013 Full Bench added that urine testing can detect use in purely private time. So choose the method that matches the risk you are managing, and say why in the policy.

Do you need to consult before introducing testing?

Consultation is a legal duty under WHS laws, not just good practice. Safe Work Australia states that a business must consult workers on health and safety matters, including when proposing changes that might affect them. Introducing testing is that kind of change. Therefore, consult workers and any health and safety representatives on the draft before the policy starts.

Privacy rules also apply in places. According to the OAIC, the Privacy Act’s employee records exemption does not cover job applicants who are not hired. It is also unlikely to cover a provider that delivers medical services to an employer under contract. So pre-employment testing and any outside testing provider need careful handling.

What should the policy say about smoking and vaping?

The policy should name where smoking and vaping are allowed, if anywhere, and confirm they are banned everywhere else. State and territory governments are mainly responsible for smoke-free laws. Every jurisdiction bans smoking in enclosed public places such as office buildings, but the rules on outdoor areas and exemptions differ by state and territory.

According to the federal Department of Health, Disability and Ageing, it is illegal in all states and territories to smoke in enclosed public places. These include office buildings, shopping malls, airports, and public transport. However, the laws differ between jurisdictions on how exemptions are given and on smoking in outdoor areas. A national employer should therefore check each state’s rules rather than applying one site’s arrangement everywhere.

Vaping needs its own line in the policy. Since 1 July 2024, vapes can only be sold in a pharmacy, to help people quit smoking or manage nicotine dependence. The department also says it is generally illegal to vape where tobacco smoking is banned, although smoke-free laws can differ by state or territory. So treat vaping exactly like smoking unless a local rule says otherwise.

Work vehicles need a line too. It is illegal in every state and territory to smoke in a car when a minor is inside. A simple approach is to ban smoking and vaping in all work vehicles, which also protects colleagues who share them, as covered in a vehicle use policy.

What should a drug, alcohol, and smoking policy include?

The policy should include its scope, a clear fitness for work standard, rules on medicines, and rules for alcohol at work functions. It should also explain any testing and how suspected impairment is handled. Then add where smoking and vaping are allowed, what support is offered, the consequences of a breach, and how test results stay confidential.

A workable outline looks like this:

• Scope: cover employees, contractors, and visitors, during work hours, at functions, and in work vehicles.
• Fitness for work: nobody performs work while impaired by alcohol, illegal drugs, or medicines.
• Medicines: workers tell their manager when a medicine could affect safe work, without disclosing a diagnosis.
• Work functions: set out how alcohol is served, who hosts, and how people get home safely.
• Testing: state who may be tested, when, by which method, and against which standard.
• Suspected impairment: describe how a manager responds, including removing the person from safety-critical work.
• Smoking and vaping: name the permitted areas and the times breaks can be taken.
• Support: list support contacts, and explain how someone can ask for help before a problem escalates.
• Breaches and privacy: explain the disciplinary process, and who can see test results.

Keep the policy consistent with what you actually do. For example, if the policy promises a second confirmatory test, make sure your provider offers one, because a policy that is not followed is hard to rely on.

How should a manager respond to suspected impairment?

A manager who suspects impairment should first make the situation safe. That means stopping the person from doing safety-critical work and making sure they do not drive. Then the manager should talk to them privately, record what they observed, and follow the policy’s steps, which may include a test where the policy allows it.

Suppose a delivery driver arrives slurring their words and smelling of alcohol. The supervisor takes the keys, arranges a lift home, and writes down the time, what they saw, and who else was present. The next day, HR meets the worker and follows the disciplinary steps in the policy, giving the worker a chance to respond.

Two habits make this work. First, train managers on the steps before they need them, because impairment rarely happens at a convenient time. Second, keep observations factual, such as “unsteady on feet”, rather than drawing conclusions. In addition, a broader WHS policy should point managers to this procedure.

When is a sample policy not enough?

Frequently asked questions

Is random drug testing legal in Australian workplaces?

Random drug testing can be lawful in Australia when it is reasonable and linked to genuine health and safety risks. Fair Work Commission decisions accept random and targeted testing, while noting that it intrudes on privacy. Testing is on firmest ground when a written policy authorises it and workers were consulted first.

Can an employee refuse a workplace drug test?

An employee can refuse, but refusal can have consequences. In Briggs v AWH, a Fair Work Commission Full Bench agreed a direction to take a urine test was lawful and reasonable, because a policy the worker was bound to follow authorised it. The worker’s repeated refusal was a valid reason for dismissal.

Can employees vape at work in Australia?

Vaping is generally illegal in places where tobacco smoking is banned, such as enclosed workplaces, although smoke-free laws differ by state and territory. A workplace policy can simply apply the same rules to vaping as to smoking. Since 1 July 2024, vapes can only be sold in pharmacies to help people quit or manage nicotine dependence.

Should a drug and alcohol policy cover prescription medication?

Yes. Safe Work Australia notes that prescribed and over-the-counter medicines can affect a person’s ability to work safely. A good policy asks workers to tell their manager when a medicine could affect safe work, without requiring them to disclose a diagnosis, so the risk can be assessed and managed.

Do smoke-free workplace laws differ between states?

Yes. State and territory governments are mainly responsible for smoke-free laws. Every jurisdiction bans smoking in enclosed public places such as office buildings, but the rules on outdoor areas and on exemptions differ. A national employer should check the smoke-free rules in each state and territory where it has sites.

Related reading

• How important are workplace policies and procedures?
• Employee onboarding checklist template
• Sample bullying, discrimination and harassment policy

Sources

1. Safe Work Australia. “Drugs and alcohol.” Retrieved 8 October 2026. https://www.safeworkaustralia.gov.au/safety-topic/hazards/drugs-and-alcohol
2. Safe Work Australia. “Consultation.” Retrieved 8 October 2026. https://www.safeworkaustralia.gov.au/safety-topic/managing-health-and-safety/consultation
3. Fair Work Australia Full Bench. “Endeavour Energy v CEPU and others [2012] FWAFB 4998.” 14 August 2012. Retrieved 8 October 2026. https://www.fwc.gov.au/documents/decisionssigned/html/2012fwafb4998.htm
4. Fair Work Commission Full Bench. “Briggs v AWH Pty Ltd [2013] FWCFB 3316.” 5 June 2013. Retrieved 8 October 2026. https://www.fwc.gov.au/documents/decisionssigned/html/2013fwcfb3316.htm
5. Office of the Australian Information Commissioner. “Employee records exemption.” Retrieved 8 October 2026. https://www.oaic.gov.au/privacy/privacy-guidance-for-organisations-and-government-agencies/organisations/employee-records-exemption
6. Department of Health, Disability and Ageing. “Smoking and tobacco laws in Australia.” Last updated 14 March 2025. Retrieved 8 October 2026. https://www.health.gov.au/topics/smoking-vaping-and-tobacco/about-smoking/laws-in-australia
7. Department of Health, Disability and Ageing. “About vaping and e-cigarettes.” Last updated 23 June 2025. Retrieved 8 October 2026. https://www.health.gov.au/topics/smoking-vaping-and-tobacco/about-vaping
8. WorkSafe Victoria. “Managing risk factors on the road.” Retrieved 8 October 2026. https://www.worksafe.vic.gov.au/managing-risk-factors-road