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Alcohol and Drug Testing in the Workplace

Health & Safety

11 June 2025 (Last updated 3 Sept 2025)

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Using alcohol or other drugs can lead to intoxication and impairment at work. If you are considering testing employees for alcohol or other drugs, you need to have a workplace policy and include any requirements for testing in writing.

Alcohol and drug testing policy

An alcohol and drug policy must outline what is and what is not acceptable in the workplace. If employees have to entertain clients or partners, then they might be allowed to have alcohol during that time.

The policy should also mention the potential consequences if employees breach the policy.

It should cover:

  • who it applies to
  • the use of alcohol and drugs outside work when it can impact employee behaviour or performance at work
  • responsibilities of employer and employees
  • approaches to prevention and education, support or rehabilitation
  • when and why alcohol and drug testing is required
  • what type of testing may occur (random or targeted)
  • where and how testing may occur
  • what happens if an employee returns a positive test result.

Things to consider

This is a complex area of employment law and it is essential that employers who want to test employees get advice before doing so. Speak with Peninsula before commencing drug testing to ensure all employment agreements and policies are in order. It’s important that any testing is performed appropriately, legally and is compliant with the Privacy Act 2020 and the Human Rights Act 1993.

You should also consider if this testing is needed. Testing could potentially compromise employee privacy.

However, on the other hand, employers have a responsibility under the Health and Safety at Work Act 2015 (the Act) to provide a safe work environment for all employees, contractors and visitors. People under the influence of drugs and alcohol are a recognised hazard to health and safety.

What if I think my employee is not fit to work?

Where an employer has a reasonable suspicion that an employee is adversely affected by drugs or alcohol at work (including at work events), it may be reasonable for the employer to request for the employee to either produce a medical certificate confirming they are fit for work or specifying any restrictions in being able to perform their duties.

The employer may also request for the employee to undertake a drug or alcohol test in accordance with their policies. The employee has the right to refuse to undergo a drug and alcohol test.

Employers may also request a pre-employment drug and alcohol test. This is common when an employee is starting or moving to a safety-sensitive role.

What is the law regarding drug testing in the workplace?

There is no particular law that deals with drug and alcohol testing in the workplace. Health and safety rules are balanced with privacy rules.

Whether an employee can be tested for drugs and alcohol in the workplace will depend on several factors. Below are things you may take into consideration.

  • Whether that employee poses a potential health and safety risk to themselves or others. Considerations could include the industry they work in and the type of work the employee does and the impact of this work on other people
  • The effect on the employee’s rights, such as invasion of privacy.
  • The details contained within the policies and procedures that an employer has regarding drugs and alcohol and whether these would be considered as fair and reasonable.

What if the employee refuses to comply with a request to be tested?

A policy acknowledged and signed by an employee which sets out the procedure for drug and alcohol testing will provide the employer the broadest range to manage health and safety risks. The policy should set out the consequences for failing to undertake the test – being - it prevents the employer from being able to ensure a safe workplace and may result in disciplinary action.

Can I suspend an employee if I suspect they are under the influence

Whilst the employer investigates any concerns relating to an employee being adversely affected by drugs or alcohol, they may consider suspending the employee. Such suspension should be on full pay and in accordance with the employee’s employment agreement.

What can I do to support employees with a drug and/or alcohol dependency?

Employers may be obliged to recognise alcohol and other drug dependencies as treatable conditions. Where possible, employers should encourage any employee who may be subject to such dependency to seek assistance from appropriate organisations or support groups.

The employer may look to introduce an Employee Assistance Program (EAP) which is a confidential and professional life management service which provides employees with a qualified counsellor who can offer personal support for any practical or emotional challenges they may be facing. The service is initially provided via telephone and online advice, but face to face meetings could be arranged depending on the provider.

Are there privacy implications in having a drug and alcohol test?

Urine testing as a legitimate method for detecting drugs and alcohol is a contentious issue which has resulted in a number of inconsistent findings in recent times. The consideration should always be a balance of ensuring a safe workplace versus the need to protect employees from unnecessary intrusion by employers in their personal lives as this could be ruled as unjust and unreasonable should a claim ever arise

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Managing staff can be tricky if you are unaware of the complex regulations and processes in place. Peninsula has worked with thousands of businesses in New Zealand, supporting them in implementing effective policies and procedures. Contact us to learn more about policies and procedures for your business.

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