A recent Fair Work Commission (FWC) decision has highlighted the risks businesses face when workplace policies and procedures are unclear. In this case, a manager was dismissed after refusing to undergo a drug and alcohol test. While the refusal did breach company policy, the Commission found the dismissal was unfair due to gaps in the policy and failures in procedural fairness.

The incident began when the manager and colleagues attended a lengthy lunch. On return, one colleague resigned immediately after being asked to take a breath test. Management then sought to test the remaining employees, citing duty of care obligations. 

However, justifications for the request shifted repeatedly—from random testing, to post-incident, to suspicion-based testing—without clear reference to the company’s policy.

The FWC found that while the business had a detailed testing policy, it failed to specify consequences for refusal. Management also did not provide the worker with a copy of the policy at the time, limiting her ability to understand her obligations. 

Procedural missteps compounded the problem: no investigation was carried out, written allegations were not provided, and the disciplinary process appeared predetermined.

In ruling the dismissal unfair, the Commission noted that employer directions must be both lawful and reasonable. Here, the lack of clear justification, shifting explanations, and absence of clear impairment indicators meant the test request fell short. As a result, the worker was awarded six months’ compensation.

This case is a timely reminder for employers: policies are only effective if they are clear, comprehensive, consistently applied, and supported by fair procedures. Gaps in documentation, inconsistent communication, and inadequate process can expose businesses to significant legal and financial risks.

At Performance Advantage, we help businesses avoid these pitfalls. Our team works with employers to:

• Develop and implement clear, practical workplace policies.
• Ensure policies are applied fairly and consistently.
• Support managers with training and guidance on compliance.
• Assist with managing FWC claims and disputes.
• Provide proactive HR advice to reduce risk and strengthen workplace culture.

By partnering with Performance Advantage, employers can build robust systems that protect their business, support their people, and withstand external scrutiny. Don’t wait for an unfair dismissal claim to highlight gaps in your processes—take proactive steps today.

Contact Performance Advantage to safeguard your workplace with clear policies, fair procedures, and expert HR support. 

Call us at 0408 897 079 or email us at suzanne@performanceadvantage.com.au to get started!

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