When a positive drug or alcohol test result lands on HR’s desk, it triggers a process that sits at the intersection of workplace safety, employment law, organisational culture, and human empathy. The challenge for HR professionals is to navigate this intersection without compromising on any dimension — to be compassionate without being negligent, and to be compliant without being callous.

This article examines how Australian HR teams can manage positive result situations with both rigour and humanity.

The Human Side of Positive Results

It is easy to view a positive test result as a compliance event — a data point that triggers a defined process. But behind every positive result is a person who may be dealing with chronic pain, mental health challenges, relationship breakdown, grief, addiction, or any number of circumstances that have contributed to their substance use.

Acknowledging this reality is not about making excuses or undermining the testing program. It is about recognising that a one-dimensional, purely procedural response can cause unnecessary harm and may not serve the organisation’s interests in the long term. Employees who are treated with dignity during difficult situations are more likely to engage with support services, comply with return-to-work conditions, and remain productive members of the workforce.

This does not mean every positive result should result in a second chance. Some situations — particularly those involving serious safety risk, repeated offences, or a refusal to engage with support — may require termination. The key is that the decision is made on its merits, not by default.

Procedural Fairness Requirements

Regardless of the organisation’s compassionate intentions, procedural fairness is non-negotiable. The Fair Work Act 2009 and related case law establish clear expectations for how employers must handle situations that may lead to disciplinary action.

At a minimum, procedural fairness in the context of a positive test result requires:

• Notification — the employee must be informed of the positive result in a private, respectful setting. They should be given the specific details of the result and the substance detected.
• Opportunity to respond — the employee must have a genuine opportunity to provide an explanation before any decision is made. This includes disclosing prescribed medication, providing context about their circumstances, or raising any concerns about the testing process.
• Right to a support person — the employee should be informed of their right to have a support person present during any formal meeting. This may be a colleague, union representative, or any other person of their choosing.
• Confirmation testing — if the initial result was a screening test, the employee should be informed of the confirmation testing process and that no final decision will be made until confirmed results are available.
• Consideration of relevant factors — the decision-maker must genuinely consider the employee’s response, their employment history, the nature of the substance, the role they perform, and any mitigating circumstances.
• Written notification of the decision — the outcome, including the reasoning, should be communicated in writing.

Failure to follow these steps is one of the most common reasons employers lose unfair dismissal cases before the Fair Work Commission.

Support Versus Discipline: Finding the Right Balance

The policy should guide the decision, but it should not eliminate the need for judgement. Most well-drafted policies provide for a range of responses to a positive result, from counselling and a first and final warning through to immediate termination, depending on the circumstances.

Factors that typically weigh in favour of a supportive response include:

• The employee’s tenure and employment record.
• Whether this is a first offence.
• Whether the employee has voluntarily disclosed a substance issue or sought help.
• Whether the employee is willing to engage with the EAP and comply with return-to-work conditions.
• The nature and level of the substance detected.

Factors that may weigh in favour of a disciplinary response include:

• A safety-critical role where impairment poses an immediate risk to the employee or others.
• Prior warnings or positive test results.
• Refusal to engage with support services.
• Evidence that the employee was impaired at the time of the test (as distinct from a residual positive).
• The test being conducted post-incident where substance impairment may have contributed to the incident.

Case-by-Case Assessment

One of the most important principles in managing positive results is that each case must be assessed on its own merits. Blanket policies — “any positive result equals instant termination” — may feel administratively simple, but they are increasingly difficult to defend before the Fair Work Commission.

A case-by-case approach means:

• Gathering all relevant information before making a decision.
• Consulting with legal counsel where the circumstances are complex or termination is being considered.
• Considering the full context, including the employee’s personal circumstances, the nature of the substance, and the risk profile of their role.
• Applying the policy consistently — similar circumstances should lead to similar outcomes — while allowing for the exercise of reasonable discretion.

This is where HR’s professional judgement is most valuable. The ability to weigh competing considerations and make a defensible decision that serves both the organisation and the individual is a skill that cannot be replaced by a flowchart.

Documenting Decisions

Every decision arising from a positive test result must be thoroughly documented. This documentation serves as the organisation’s primary evidence in the event of a challenge, whether through the Fair Work Commission, a workers’ compensation claim, or a workplace investigation.

Documentation should include:

• The test result (screening and confirmation).
• Records of all meetings, including attendees, date, time, location, and a summary of what was discussed.
• The employee’s response to being notified of the result.
• Any medical or professional advice obtained.
• The decision, including the reasoning and the factors that were considered.
• Any return-to-work agreement, warning letter, or termination letter.
• Follow-up actions and their outcomes.

When documenting decisions, focus on the objective basis for the decision. Avoid subjective language, personal opinions, or speculative statements. The documentation should tell a clear story of a fair process that considered all relevant information.

Learning from Outcomes

Every positive result — and the process that follows — provides an opportunity to improve the testing program. After each case is resolved, HR should conduct a brief review to identify:

• Process improvements — were there any delays, miscommunications, or procedural missteps that should be addressed?
• Policy gaps — did the policy provide adequate guidance for the specific circumstances, or does it need to be updated?
• Training needs — did supervisors and managers handle their roles in the process effectively, or is additional training required?
• Trend analysis — does this positive result form part of a pattern (by substance, department, shift, or location) that warrants further investigation?

Aggregated data from positive result management — de-identified and handled appropriately — can provide valuable insights for the organisation’s broader health and safety strategy.

Walking the Tightrope with Confidence

Balancing compassion and compliance is not about finding a compromise between the two. It is about applying both simultaneously — following the process rigorously while treating the person at the centre of it with respect and dignity. The organisations that do this well are those that invest in clear policies, thorough training, and the systems to manage the process efficiently.

If you need a platform that supports HR teams through every stage of the positive result process — from secure result storage and documentation through to follow-up testing and compliance reporting — start your free trial with FairTest and manage these situations with the confidence they require.