Last updated: April 2026

Workplace safety isn’t just a boring box to tick off in your employee handbook. It’s the invisible safety net that stops a normal workday turning into something far more serious.

Whether you’re behind a desk or on a job site, one thing holds true: a safe workplace is a productive one. It’s the difference between a debrief over coffee and a call to emergency services.

Because of that, many employers adopt a zero tolerance alcohol policy. And on the surface, that makes sense.

But here’s where it gets tricky.

Recent decisions from the Fair Work Commission show that having a zero tolerance policy doesn’t automatically mean dismissal is the right outcome every time.

When looking at unfair dismissal, the Commission asks one key question:

Was the dismissal harsh, unjust or unreasonable?

And as you’ll see below, it’s not always black and white.

Was it harsh?

Let’s start with Trevor Purves v Queensland Rail. 

Trevor worked in a safety-critical environment and was subject to a strict zero blood alcohol requirement under legislation. After a normal evening, he returned to work and was randomly tested. His result came back at 0.025. He was terminated.

On paper, it looks straightforward. Policy breached. Employment ended. But Trevor challenged the decision.

The Fair Work Commission agreed there was a valid reason for dismissal… but still found it harsh.

Why?

Because they looked at the bigger picture:

• Trevor was 63, with limited literacy and tech skills
• He had over 40 years of service with a clean record
• Finding new work in the same industry would be extremely difficult
• The impact on him and his family was significant
• He had never previously returned a positive test

The outcome? Despite the zero tolerance policy, the dismissal was found to be unfair and he was reinstated.

Lawful and reasonable direction matters

Now let’s take a look at Matthew Wyss v Omnigrip Direct. 

In this case, the business had a clear zero tolerance alcohol policy, particularly around driving company vehicles.

A team lunch was approved to celebrate a project. The CEO made it crystal clear:
no alcohol was to be consumed. Matthew, a manager, decided he had finished for the day and had a drink anyway. Others followed his lead.

Later, work came up. Matthew and the team drove company vehicles after drinking.

He was dismissed for serious misconduct.

This time, the Fair Work Commission upheld the dismissal.

Why?

• The lunch was still on company time
• Employees knew they would be driving afterwards
• A clear, lawful and reasonable direction had been given
• As a senior employee, Matthew’s behaviour set the wrong example

In short, this wasn’t just a policy breach. It was a failure to follow a direct instruction.

Lessons to So what can employers take from this?

A zero tolerance policy can still be the basis of a fair dismissal but it’s not a guaranteed outcome. The Fair Work Commission will consider mitigating factors to ascertain whether or not the dismissal was harsh, unjust or unreasonable. 

Before you move to dismiss someone for breaching a strict alcohol and drug policy, take a step back and work through these factors:

1. Is safety critical to the role?

Is the role of the employee and/or the overall work environment have a strong focus on safety?

2. Are your policies clearly communicated?

Policies need to be more than a document gathering dust. Regular training and sign-offs matter.

3. Are your policies easy to understand?

If people can’t interpret them, they’re harder to enforce.

4. What’s the employee’s history?

Length of service and past conduct can influence whether dismissal feels proportionate.

5. Have you been consistent?

Different outcomes for similar breaches can raise questions.

6. Did you follow procedural fairness?

This is where many employers come undone. Even with a valid reason, skipping process can cost you.

Like anything in life, there are shades of grey even when it comes to a zero tolerance policy so it’s important to have your policies in place to establish clear ground rules in the first instance. If you need to review or introduce clear drug and alcohol policies, or run drug and alcohol testing in your workplace, contact the HR Staff n’ Stuff team to discuss. 

FAQs: Zero tolerance alcohol policies

Can you dismiss an employee for breaching a zero tolerance alcohol policy?
Yes, but it depends on the circumstances. The Fair Work Commission will assess whether the dismissal was harsh, unjust or unreasonable.

Does a zero tolerance policy guarantee dismissal will be upheld?
No. Even with a valid policy, mitigating factors like length of service and personal impact can make a dismissal unfair.

What is a lawful and reasonable direction?
It’s an instruction an employee must follow, provided it relates to their role and doesn’t breach laws or contracts. Ignoring one can justify dismissal.

What is procedural fairness in dismissal?
It means giving the employee a chance to respond, investigating properly, and making an unbiased decision before terminating employment.

Where can I check legal guidance on alcohol policies at work?
The Fair Work Ombudsman provides guidance on workplace rights and obligations.