Alliance Group's medicinal cannabis drug test dismissal backfires in ERA ruling
Alliance Group unjustifiably dismissed a butcher over a drug test despite his disclosed medicinal cannabis use, ERA member David Beck ruled on 20 August 2026.
The butcher had worked at Alliance's Mataura meat processing plant since 1987, rising to become an A grade slaughterer responsible for training junior staff. He was summarily dismissed on 30 January 2026 after returning a second non-negative saliva drug test for THC, the psychoactive compound in cannabis.
The Authority heard the butcher had disclosed a prescription for medicinal cannabis oil in 2023, after a serious workplace injury in 2016 left him with chronic pain. He later switched to a cannabis flower product, administering it the evening before shifts on medical advice that it would not register in testing after roughly six to eight hours.
Following a first non-negative test in mid-2025, the butcher signed a rehabilitation contract and accepted a final written warning without contest. He was targeted for a further test after his HR manager admitted his testing schedule had lapsed despite the final warning. That test also returned a non-negative result, though a test two days before his dismissal meeting came back clear.
At the 30 January disciplinary meeting, the plant operations manager and HR manager heard the butcher's explanation of his medication history and his offer to stop taking medicinal cannabis entirely and undergo frequent testing. He proceeded to dismissal, telling him, “It's not a decision I've made lightly,” before citing the need for consistency with past cases involving second failed tests.
Beck found Alliance's investigation was rushed and failed to properly explore the butcher's circumstances, including whether he had been correctly timing his medication or whether alternatives to dismissal existed. He said managers relied on a rigid application of a drug and alcohol policy designed primarily for illicit drug use, rather than disclosed prescription medication.
The Authority concluded the company had not established that the butcher's conduct met the threshold for serious misconduct, given his disclosed prescription and the absence of any evidence of impairment at work. “Alliance did not turn their mind to this basic threshold question,” Beck said.
The Authority ordered Alliance to permanently reinstate the butcher to his former position and seniority, subject to an occupational health assessment addressing his pain management and any supportive measures needed for a safe return to his safety-sensitive role. He was also awarded lost wages for the period of his dismissal and $25,000 in compensation for hurt and humiliation, with no reduction for contributory conduct. Costs were reserved, with the parties encouraged to resolve the matter between themselves.
