'Rigid' drug and alcohol policy costs employer $25k

Employer also ordered to reinstate a veteran butcher fired for failing workplace drug test

'Rigid' drug and alcohol policy costs employer $25k

The Employment Relations Authority (ERA) has called out the "rigid" application of an employer's drug and alcohol policy that led to the dismissal of a veteran butcher who had openly disclosed his prescription for medicinal cannabis.

ERA member David Beck found Alliance Group's policy was too narrowly focused and left no meaningful room for employees' individual circumstances.

"I find too much emphasis was placed... on a somewhat simplistic and rigid application of the company drug and alcohol policy that was primarily aimed at resolving problems with those abusing illicit drugs or alcohol," Beck said in the ruling.

The 'rigid' policy

The case involved the dismissal of Paul Brown, a butcher with nearly four decades of service, after failing a second workplace drug test while using prescribed medicinal cannabis.

Brown had been prescribed medicinal cannabis oil in 2022 to manage chronic pain from a serious 2016 workplace injury that left him hospitalised for an extended period.

The butcher disclosed the prescription to Alliance's occupational health nurse the following year, providing a medical certificate confirming he was "being treated with medicinal thc/cbd drops for his chronic medical conditions."

Alliance placed the certificate on Brown's file and took no further action, including no health monitoring, no review of its own policy settings, no guidance to Brown on managing the tension between his prescription and workplace drug testing requirements.

But when Brown failed a random test in July 2025, Alliance suspended him, issued a final written warning, and required him to complete a six-week drug counselling course.

Beck noted the course was designed for recreational drug users, a fact Alliance's own witnesses conceded during the investigation meeting, yet no alternatives were explored and the programme was not modified to reflect Brown's circumstances.

A second positive saliva test in August 2026 triggered the dismissal process.

Where the process broke down

Beck criticised Alliance for rushing the dismissal process for Brown.

"Objectively reviewing the evidence both documentary and orally presented, no careful investigation (other than hearing from Mr Brown and his Union organiser at a brief meeting) took place," Beck said.

"In the circumstances, I consider the investigation meeting was convened too quickly and it quickly morphed into a disciplinary meeting without time for genuine reflection or inquiry into, the legitimate issues and mitigating factors Mr Brown identified."

Beck noted that the plant's HR manager, despite being an experienced practitioner, was "ill-prepared" for the investigation meeting and failed to apprise herself of Brown's personal file and employment history.

"I would not go as far as to say in obtaining the delegation to dismiss that the decision was predetermined, but it did lead to a decision to dismiss without further reflection," he added.

Beck then found Alliance had not established that Brown's conduct met the threshold of serious misconduct and ordered his permanent reinstatement with no loss of seniority.

Brown was awarded $25,000 compensation for hurt and humiliation, plus lost wages covering 30 January to 29 July 2026. No reduction was made for contributory conduct.

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