There are many reasons to ensure your workplace’s drug and alcohol management policies and practices are up to scratch. Safety and the potential for tragic accidents is motive enough for most businesses. However, if you’re driven by the almighty dollar, there are several other reasons you should consider.
For example, in addition to safety, poor drug and alcohol management can also impact areas such as absenteeism, productivity and morale, all of which can affect your bottom line. Plus, there’s another important reason to factor in that can have massive impact to your profit and potentially your freedom: Legal consequences.
The legal consequences of poor drug and alcohol management
While the potential for fines due to safety breaches in workplaces is generally well known – and we’ll look at these shortly – let’s first focus on the potential for imprisonment. Yes, failing to manage drugs and alcohol in the workplace could result in imprisonment.
In many Australian states and territories, as well as federally, industrial manslaughter laws can impose severe penalties on companies and individuals (including owners, managers, and directors) if reckless or negligent conduct results in a fatality. Penalties can be extreme, with individuals facing up to 20 years in prison and businesses risking multi-million dollar fines.
While these laws are in their infancy, there have already been some cases brought to court. For example:
- A stonemasonry business became the first company convicted under industrial manslaughter laws in Victoria early this year after the death of a worker. The company received a $1.3 million fine and the sole director was convicted and placed on a two-year Community Corrections Order. The company and director were also ordered to pay the worker’s family $120,000 in compensation.
- An auto recycling firm was convicted and fined $3 million in Queensland after a worker was killed by a reversing fork lift. The two directors were convicted and sentenced to 10 months imprisonment, with a suspended sentence.
- Also in Queensland, the operator of a business involved in the repair and maintenance of electrical items was convicted and sentenced to five years imprisonment after being found guilty of negligently causing the death of a worker. The sentence will be suspended after 18 months.
Dollars and cents
As we mentioned, the laws are generally in their infancy, which is why convictions of individuals are still low. In addition, cases where convictions are applied can be more complex due to the attribution of liability and the higher burden of proof.
Fines, however, are commonplace, even before the tougher industrial manslaughter laws were introduced. For example, in 2023, there were 293 prosecutions recorded for breaches of Work Health and Safety (WHS) regulations across the nation. These prosecutions resulted in total financial penalties of $39.95 million, or just less than $140,000 per case. Common prosecutions included failing to implement adequate safety measures. Another common failure was negligence in maintaining safe working environments.
Here are some other interesting observations:
- In 2023, Victoria led the count of prosecutions to enforce WHS regulations, with 132 prosecutions and financial penalties of $15.16 million.
- Queensland was next with 70 prosecutions, followed by NSW with 65.
Get your drug and alcohol management on track
What are the key learnings for businesses when it comes to potential legal consequences under WHS and industrial manslaughter laws?
It is important to understand the potential consequences of not adequately managing drugs and alcohol in your workplace. Looking at financial and legal penalties alone, they can be massive.
By getting on track with your drug and alcohol management, by developing a drug and alcohol policy, educating workers, supporting workers with substance abuse issues, and conducting drug and alcohol testing, you can protect your business. And potentially save yourself time in prison.
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Getting your workplace drug and alcohol management on track could save you more than you might think.
