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ARTICLE · 01 MARCH 2010

Case Round-Up

A look at employment developments on drug and alcohol testing, employment terminations and transfer of business exemption orders under the new Fair Work Act.

AustraliaEmployment and HR
John Tuck
John Tuck

EMPLOYMENT – DEVELOPMENTS ON DRUG & ALCOHOL TESTING

Caltex Australia Limited v Australian Institute of Marine and Power Engineers; AWU [2009] FWA 424

Following on from the important decision of the Australian Industrial Relations Commission in Shell Refining v CFMEU [2008] AIRC 510, Fair Work Australia (FWA) has approved the introduction of random drug and alcohol testing, but with crucial limitations. This is FWA's first decision on the principles governing the use of random testing in the employment context, and it will be significant for employers, employees and unions that work in hazardous workplaces.

Caltex Australia (Caltex) and the unions agreed to have FWA determine whether a policy permitting random testing for drugs and alcohol (D&A Policy) should be introduced, as part of its arbitration under section 240(4) of the Fair Work Act 2009 (Cth) (FW Act) of a new enterprise agreement. The union objected to the proposed D&A Policy, stating that the testing

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