Drug and alcohol policy: A complete guide for Canadian employers

In Canada, a drug and alcohol policy is vital for employers to ensure workplace safety and legal compliance. It sets clear expectations for employees regarding substance use, addressing new challenges like impairment and remote work. Although not mandated, having a clear policy not only protects your business from legal risks but also fosters a safer, more productive environment for your employees.

What is a drug and alcohol policy?

A drug and alcohol policy is a document that clearly outlines a company’s rules and expectations regarding substance use. This includes, but is not limited to, alcohol, recreational drugs and even prescription and over-the-counter medications. The goal is to prevent impairment that could put employees and the public at risk.

You might also see this called a workplace impairment policy or a substance abuse policy. No matter the name, the core purpose is the same: to ensure employees are “fit for duty” and capable of performing their jobs safely and effectively. 

Key elements to include in your policy 

A robust policy must be clear, detailed and legally sound. When creating your policy, ensure it clearly outlines the following:

How to create a drug and alcohol policy in Canada 

Creating an alcohol and drug policy can seem daunting, but by following a structured approach, you can build one that protects your workplace.

1. Identify applicable laws: Research federal and provincial laws that apply to your industry and geography. 
2. Assess workplace risks: Evaluate your workplace to identify safety-sensitive roles. This will help you determine the appropriate level of detail and testing protocols for your policy.
3. Define prohibited behaviours: Clearly state the rules, such as zero tolerance for impairment on the job.
4. Decide on testing protocols: If testing is necessary for safety reasons, establish clear, consistent, and legally compliant procedures.
5. Develop reporting and accommodation processes: Create a clear path for employees to report concerns and for the company to provide support.
6. Draft, review and refine: Draft the policy and have it reviewed by legal and HR experts to ensure it complies with all relevant Canadian laws.
7. Communicate and train: Roll out the policy to your employees, explain its purpose and provide training to ensure everyone understands their obligations.

Free drug and alcohol policy template (Canada)

Here’s a preview of the letter template you can download and customize based on your requirements:

Canadian legal considerations

Understanding the legal landscape is crucial for creating an effective policy.

Federal framework

All policies must comply with federal laws, including the Occupational Health and Safety Act, the Canada Labour Code and the Canadian Human Rights Act. These laws protect employees and ensure policies are not discriminatory.

Follow Provincial rules

Make sure your policy aligns with your Province’s laws. In Ontario, for example, employers can prohibit the use of substances in the workplace as well as smoking and vaping in enclosed spaces. Certain workplaces with a risk of opioid overdose must have naloxone kits.

Safety-sensitive positions

For roles where an employee’s impairment could lead to serious harm, courts and arbitrators in Canada have allowed for more stringent testing, such as random drug and alcohol testing. However, this is only permissible under very specific circumstances and must be a last resort.

Best practices for policy implementation

• Integrate into onboarding: Introduce the policy to all new hires and have them sign an acknowledgment form.
• Regular reviews: Review and update your policy annually to reflect changes in laws, workplace trends or new technologies.
• Safeguard confidentiality: Ensure all information regarding an employee’s substance use or rehabilitation is kept strictly confidential.

Creating a comprehensive drug and alcohol policy is essential for any Canadian business. It not only protects your employees but also safeguards your company against legal and financial risks.

By customizing a policy template such as the one provided here, you can build a policy that fits your unique workplace, ensuring it is both legally compliant and supportive of your employees’ well-being.

The information in this template is current as at 1 August 2025, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The content is general information only, is provided in good faith to assist employers and their employees, and should not be relied on as professional advice. Some information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising directly or indirectly as a result of reliance on, use of or inability to use any information provided in this template. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this template.