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1. Random Drug Testing in the Workplace and
It’s impact to Employees
An Analytical Research Paper
Respectfully Submitted to
The Faculty of
The Graduate School
University of Cebu
Respectfully Submitted by:
Ms. Joy Ann Millor
Candidate for the Degree
Master in Business Administration
In Partial Fulfillment of the
Requirements in the Course
Philosophy of Business (BM 215)
October 2018

2. ACKNOWLEDGEMENT
I am grateful to the Almighty, who has blessed me with the success of
this study.
I would first like to thank my advisor Mr. Roel Monsanto of University of
Cebu. He consistently allowed this paper to be my own work, but
steered me in the right direction.
In the accomplishment of this study, many people have best owned upon
me their heart pledged support, this time I am utilizing to thank all the
people who have been a great help.
I would like to thank my manager who's been a great help and for
supporting me all the way and for allowing me to do some research in
the office. To my colleagues, my friends and my family who has helped
me with their words of wisdom and for always motivating me.
Thanks a lot.
- Joy Ann Millor -

3. CHAPTER 1
RATIONALE
A drug is a substance that affects the way the body functions. If a drug
is classified as ‘illegal’, this means that it is forbidden by law. Different
illegal drugs have different effects on people and these effects are
influenced by many factors. This makes them unpredictable and
dangerous, especially for young people. People might use drugs as
medicine if they are sick and the drugs help make them better. People
might also use drugs recreationally (to have fun). These usually are
illegal drugs. Some people use drugs to make themselves more
productive or to help themselves stay awake.
One of the most abused drugs in the Philippines is a local type of
methamphetamine mixed with caffeine known as Shabu. This stimulant
is believed to be the drug of choice for 90% of the Philippines illegal
substance users. This is a powerfully addictive drug that can cause
people to have intense hallucinations and become extremely paranoid.
Some users of this drug have even jumped off high rise buildings
because they believed they could fly. Shabu didn’t arrive in the
Philippines until the mid-eighties, but it soon became hugely popular
among drug users. Methamphetamine causes feelings of euphoria and
the user feels full of energy.
People often think that people with substance abuse or addiction
issues are people who live in poorness and who cannot keep a steady
job. But the reality is that the majority of people struggling with
addictions hold down full time jobs, just like you and me. We tend to
think that identifying people with drug or alcohol problems is easy, but
many successfully hide their afflictions from family members and
employers. However, if you suspect that one of your employees may
have an issue, there are some considerations you can look for. The
misuse of drugs, including alcohol and other substances, can be a
serious problem for the abuser, co-workers and the organization itself.

4. Alcohol, drugs and other substances have a strongly negative effect on
the brain and the body, impairing judgement and concentration and
putting the abuser and co-workers at risk.
REPORTED CASES BY TYPE OF ADMISSION AND SEX
PROFILE OF DRUG ABUSERS
(Facility Based)
CY 2016
• AGE: Mean age of 31 years
• SEX: Ratio of male and female 13:1
• CIVIL STATUS: Single 48.96%
• STATUS OF EMPLOYMENT: Unemployed 44.69%
• EDUCATIONAL ATTAINMENT: College Level 27.14%
• ECONOMIC STATUS: Average Monthly Family Income
Php13, 937.65
• PLACE OF RESIDENCE: Urban (Specifically NCR 42.41%)
• DURATION OF DRUG USE: More than 6 years
• NATURE OF DRUG TAKING: Mono drug use**
• DRUGS/SUBSTANCES OF ABUSE: Methamphetamine,
Hydrochloride (Shabu), Cannabis (Marijuana), MDMA (Ecstasy)
*Residential and Out-Patient Facilities
**Mono drug users - abuse of one (1) drug only
Table 1. 2016 Statistics- Dangerous Drugs Board
Source: Republic of the Philippines Office of the President
Dangerous Drugs Board
Employees know that drug use in the workplace can create problems
and that drug use affects job performance, workplace safety, and many
other work-related activities. The subject of drug testing in the
workplace is a controversial one for businesses. Many arguments exist
supporting both sides of the debate. Some business owners feel they

5. have every right to randomly test employees for illicit drug use, while
others think it unnecessary if they hire the right staff in the first place. In
this study, we will discuss all the implications and significance of
substance abuse and addiction which happens in any workplace, costs
of drug testing and what to do after an employee tests positive for a
drug test.
Further, this study would fall to the significance of employers to do
random drug testing in the workplace and its impact to its employees.

6. REVIEW OF RELATED STUDIES
In accordance with Article V of Republic Act No. 9165, otherwise
known as the Comprehensive Dangerous Drugs Act of 2002, and its
Implementing Rules and Regulations and in consultation with the
Tripartite Task Force created under DOLE Department Order No. 37-
03, s 2002 (Tripartite Task Force), the following guidelines are hereby
issued to assist employers and employees in the formulation of
company policies and programs to achieve a drug-free workplace.
A. COVERAGE
1. These guidelines shall apply to all establishments in the private
sector, including their contractors and concessionaires.
B. FORMULATION OF DRUG-FREE WORKPLACE POLICIES AND
PROGRAMS
1. It shall be mandatory for all private establishments employing ten
(10) or more workers to formulate and implement drug abuse
prevention and control programs in the workplace, including the
formulation and adoption of company policies against dangerous drug
use. Establishments with less than ten (10) workers are also
encouraged to formulate and adopt drug-free policies and programs in
the workplace.
2. The workplace policies and programs shall be prepared jointly by
management and labor representatives and shall be made an integral
part of the company’s occupational safety and health and related
workplace programs.
3. In organized establishments, the workplace policies and programs
shall be included as part of the Collective Bargaining Agreements.

7. 4. Assistance in the formulation and implementation of a Drug-Free
Workplace Policies and Programs may be sought from the Tripartite
Task Force (see Annex 1), through the Occupational Safety and Health
Center. The Regional Offices of the DOLE shall serve as focal center in
their respective areas of jurisdiction in providing information on RA No.
9165 and on the prevention and control of drug abuse in the workplace.
C. COMPONENTS OF A DRUG-FREE WORKPLACE POLICIES AND
PROGRAMS
1. Workplace policies and programs on drug abuse prevention and
control to be adopted by companies shall include, among others, the
following components:
a) Advocacy, Education and Training
i. Employers shall be responsible for increasing awareness and
education of their officers and employees on the adverse effects of
dangerous drugs as well as the monitoring of employees susceptible to
drug abuse. Topics which may be included in the orientation-education
program shall include, among others, the following:
Salient Features of RA 9165 (the Act) and its Implementing Rules and
Regulations (IRR)
The Company policies and programs on drug-free workplace
Adverse effects of abuse and/or misuse of dangerous drugs on the
person, workplace, family and the community
Preventive measures against drug abuse
Steps to take when intervention is needed, as well as the services
available for treatment and rehabilitation.
ii. Employers are enjoined to display a billboard or streamer in
conspicuous places in the workplace with standard message like

8. “THISIS A DRUG-FREE WORKPLACE; LET’S KEEP IT THIS WAY!”
or such other messages of similar import.
iii. Curricula developed by the Task Force shall be used as widely as
possible for awareness raising and training. May be accessed through
the OSHC website (www.oshc.dole.gov.ph)
iv. Training on prevention, clinical assessment, and counseling of
workers and other related activities shall be given to occupational
safety and health personnel, the human resources manager and the
employers and workers representatives. These trained personnel shall
form part of an Assessment Team which shall address all aspects of
drug abuse prevention, treatment and rehabilitation.
v. In the absence of such capability, particularly in small
establishments, DOLE shall, to the extent possible, provide relevant
information on experts and services in their localities.
vi. In the context of their Corporate Social Responsibility Programs,
employers are encouraged to extend drug abuse prevention advocacy
and training to their workers’ families and their respective communities.
b.) Drug Testing Program for Officers and Employees
i. Employers shall require their officials and employees to undergo a
random drug test (as defined in Annex 2) in accordance with the
company’s work rules and regulations for purposes of reducing the risk
in the workplace. Strict confidentiality shall be observed with regard to
screening and the screening results.
ii. Drug testing for teaching and non-teaching staff in private schools
shall be in accordance with the guidelines provided by DepED, CHED
and TESDA.

9. iii. Drug testing shall conform to the procedures as prescribed by the
Department of Health (DOH) (www.doh.gov.ph). Only drug testing
centers accredited by the DOH shall be utilized.
iv. Drug testing shall consist of both the screening test and the
confirmatory test; the latter to be carried out should the screening test
turn positive. The employee concerned must be informed of the test
results whether positive or negative.
v. Where the confirmatory test turns positive, the company’s
Assessment Team shall evaluate the results and determine the level of
care and administrative interventions that can be extended to the
concerned employee.
vi. A drug test is valid for one year; however, additional drug testing
may be required for just cause as in any of the following cases:
After workplace-related accidents, including near miss;
Following treatment and rehabilitation to establish fitness for returning
to work/resumption of job in the light of clinical findings and/or upon
recommendation of the assessment team.
vii. All cost of drug testing shall be borne by the employer.
c) Treatment, Rehabilitation and Referral
i. The drug prevention and control program shall include treatment,
rehabilitation and referral procedure to be provided by the company
staff or by an external provider. It shall also include a provision for
employee assistance and counseling programs for emotionally-
stressed employees.

10. ii. The Assessment Team shall determine whether or not an officer or
employee found positive for drugs would need referral for treatment
and/or rehabilitation in a DOH accredited center.
iii. This option is given only to officers and employees who are
diagnosed with drug dependence for the first time, or who turn to the
Assessment Team for assistance, or who would benefit from the
treatment and rehabilitation.
iv. Following rehabilitation, the Assessment Team, in consultation with
the head of the rehabilitation center, shall evaluate the status of the
drug dependent employee and recommend to the employer the
resumption of the employee’s job if he/she poses no serious danger to
his/her co-employees and/or the workplace.
v. Repeated drug use even after ample opportunity for treatment and
rehabilitation shall be dealt with the corresponding penalties under the
Act and its IRR.
vi. An updated list of drug treatment and rehabilitation centers
accredited by the DOH shall be disseminated through the OSHC
website (www.oshc.dole.gov.ph)
D) Monitoring and Evaluation
i. The implementation of the drug-free workplace policies and
programs shall be monitored and evaluated periodically by the
employer to ensure that the goal of a drug-free workplace is met. The
Health and Safety Committee or other similar Committee may be
tasked for this purpose.

11. D. ROLES, RIGHTS AND RESPONSIBILITIES OF EMPLOYERS AND
EMPLOYEES
1. The employer shall ensure that the workplace policies and
programs on the prevention and control of dangerous drugs, including
drug testing, shall be disseminated to all officers and employees. The
employer shall obtain a written acknowledgement from the employees
that the policy has been read and understood by them.
2. The employer shall maintain the confidentiality of all information
relating to drug tests or to the identification of drug users in the
workplace; exceptions may be made only where required by law, in
case of overriding public health and safety concerns; or where such
exceptions have been authorized in writing by the person concerned.
3. Labor unions, federations, workers organizations and associations
are enjoined to take an active role in educating and training their
members on drug abuse prevention and control. They shall, in
cooperation with their respective private sector partners, develop and
implement joint continuing programs and information campaigns,
including the conduct of capability-building programs, peer counseling
and values education with the end in view promoting a positive
lifestyles and a drug-free workplace.
4. All officers and employees shall enjoy the right to due process,
absence of which will render the referral procedure ineffective.
E. ENFORCEMENT
1. The Labor Inspectorate of the DOLE Regional Offices shall be
responsible for monitoring compliance of establishments with the
provisions of Article V of the Act and its IRR and this Department
Order.

12. 2. The dissemination of information on pertinent provisions of RA 9165
and the IRR shall be included in the advisory visits of the Labor
Inspectorate.
3. The DOLE may, where deemed necessary and appropriate,
delegate the monitoring of compliance of establishments with the
provisions of Article V of the Act to Local Government Units thru a
Memorandum of Agreement.
F. CONSEQUENCES OF POLICY VIOLATIONS
1. Any officer or employee who uses, possesses, distributes, sells or
attempts to sell, tolerates, or transfers dangerous drugs or otherwise
commits other unlawful acts as defined under Article II of RA 9165 and
its Implementing Rules and Regulations shall be subject to the
pertinent provisions of the said Act.
2. Any officer or employee found positive for use of dangerous drugs
shall be dealt with administratively in accordance with the provisions of
Article 282 of Book VI of the Labor Code and under RA 9165.
G. EFFECTIVITY
1. All concerned shall comply with all the provisions of this
Department Order within six months from its publication in a
newspaper of general circulation.
How to Identify an at Risk Employee
Keep in mind that addiction is a condition that requires treatment, and
we should be mindful of how we approach an employee we think is
dealing with a substance abuse problem. You want to do all you can to
confirm your suspicions and be aware of the following warning signs.
 Has the quality of the employees work diminished, are they late in
completing assignments, or do they appear distant or withdrawn

13.  Do they seem anxious, and do they struggle with concentrating on their
work
 Are they gone for long periods of time, or do they take long lunches or
break
 Does the employee react harshly or with aggression when given
feedback?
 Is there a noticeable change in their appearance or hygiene?
Overall Cost of Addiction or Substance Abuse in the Workplace
According to the NCADD (National Council on Alcoholism and Drug
Dependence) 70% percent of the estimate 14.8 million Americans who
use illegal drugs are employed, additionally the Office of National Drug
Control Policy (ONDCP) estimates that $120 billion dollars is lost to
productivity, and an addition $11 billion is spent on healthcare costs.
Dealing with employees who are dealing with a drug or alcohol
addiction present risk in a variety of areas, but the financial impact of
lost productivity and higher absenteeism can have place a significant
burden on your company and cause stress for not only you, but also for
your employees.
PATRICIA A. STO. TOMAS (sgd.)
Secretary
14 August 2003
Implementing a drug free workplace policy
Illegal drugs are known to be a menace to society. Its effects to
humanity indubitably create a hostile atmosphere, to the prejudice of
the public. As we repeatedly hear from the news nowadays, there are

14. lots of innocent people victimized by the atrocious effects of illegal
drugs.
It cannot be denied that there is a firm commitment by our government
to suppress illegal drugs. We, the private sector, can also have our fair
share of contributing to the betterment of society, starting in our
respective workplace.
The Department of Labor and Employment (DOLE) issued Department
Order 53-03, Series of 2003 (the “department order”), otherwise
known as Guidelines for the Implementation of a Drug-free Workplace
Policies and Programs for the Private Sector, to assist both the
employers and employees in the formulation of company policies and
programs to achieve a drug-free workplace. The department order was
issued in compliance with Article V of Republic Act 9165, otherwise
known as the Comprehensive Dangerous Drugs Act of 2002.
The department order mandates all private establishments employing
10 or more workers to formulate and implement drug-abuse prevention
and control programs in the workplace, including the formulation and
adoption of company policies against dangerous drug use. In the same
manner, establishments employing less than 10 employees are,
likewise, encouraged to formulate and adopt the same policies.
The department order directs the employers to increase the awareness
and education of company officers and employees on the adverse
effects of dangerous drugs through continuous advocacy, education
and training programs/activities. It also provides for a treatment,
rehabilitation and referral program for employees found to be positive
for drug use.
In implementing this program, the employers are mandatorily required
to conduct random drug testing. Random drug testing is done when
officers and employers are tested at random intervals without prior

15. notice. Similarly, employers may also require drug testing as a
condition for pre-employment.
Two testing methods are required to be observed by the employees,
namely, the screening test and the confirmatory test. The screening
test determines the positive result, as well as the type of the drug used.
This is the first test to ascertain whether an employee is under the
influence of drugs. On the other hand, the confirmatory test is a
measure employed to affirm a positive screening test. An employee
initially found to be negative in the screening tests need not undergo
confirmatory test. In other words, a confirmatory test applies only to
those employees found to be initially positive during the screening test.
The conduct of drug testing, however, should only be performed by
duly accredited centers of the Department of Health (DOH). It is worth
stressing that failure to follow the proper drug-testing method cannot be
given credence and will result in illegal dismissal (Nacague v Sulpicio
Lines, GR 172598, 08 August 2010).
Employees found to be positive for drug use constitutes serious
misconduct and may even be a ground for termination of employment
(Bughaw Jr. v Treasure Island Industrial Corp., GR 173151, 28 March
2008). In the same manner, an employee who refuses to undergo
random drug testing may be guilty of insubordination for refusal to
follow company rules and regulations. Under the law, these instances
constitute just causes for dismissal.
In order to validly dismiss an employee, the employer is still required to
observe both substantive and procedural due process. Hence,
termination must only be made after the employee is accorded due
notice and hearing. Otherwise, the dismissal shall be rendered illegal.
This drug-free policy has long been issued by the DOLE. It now comes
to the strict adherence and implementation by employers in the private

16. sector to ensure a safe working environment for their respective
constituents. Indeed, change starts within us. To spearhead change,
we can do so by adopting a drug-free policy in our own workplace.
By
Atty. Lorna Patajo-Kapunan
-
August 28, 2016
DOLE urges employers to comply with rules on workers’ drug test
The Labor Department on Saturday reminded private sector
establishments to strictly comply with guidelines for the implementation
of drug tests in workplaces. Department of Labor and Employment
(DOLE) Order No. 53-03 specifies the guidelines for the
implementation of a drug-free workplace policies and programs for the
private sector.
“This Department Order (DO), which calls for random drug testing of
employees, applies to all establishments in the private sector, including
their contractors and concessionaires,” said Labor Secretary Silvestre
Bello III in a statement. DO 53-03 provides that workplace policies and
programs on drug abuse prevention and control adopted by companies
must include?
Advocacy, education, and training; Drug testing program for officers
and employees; Treatment, rehabilitation and referral; and
Monitoring and evaluation
Bello stressed that "random drug test must be conducted by the
employers on their employees and officials, and its schedule must be
unannounced, with each employee having an equal chance of being
selected for testing.”
Citing a report from the DOLE-Bureau of Working Conditions, Bello
said that of the 36,002 establishments assessed under the Labor Laws

17. Compliance System, only 29,607 (82.24%) have drug-free workplace
policies in place.
Also, he said that establishments that are yet to comply with the policy
can request for assistance from the DOLE Regional Offices and their
respective Labor Laws Compliance Officers in crafting the program
guidelines as mandated by DO 53-03.
On the other hand, DOLE also enjoins establishments with less than 10
workers to formulate and adopt drug-free policies and programs.
Under DOLE's drug-free workplace program, employers can subject
their employees to a mandatory drug test when it is "for cause testing"
and "post-accident testing."
For cause testing takes place when the company may ask an officer
and/or employee to submit to a drug test at any time it feels that the
employee may be under the influence of drugs.
Post-accident testing, on the other hand, is allowed in two situations:
the "near-miss" and the "work-accident" circumstance.
Near-miss refers to an incident arising from or in the course of work
that could have led to injuries or fatalities of the workers and/or
considerable damage to the employer had it not been curtailed.
Work-accident circumstance, on the other hand, refers to unplanned or
unexpected occurrence which may or may not result in personal injury,
property damage, work stoppage or interference, or any combination
thereof, which arises out of and in the course of employment.
All drug tests shall use the screening and confirmatory tests. When the
confirmatory test turns positive, the company’s assessment team shall

18. evaluate the results and determine the level of care and administrative
interventions that can be extended to the concerned employee.
Should the employee turn out positive during drug test, it does not
mean automatic dismissal.
Those found positive for drug use shall be referred for treatment and/or
rehabilitation in a Department of Health accredited center.
After the rehabilitation process, the employer's assessment team will
make recommendations.
All costs for the treatment and rehabilitation of the drug dependent
employee shall be charged to the worker's account, but the period
during which the employee is under treatment or rehabilitation shall be
considered as authorized leaves.However, repeated drug use, even
after ample opportunity for treatment and rehabilitation, shall be dealt
with the corresponding penalties under R.A. 9165 and is a ground for
dismissal.
Violations of DO 53-03 may be punished criminally under Article II of
RA 9165 and its Implementing Rules and Regulations, or
administratively under Article 297 of the Labor Code, as renumbered.
—LBG, GMA News
STATEMENT OF THE INQUIRY
This study is designed to know the impact of drug testing in the
workplace to the employees.

19. QUESTIONS:
1. Are those that are found positive of drug ground for termination/dismissal?
2. If the company has zero tolerance on drug policy and has an employee
who is drug positive what are its consequences?
3. What are the things employers have to do once one of their employee is a
positive drug user?
4. What if a certain employee is proven drug user yet is so productive in the
company and has a valid reason of using drug, are they still need to be
terminated?
SIGNIFICANCE OF THE STUDY
The result of the study would help the organization to make a better
decision in letting go of their employees when facing such scenario.
This would be beneficial to the employees as well for them to know on
what to do once they are proven drug positive.
This would make the organization live a more organized and fair
business to everyone.
DEFINITION OF TERMS
 Drug – other substance which has a physiological effect when
ingested.
 Law – rules that a community recognizes as regulating the
actions of its members.
 Shabu – a drug methamphetamine.
 Employer – a person or organization that employs people.
 Co-workers – someone in a similar role within an organization.
 Workplace – a place where people work.
 DOH (Department of Health) –responsible for ensuring health
services to Filipinos.

20.  DOLE (Department of Labor and Employment–is tasked with the
enforcement of the provisions of the Labor Code
 Consequences – a result or effect of an action or condition.
 Policy – a principle of action adopted by a business,or individual.
Chapter 2
RESEARCH DESIGN

21. To make a conclusion of this study, the researcher utilized the research
design with the case analysis that are available online. The laws and
the articles that are published and the studies that have been made
about the said topic.
To determine the impact of drug testing in the workplace to the
employees, the researcher would answer the question according to the
articles that would be presented in this study.
COLLECTION OF EVIDENCE
With the question, are those that are found positive of drug ground for
termination/dismissal? The answer is. Firing an employee who turns up
for work while drunk or on drugs might seem like the right thing to do at
the time, however hasty decisions could expose employers to
substantial legal risk. While in certain circumstances it may be
reasonable to dismiss an employee who has tested positive for drugs or
alcohol, employers need to follow their own workplace policies, says
Simon Clayer, Senior Associate with HopgoodGanim. “An employer
does not necessarily have an automatic right to dismiss an employee
who has arrived at work drunk or affected by drugs, or even having failed
a drug test,” Clayer says. Employers could easily find themselves in legal
hot water for instantly dismissing an employee who was suspected of or
tested positive for drugs or alcohol, he says.
“Many factors will be considered if the validity of that termination is
subsequently challenged in Court,” Clayer told HC Online.
Next, if the company has zero tolerance on drug policy and has an
employee who is drug positive what are its consequences?
https://www.ddb.gov.ph/component/content/category/45-research-and-
statistics
http://www.oshc.dole.gov.ph/updates/events-calendar/11-local/59-
department-order-no-53-03

22. https://businessmirror.com.ph/implementing-a-drug-free-workplace-
policy/
http://sc.judiciary.gov.ph/jurisprudence/2009/december2009/182216.ht
m
http://sc.judiciary.gov.ph/jurisprudence/2010/august2010/172589.htm
https://www.hcamag.com/hr-news/drugs-and-alcohol-at-work--a-
dismissible-offence-213860.aspx