Reimbursement to employers and debt recovery
The potential employer can be reimbursed for a failed drug test for a client only when Work and Income receives confirmation a drug test has been completed that was part of the pre-employment process and the potential employer has completed the Pre-employment drug test claim form for employers which includes details such as:
- the name of the employer
- the type of test - whether it was a screening or evidential test or both
- confirmation that the drug test was to the drug test standard
- confirmation of a failed test result and
- the cost of the failed test and the payment rate they are claiming
At the same time that the employer is reimbursed, a debt for the cost of the drug test will be manually added to the partners SWIFTT record by NPCU/NAC.
For more information see:
- Reimbursement and claims for Employers/Drug Test Agencies [no link find out why]
A training provider cannot be reimbursed for the costs of a failed drug test. In most cases the contract with the provider will have already factored these costs into account.
Although a drug test provider may conduct the testing the employer will be the one to be reimbursed for the costs relating to the failed drug test.
The information provided related to the failed drug tests is not to be shared with other employers, and is only to be used for the purposes of establishing whether a partner has failed, without good and sufficient reason, to meet the drug test obligations.
The reimbursement of failed drug tests only apply to jobs where
- the partner with work obligations has been referred by Work and Income
- the vacancy is listed with Work and Income and
- the vacancy requires a pre-employment drug test
Recruitment agencies
A recruitment agency can be reimbursed by Work and Income for the cost of any failed drug tests where they will act as the employer once the job is secured, eg when the person's wages will be paid by the recruitment agency.
Standard rates that can be reimbursed for failed drug tests
There are standard rates that can be reimbursed to the potential employer for a failed drug test. These amounts only cover the actual and reasonable costs of the tests.
The standard rate of payment will be paid to the employer regardless of the amount that they charge (ie regardless of whether the amount is higher or lower).
For recompliance drug testing the full cost can be paid.
Standard rate of payment for screening tests | In-house testing When an employer has staff on their premises that have been trained to the New Zealand Drug Testing Standard, and have attained the relevant NZQA unit standards | $30 |
External agency testing Where employers contract a drug testing company to do pre-employment drug testing procedures on their behalf | $70 | |
Standard rate of payment for evidential tests | Evidential testing When an employer sends samples to a laboratory for evidential testing, the cost associated with this type of testing is significantly higher than a screening test | $120 |
Standard rate of payment for recompliance | Screening or evidential tests | Actual and reasonable costs - generally this should be the same as the standard rates of payment |
The costs for alcohol testing cannot be reimbursed as this type of test is not included as a drug test.
Debt recovery
Once the cost of the failed drug test is reimbursed to the employer, it must be established as a debt to the partner. The amount of the debt is the amount that has been reimbursed to the employer.
Debt repayment options must be discussed with the partner giving consideration to any other debts the partner may have. Add notes to the partner's record about the negotiated debt repayment.
For more information see:
- Repayment options available to clients [no link find out why]
