Thousands of working New Zealanders are in jobs requiring they be clean of drugs, and it is reasonable to expect someone looking for work to do the same. In this context it is reasonable for employers to expect people listed with Work and Income to be drug-free."
The requirement would only apply to those with a "work expectation" attached to their benefits, and then only for available work opportunities requiring drug tests.
Work and Income would reimburse employers for test failures, and those who failed a test would have to pay the cost out of their benefit.
"People will be given a warning and a reasonable period of time to stop using drugs before having to take another drug test, which is something that reflects common practices I saw when working in the drug policy area with employers across New Zealand," Mr Sabin added.
"Further failures will result in benefit reduction and possible cancellation, which is again entirely consistent with common workplace practices."
Those who failed a drug test or refused to apply for a drug-tested job would have to agree to stop using drugs or their benefit would be halved.
They would be given 30 days to allow any drugs they had taken to leave their system. Those who failed or refused a second test would have their benefit suspended until they agreed to provide a clean drug test within 30 days.
If they did not do so their benefit would be cancelled.
Those with addictions would be supported to get help, while those on some prescribed medications would be exempt.
"Experts will carry out robust clinical assessments to determine whether people have a drug dependency or if their use falls into the category of recreational, or non-dependent use."