One in five employees has gone to work drunk, according to an Australian Drug Foundation survey.

About 40% admit to working while still feeling the effects of alcohol, and one in five have called in sick due to a hangover.

The foundation’s Head of Workplace Services Phillip Collins says people do not fully understand the risks.

“Alcohol affects a person’s concentration, co-ordination and decision-making ability and slows reaction times. These can have implications for workplace safety and productivity.”

Drugs and alcohol cost Australian businesses $6 billion a year in lost productivity and absenteeism, while alcohol contributes to 5% of all workplace deaths and 11% of accidents.

Mr Collins says drug testing is common in industries such as transport or where heavy machinery is used, but it is considered controversial in other workplaces.

The foundation surveyed 1000 Victorian employees. It was funded by the Myra Stoicesco Charitable Fund.