Employers will be able to demand drink and drug testing from a broad range of employees, such as van drivers or machine operators, under legislation to be published next month.
The new health and safety measures will make it an offence for an employee working in a high-risk setting to expose themselves or others to danger through the consumption of intoxicants such as drugs or alcohol.
In response to safety fears in sectors such as the construction industry, it is also understood there will be new penalties for serious health and safety breaches of up to €3 million or two years in prison.
On-the-spot fines of between €100 and €1,000 for employers and employees will also be introduced for less serious offences, such as failure to wear appropriate safety equipment.
The measures are contained in the Safety, Health and Welfare at Work Bill which will pave the way for the first major reform of the area in a decade.
The Minister of State for Enterprise, Mr Frank Fahey, is to publish the Bill next month once it receives Cabinet approval.
The drink and drug testing of employees, which is likely to prove controversial, will allow employers to take the measures where they reasonably suspect an employee to be under the influence of an intoxicant.
The Health and Safety Authority (HSA) will define the categories of "risk critical" work where such measure may be taken. Government officials say they expect it will apply to a wide range of areas.
The legislation will also include whistleblower's protection for employees who are penalised because they refuse to engage in work they believe to be too dangerous or which falls short of health and safety requirements.
Employees will be able to take their cases to a rights commissioner who will adjudicate on whether they have been unfairly penalised.
While there are provisions to toughen up penalties for serious breaches of health and safety law, plans to introduce a corporate manslaughter provision will not be included on foot of legal advice. It is understood there had been support in Cabinet for such measures, however, legal experts say it is a complex area would require separate legislation.
Much of the enforcement of the new measures will fall to the HSA's team of 100 safety inspectors. While there has been concern expressed in some quarters at the lack of effective enforcement of certain health and safety provisions, it is understood there are no plans as of yet to substantially increase the resources available to HSA.
Other measures to be included in the Bill include more "naming and shaming" of employers who flout the law. While at present companies which face prosection in the courts may be named, the legislation will allow for firms who receive official warnings, known as prohibition notices, to be named also.
Under the Bill, employers and trade unions may also agree practical guidance on health and safety in an industry or sector. These agreements can be recognised and enforced by the HSA.
The main aim of the new Bill, according to officials, is to repeal the existing 1989 Act and to provide the foundation for a new health and safety code for the next 10 to 15 years.