Anthony Pike allegedly illegally accessed information about individuals while working at Christchurch Men's Prison, one of the country's largest jails.

A Corrections intelligence officer quit while under investigation and secured a job with another government department, exposing a potential loophole in public sector recruitment.

Anthony Pike allegedly illegally accessed private information about people on the Department of Corrections' computer system while working at Christchurch Men's Prison.

It is claimed he then passed the information to a third party.

Pike, who worked for Corrections for more than a decade, was placed on "special leave" when the allegations surfaced and resigned, about two months later, in December.

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He is now employed by the Ministry of Business, Innovation and Employment (MBIE).

A source who alerted Stuff to the allegations is concerned about Pike's access to sensitive information in his new job, given what happened at Corrections.

The State Services Commission (SSC), which will next month issue new mandatory recruitment standards for public service agencies, is reviewing the circumstances of Pike's employment with MBIE after Stuff brought the case to its attention.

A Corrections spokeswoman would not provide details of the allegations that led to Pike being investigated, but said "we take our obligations under the Privacy Act 1993 seriously".

"Ensuring that personal information is treated with respect and managed in accordance with the Privacy Act 1993 is a fundamental part of how we operate on a daily basis. We recognise this information relates to real people and expect our staff to take proper care of it. We make these expectations clear to staff."

DAVID WALKER/STUFF Pike was placed on "special leave" when allegations surfaced and resigned, about two months later, in December.

An MBIE spokeswoman said reference checks, including one with Corrections, were conducted prior to offering Pike employment.

She declined to comment further for "privacy reasons".

A Corrections spokeswoman said it was unclear who from Corrections provided the reference check for MBIE, but it was not Pike's manager.

Under law, an employment investigation ceases the moment the subject of that investigation resigns. Privacy law prevents the employer from notifying or providing any information about the investigation to a prospective employer.

An individual is under no obligation to provide a reference or referee from an immediate past employer when applying for a job, but a potential employer can ask for one during the recruitment process.

An SSC spokeswoman said the commission would seek information from Corrections and MBIE about "the processes undertaken" in the employment of Pike.

"We're unable to comment about the particular circumstances of this case and the seriousness of the issues, until we have all the facts."

Next month the SSC would issue new mandatory standards requiring public service agencies to seek and disclose information about serious misconduct when employees were moving between departments or into the public service, the spokeswoman said.

"Integrity and ethical behaviour are core public service values and we want to foreclose any avenue that enables people to move from one department to another when serious integrity issues have not been disclosed."

The new standards, which were still subject to consultation, included "comprehensive requirements" around referee checks with a prospective employee's last manager, the spokeswoman said. Job applicants would be asked to consent to having information about serious misconduct disciplinary processes or findings to be disclosed to the recruiting agency.

Employment law specialist Caroline Rieger, a partner at Morrison Kent Lawyers in Wellington, said she believed exploring a system where people were employed by the whole of government had merit. This would mean the employer was the government in general rather than an individual agency.

Alternatively she suggested legislative change that would allow for better sharing of information about those employed in the public sector could be considered.

"The public should be able to have confidence in the public sector, that's why that sort of exemption to privacy law may be appropriate," Rieger said.

Stuff sought comment from Pike, who referred inquiries to the Corrections Association.

Corrections Association president Alan Whitely said he was unable to comment.