Public servants stand to lose their jobs if the NSW corruption watchdog finds against them under "long overdue" changes to legislation.
Announcing the reforms on Tuesday, Premier Barry O'Farrell said they were designed to improve the integrity of the public service and restore accountability to government.
He said legislation would be amended to allow disciplinary action to be taken against any public servant that the Independent Commission Against Corruption (ICAC) found had engaged in corrupt conduct.
"This will enable the relevant disciplinary body to take action against a public official on the basis of ICAC findings," he said.
At the moment, an individual summoned to appear before the ICAC can take a Section 38, which declares their objection to producing documents, information and answers for all their testimony.
This means that their evidence isn't admissible in criminal, civil or disciplinary hearings against that person.
The government then has to launch its own investigation, meaning "their hands are tied for months" while the corrupt workers remain employed and on full pay.
"It is a ludicrous situation and it's one the government intends to remedy," Mr O'Farrell told question time.
"It's absolutely astonishing that evidence at the ICAC can't be used to take disciplinary action against such individuals."
Under the proposed changes, a witness who admits to corruption won't have the benefit of the protection of Section 38 in disciplinary proceedings.
"We believe this is a long overdue change and one the community, as well as law-abiding public servants, would support," the premier said.
"If someone is acting corruptly, they shouldn't be part of the NSW public service. It's as simple as that."