More than 70 enrolled nurses employed by the Nelson District Health Board are to be restricted from work in acute wards.
The Health Ministry says the move is designed to improve safety standards.
It follows a review of the case of Mark Burton, who stabbed his mother to death after his release from a psychiatric ward at Southland Hospital.
New Zealand Nurses Organisation chief executive Geoff Annals said the directive ignored the fact that most enrolled nurses had about 15 years' experience and moving them would increase the load on other nurses.
Herald Feature: Hospitals under stress
Nelson nurses restricted from acute wards
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