Corrections confirmed Bell was transferred to a different type of employment within the prison in April 2019.
Responding to the allegations, a Corrections spokesperson said there was no threat to the wider security of the prison and no threat was made to public safety at any time.
"As you will appreciate, this matter is currently before the court, and to avoid jeopardising these proceedings or prejudicing their outcome, we are limited in our ability to provide further specific information."
Bell was classed as a low-medium security prisoner, but Corrections increased that rating to maximum before dropping it again.
Bell filed an application in the High Court at Auckland for a judicial review of the increased rating before it was dropped, but it was understood Bell was continuing with the legal action as Corrections had not reinstated his kitchen job.
Bell's mother, Georgina Tahana, told Stuff that Bell was extremely disappointed about losing his kitchen job.
"He was trying, and he was motivated. He was so proud. He was really, really enjoying what he was doing. He would say, 'so what are you having for lunch, what's for dinner, here's what you can do'. I know what it's like when you want to do something and you want to make a good job of it. I don't know why [Corrections] did this," she said.
Bell will be eligible for parole in December 2031, at the age of 54.
He bludgeoned to death Mary Hobson, 44, Wayne Johnson, 56, and William Absolum, 63, during a robbery of the RSA.
He also seriously injured Susan Couch, who worked part time doing the club's accounts.
He was on parole at the time of the murders and already had 102 convictions.
Four months before the murders, Bell had worked as a barman at the clubrooms as part of a work-experience programme.