Immigration NZ has confirmed eight staff were stood down in the past several weeks, over" a series of what appear to be inappropriate and unprofessional Teams chats".
Head of Immigration NZ Alison McDonald, confirmed to RNZ the minister had been informed of the matter on 5 June.
"The Ministry of Business, Innovation and Employment (MBIE) - of which INZ is part - is looking into a series of what appear to be inappropriate and unprofessional Teams chats involving some of our people," McDonald said.
"These comments appear to be in breach of MBIE's Code of Conduct, which sets out the expectations we have of our people, including that we are professional and objective in our language and all our actions and interactions."
She said the allegations were "serious and concerning".
"At this time, eight people have been placed on leave in accordance with MBIE's employment processes," she said.
"Inappropriate and unprofessional behaviour by our people is completely unacceptable and MBIE will not hesitate to take any appropriate disciplinary action."
McDonald said she was disappointed in the alleged behaviour, and it was "contrary to all of MBIE's values and not the standards expected of public servants".
An MBIE spokesperson said the ministry became aware of the Teams conversations while looking into an unrelated complaint about decisions made by an employee, which was not substantiated.
In a statement, Immigration Minister Erica Stanford said it was "an operational matter for MBIE".
"Any allegations of inappropriate behaviour need to be thoroughly investigated. MBIE advises me it has no place for offensive and discriminatory behaviour and I am confident they will appropriately address this issue."