Proposals to create a database of employees that have been dismissed over alleged misconduct are "likely to be illegal", according to one organisation.

Human rights group Privacy International stated that such a phenomenon would come close to libel if it resulted in job candidates failing to secure a position.

A spokesperson for the watchdog called for the idea of the database to be debated in parliament and the courts.

He said: "I can’t understand a situation where a database such as this one – run by the private sector, listing your accusations that have not been upheld in a court of law – [is] used by others to pass judgements on you."

The National Staff Dismissal Register is expected to be launched later this year and will allow employers who subscribe to report former employees accused of theft or other misconduct.