It is unclear how many schools are affected
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Up to 80 people working at schools in Powys have not been cleared to work with children, it has emerged.
Powys Council said it had uncovered "weaknesses" in its checking procedures for the Criminal Records Bureau (CRB).
It said no-one who had not been checked would work with children unsupervised until the investigation was complete.
Welsh education minister Jane Davidson said she was "shocked" and said it was "not acceptable" while one union leader said he was "astounded."
The council will confirm later how many employees had been overlooked, but it is believed to be around 80.
It is still unclear how many schools are affected and what types of workers have slipped through the net.
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This is an unacceptable situation
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The CRB runs checks for organisations which are required by law to vet people working in positions of trust, often with children.
Anyone who has been cautioned for a sex offence would automatically be banned from working in schools.
The National Association of Schoolmasters Union of Women Teachers (NASUWT) said it was "astounded" that so many school workers had been overlooked by the council.
A spokesman for Powys Council said: "An internal review has revealed weaknesses in the council's CRB checking procedures.
"We are currently establishing the extent of the issue and will issue a further statement when our investigations are complete."
But he said that no person without a records check would be allowed to work unsupervised with children until the investigation was complete.
Extra staff have been brought in "to make sure the review is carried as quickly as possible".
Geraint Davies, general secretary of the NASUWT in Wales, said the council had to take urgent action.
"This is an unacceptable situation," he added.
"In order to ensure peace of mind, nobody should be employed in a school without a full CRB check being carried out.
"They must step up the checking process and find whoever these people are. It's in the interest of all concerned."
Last year, the Home Office said customer satisfaction about the CRB checks was "now at an all-time high" and said checks in 2005 prevented 25,000 unsuitable people being recruited.
Ms Davidson said the Powys position was "not acceptable considering that the assembly government has kept the education sector informed about the processes required".
She said schools and councils back in 2002 had been given guidance on "robust pre-appointment procedures" and she had reminded head teachers and governors in a letter again a year ago.
"On 20 March I will also be bringing forward legislation to make enhanced CRB checks and other pre-appointment checks mandatory across the school workforce," she said