Berrima Correctional Centre staff will reconsider their futures when the gaol closes in early 2020.
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Human resources representatives will visit affected staff to answer questions confidentially with staff, discuss transfers and voluntary redundancies.
They will also discuss potential opportunities to move into roles within the Department of Community and Justice.
Public Service Association of NSW union representatives met with staff on Wednesday.
A Corrective Services NSW spokesperson said transfers and voluntarily redundancies would be finalised by mid December 2019.
The spokesperson said the department would consult with the community before it decided what to use the facility for upon decommission.
The closest two correctional centres are based at Goulburn and Nowra.
Minister for Corrections Anthony Roberts said the new Clarence Correctional Centre as well as an expansion of several existing prisons created "an additional 700 jobs in different locations across the NSW corrections system".
In addition, about 1800 double-up and triple-up beds will be removed across the state, starting at centres on the South Coast, Mid North Coast, Glen Innes and Shortland.
Corrective Services NSW said this would increase the availability of safer, single-occupant cells.
As part of the operations improvement plan, Emu Plains and Kariong correctional centres will be repurposed into a dedicated mothers' facility and transit centre, respectively.
Commissioner Peter Severin said these changes gave CSNSW the "best opportunity to place affected staff in other roles".