NSW Premier Dominic Perrottet has terminated the services of Fair Trading Minister Eleni Petinos amid allegations of bullying in her office.
"Today I spoke with the Minister for Small Business and Fair Trading Eleni Petinos after some further matters concerning her were brought to my attention," Mr Perrottet said in a statement issued on Sunday night.
"In light of these matters, Ms Petinos' service as a minister will cease with immediate effect, and I will write to the governor in this regard tomorrow."
Ms Petinos, who was responsible for keeping the state's workplaces safe, last week rejected accusations of improper conduct linked to her office.
"I value my staff and endeavour to provide a professional and safe environment for them," she told AAP on Friday.
A report had claimed one of Ms Petinos' former advisers lodged a complaint with the Department of Premier and Cabinet about being "relentlessly bullied" by others while at work.
Ms Petinos has had up to eight staff members leave in the past seven months, according to reports.