Debbie Abrahams, shadow work and pensions secretary, has been dismissed from her role after an investigation into workplace bullying.
The Oldham East and Saddleworth MP was suspended in March after multiple allegations about her treatment of staff.
A Labour Party spokesperson said: "After a thorough party investigation into allegations of workplace bullying, Debbie Abrahams has been referred to the National Executive Committee disputes committee.
"She has been relieved of her post as shadow work and pensions secretary."
Margaret Greenwood, who became the temporary shadow work and pensions secretary, will continue in the role.
According to reports, Ms Abrahams has vigorously denied the allegations and criticised the investigation.
She said: "I strongly refute the allegations of bullying made against me. I believe the investigation was not thorough, fair or independent.
"I will continue to represent the people of Oldham East and Saddleworth, and to hold this government to account, from the back benches."