Mr Perrottet said in a statement released on Sunday night: "Today I spoke with the Minister for Small Business and Fair Trading Eleni Petinos after some other matters concerning her were brought to my attention.
"In light of these matters, Ms Petinos' service as a Minister will cease immediately, and I will write to the Governor in this regard tomorrow.
"Minister for Customer Service and Digital Government Victor Dominello will assume Ms Petinos' portfolio responsibilities."
On Friday, Ms Petinos denied allegations of bullying staff and using inappropriate language, including a profoundly offensive term.
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