On Friday, media revealed that an anonymous complaint had been made by a staffer from Ms Petinos’ office, alleging bullying.
The fair trading minister who is responsible for workplaces safety, rejected the accusations on Friday after media reports emerged that she harassed a male employee and used terms such as “retarded” and “stupid”.
“I reject any allegations of improper conduct” Ms Petinos said to media.
Ms Petinos has had up to eight staff members leave in the past seven months, according to the reports.
In a statement to AAP, the department said it had not received any complaints about Petinos’ office.
The male staffer who claims he has been allegedly bullied by Mr Petinos, only lasted six weeks.
Reportedly others in the office speaking to media have said he was unsuited to the job.
Speaking from India, on Friday, the premier confirmed an investigation had taken place into the complaint but said that he was satisfied with the outcome.
However, Mr Perrottet now said Mr Petinos’ position had become untenable and he dumped the Miranda MP from state cabinet, a day after returning from an overseas trade trip.
“I have implemented as premier the strongest public workplace procedures and practices anywhere in the country … to ensure confidence, particularly for people who are in a workplace where they don’t feel safe,” Perrottet said.
“It’s just hell,” one unnamed staffer told News Corp when describing the working conditions in the minister’s office, adding “I felt unsafe”.
Accusations that have surfaced include threats of violence by Ms Petinos “over small mistakes” a staffer said anonymously.
Customer service and digital government minister Victor Dominello will take over the portfolios vacated by Ms Petinos.
Following her dismissal Ms Petinos issued a statement saying she had been under “intense pressures and stresses” in her roles.
“Tonight the Premier informed me I would no longer be a Minister in his Government,” she said.”I am proud of my work while I served the people of NSW as Minister for Small Business and Minister for Fair Trading.”
Labor Leader Chris Minns called the allegations “horrific” and said Petinos needs to provide an explanation.
“There wouldn’t be a workplace in any part of this country where someone wouldn’t be immediately fired if these allegations are true,” he said last Friday.
Labor frontbencher Courtney Houssos labelled the reports as troubling.
Ms Petinos was elevated to a ministerial post last December as a way of increasing the number of women in the NSW cabinet.
“I’m particularly concerned about the impact that these would have had on young women in her office, perhaps during their first political job,” she said.
The dumbing of Mr Petinos has added to Mr Perrottet wows, his trade mission to Japan, Korea and India have been marred by constant questions on issues on the home front, including the appointment of former deputy premier John Barilaro to a lucrative overseas role.
The Barilaro scandal has also enveloped Trade Minister Stuart Ayres, who joined the premier in India on Wednesday.