Victorian Small Business Minister Adem Somyurek has been forced to resign after an investigation found he bullied and intimidated staff.
A report handed to the premier said the upper house MP had had "physical contact" with a female member of staff, while another staff member was sacked for standing up for a colleague.
Premier Daniel Andrews said he had lost confidence in Mr Somyurek and he would be replaced.
"This has been a very dificult time...this is not want Victorian people expect of the Victorian government," Premier Andrews said.
"Every Victorian can rest assured that the government has dealt appropriately with this issue."
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