Rogue MP Gaurav Sharma has been suspended from Labour's caucus - "effective immediately".
Prime Minister Jacinda Ardern made the announcement on Tuesday afternoon, saying it was the most appropriate response.
"This means Gaurav will continue as the Labour MP for Hamilton West and be expected to be present in Parliament. However, he will no longer participate in any caucus events or activities unless caucus’s permission is granted," Ardern said at a media conference.
It was a unanimous decision, Ardern said.
“Unfortunately, despite numerous attempts to engage Gaurav, he decided not to attend this afternoon’s meeting. I note that he did find the time to talk to media."
The decision will be reviewed in December this year.
Ardern said the caucus are very "hurt and upset".
"You need to trust your colleagues. You need to feel you can speak openly and freely. That sense of trust has been broken through repeated breaches of our caucus rules over the last five days and that made the decision very clear.
"In making the decision to suspend, caucus was clear that the team retains the right to revisit the decision at any time if the rules continue to be broken," Ardern said.
She claimed Sharma's behaviour amounted to "serious misconduct" within Labour's rules.
"We have expectations he follows the same rules as everyone else.
"Caucus has determined suspension is the most appropriate response to the repeated breaches of trust from Gaurav over recent days.”
The caucus meeting began at 2.30pm. At 2.31pm Sharma texted media alleging the Labour Party caucus met without him overnight to determine his future.
The Hamilton West MP claims members met at 8pm on Monday and he was not invited to attend.
“Caucus has determined suspension is the most appropriate response to the repeated breaches of trust from Gaurav over recent days,” Jacinda Ardern said. (Source: 1News)
Prime Minister Jacinda Ardern earlier announced the meeting on Tuesday would be held to "seek resolution" to issues surrounding the Hamilton West MP and said it was for the caucus to resolve issues "of this nature".
"It is a caucus, we will essentially have the opportunity to come together as a team."
She said she "genuinely wanted to hear" any concern of his peers and that "for natural justice of course Gaurav Sharma will be a part of that meeting".
After the announcement Māori Party co-leader Rawiri Waititi posted his support for Sharma on his Instagram account.
Waititi said Sharma has been, "brave and courageous at this particular time".
"I just think he's got huge integrity, huge mana and I just want to mihi to him."
It came as Sharma on Monday posted new allegations on Facebook at the time Ardern was holding her weekly media conference.
READ MORE: Parliamentary Service: No issue with spending claimed as misuse by Sharma
On Thursday last week, the first-term MP for Hamilton West launched a broadside against what he alleged was a bullying and gas-lighting culture within Parliament.
On Friday, the MP published a 2600-word Facebook post detailing more grievances and other allegations about his time in Parliament.
The Labour Party has repeatedly disputed and rejected the allegations levelled by Sharma.
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