Will Fowles had been chair of the electoral matters committee, where he was set to pocket an extra $19,883 this financial year on top of his base MP salary of $198,839.
But the government on Tuesday moved a lower house motion to discharge Mr Fowles from the role and instead replace him with first-term Kororoit MP Luba Grigorovitch.
It came after upper house president Shaun Leane confirmed the alleged assault that led to Mr Fowles' exit happened outside of parliament.
"The incident that has been referred to did not occur on the parliamentary precinct," Mr Leane said.
"This is something that myself and the speaker ascertained immediately once we saw the media report."
But he was concerned about how people felt they were treated and wanted everyone to feel safe at work.
"The other challenge we have is, this institution was built around just all men," Mr Leane said.
"You just have to look in the corridor; we're changing that.
"We're actually putting portraits of important women in this institution."
Mr Fowles said he was yet to receive details of the allegation against him.
He resigned from Victorian Labor's parliamentary party following the complaint but has strenuously denied the claim and vowed to fully co-operate with any process or inquiry.
"I was astonished to read reports this morning that the president of the Legislative Council has had details of the supposed allegation shared with him," Mr Fowles wrote on Facebook on Tuesday.
"Those details have still not been shared with me."
The Victorian opposition last week wrote to Department of Premier and Cabinet secretary Jeremi Moule, requesting he investigate the allegations against Mr Fowles.
It followed up with a letter to lower house speaker Maree Edwards on Monday to make the same request after receiving a "noncommittal" response from Mr Moule.
Mr Leane said Ms Edwards would respond to the opposition's request but noted the pair were unable to investigate something that didn't occur on the precinct.
Opposition Leader John Pesutto said it did not matter whether the alleged incident occurred within the parliamentary grounds or not.
"If parliamentary staff are involved ... it represents a clear and concerning misunderstanding of the obligations of Mr Leane," Mr Pesutto said.
The opposition, he added, does not know the identity of the alleged victim and doesn't want to know.
"What we're really interested in is, is the parliament of Victoria the safest workplace it can be?" he said.
"If it's not, then what steps need to be taken to make sure it is."
It is unclear whether Mr Fowles remains a member of the Labor Party.
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