Foley demands NSW Labor MP resign

NSW Labor leader Luke Foley has demanded the resignation of party whip Noreen Hay after federal police charged one of her staff.

The staff member is set to face court following an electoral fraud investigation into the office of the Wollongong MP.

"While Ms Hay has given personal assurances she has no involvement in the alleged misconduct ... her resignation from an office holder position of the parliament is appropriate," Mr Foley said in a statement on Sunday night.

The Labor caucus is set to meet as soon as possible to elect a new whip before the next sitting day of parliament, he said.

Meanwhile, the accused staff member has taken leave until the matter is dealt with by the courts.

Ms Hay stepped down from her role as opposition whip last year when the AFP raided her Wollongong office following a referral from the Australian Electoral Commission.

But she resumed her role 12 days ago after advice from her lawyer that she wasn't a suspect in relation to the investigation.