While I agree with you on it setting a dangerous precedent that's ripe for abuse, technically he's not been removed from his job.
He's still an MP until Friday, when parliament is dissolved and we no longer have any MPs. At that point he's no longer the elected representative for that constituency, and has no job. As is the case for every current MP.
And he's still free to run for re-election if he wants to, just as an independent instead of the labour party candidate. He wouldn't win of course, mostly because independents almost never do, and also because he's an odious little twerp.
But yes, it is a potential way to cause utter chaos. Put an allegation in against the PM a few days before parliament dissolves and watch the shit hit the fan!