The Galway East TD Colm Keaveney has voted against the social welfare bill.
Mr Keaveney will now lose the party and government whip as a result.
But he says he has no intention of leaving his role as Chairman of the Labour Party.
Deputy Keaveney said: "It's with a very heavy heart that I go against the Government on this issue."
While he loses the Parliamentary Labour Party Whip he intends staying on as chairman of Labour.
Mr Keaveney joins four other Labour colleagues on the independent benches - he'll be seated beside Roisin Shortall, Patrick Nulty, Tommy Broughan and Willie Penrose.