"This incident created harmful effects on Huawei's global reputation," news agency AFP quoted the company as saying.
Citing management rules in company contracts, Huawei said it "has decided to immediately terminate its employer relationship with Wang Weijing."
"Huawei has always abided by applicable laws and regulations of the country where it is located... and requires all employees to abide by the country's laws and regulations," it said.
Huawei, the world’s biggest producer of telecoms equipment, faces intense scrutiny in the West over its relationship with the Chinese government and US-led allegations that its equipment could be used by Beijing for spying.
Polish authorities on Friday arrested Wang Weijing and a former Polish security official on spying allegations, a move that could fuel Western security concerns about the telecoms equipment maker.
Reacting to the Weijing's arrest China had said that it was "highly concerned" by the arrest.
"We require relevant countries to handle relevant cases fairly and in accordance with the law, and earnestly safeguard the legitimate rights and interests of the person concerned," news agency AFP quoted Chinese foreign ministry as saying.
In December, Canadian authorities arrested a top Huawei executive, Meng Wanzhou, at the behest of US authorities as part of an investigation into alleged violations of US trade sanctions.
US intelligence agencies allege Huawei is linked to China's government and that its equipment could contain "back doors" for use by government spies. No evidence has been produced publicly and the firm has repeatedly denied the claims.
The US criticism has led to a number of Western countries and companies to review whether they should allow Huawei's equipment to be used in their telecoms networks.
(With inputs from news agencies)
Huawei in a statement said that its employee's alleged actions 'have no relation to the company'.