Ava Etemadzadeh, 27, said she was left feeling "very powerless and isolated" after Kelvin Hopkins was promoted the year after she complained about him.
She said an independent reporting body was needed to handle such complaints.
Labour says it takes such complaints "extremely seriously". Mr Hopkins has not commented on the allegations.
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Ms Etemadzadeh first complained about the Luton North MP in 2015 after she says he sent her a suggestive text message and made inappropriate physical contact while hugging her, after she had invited him to speak at a university event in 2014.
She complained to the party's then chief whip Dame Rosie Winterton who she said responded to her complaint.
But Ms Etemadzadeh said she was told action could not be taken while she wanted to remain anonymous. It is understood Mr Hopkins was reprimanded.
She believed that the Labour leader's office had been contacted about the complaint "and it was ignored".
"I'm very disillusioned because just a few months later I realised that Jeremy Corbyn promoted Kelvin Hopkins to the shadow cabinet, despite the fact that the leader's office was aware of this and they refused to act and that made me feel very powerless and isolated and alone."
She said she had gone back to the party this week and raised it again but was told she would have to make a complaint through a formal procedure, via its National Executive Committee.
Then she was contacted by a party official and asked to detail her complaints in writing but was warned the procedure would take a few days.
She says that within hours the party contacted to her to say that they were suspending Mr Hopkins, shortly before the Telegraph published her allegations.
Labour Leader Jeremy Corbyn declined to answer questions from reporters about Mr Hopkins's promotion on Friday morning.
BBC political correspondent Iain Watson said he understood that Mr Corbyn was aware that a complaint had been made against Mr Hopkins when he promoted him but was not aware of the full details and was told the matter had been closed.
Mr Corbyn's office have denied claims that Labour whips advised them not to promote Mr Hopkins because of what happened.
In a statement announcing the decision to suspend Mr Hopkins on Thursday, the Labour Party said: "On the basis of allegations received by the Labour Party today, Kelvin Hopkins has been suspended from party membership, and therefore the Labour whip, while an investigation takes place.
"The Labour Party takes all such complaints extremely seriously and has robust procedures in place to deal with them."
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