Channel 2 reported Tuesday Sarah Netanyahu was suspected of mistreating a caretaker from Nepal.
The television report said she suspected the worker of stealing money from her 96-year old father. An argument allegedly ensued and the worker fell, injuring her hand.
In response to the theft allegations, the worker alleged Netanyahu failed to feed her, cursed her and refused to give her vacation time.
A statement issued by Binyamin Netanyahu's office denied the charges and said the worker's allegations were baseless, made only after she found out the agency employing her was looking for a replacement, The Jerusalem Post said.
"When it became known to her that she was about to be fired -- something that could lead to her being deported from the country -- she made up the story, and now there is a cynical and unworthy campaign against the Netanyahu family," the Post quoted the statement issued by Netanyahu's office as saying.