The Iron are now in a relegation scrap since an awful sequence of results since Christmas which saw just three wins from nineteen games. Laws last four games in charge of the Iron brought four straight defeats, including the 3-2 loss at home to bottom of the league Carlisle United.
Laws had previously guided Scunny into the second division before instant relegation. Last season they reached the play-off semi finals only to be beaten by Lincoln.
Laws spent two years in charge of Town with a large amount of relative success until the infamous Ivano Bonetti incident which ultimately cost him the Town job.
A statement on Scunny's official site read: "Following a meeting between the Directors and Brian Laws it has been mutually agreed that it is appropriate that his time at Scunthorpe United Football Club has come to an end.
Laws sacked by Scunny
"The Directors would like to place on record their thanks for his work on behalf of the Club over the past seven years and wish him every success for the future."
Laws' assistant Russ Wilcox will take charge of team matters for the short term.
Laws' assistant Russ Wilcox will take charge of team matters for the short term.