John Madden, from Kilmacolm, was accused of giving workers cash-in-hand to do shifts at the village’s Pullman restaurant.
He had already been in trouble over allegations of poor kitchen standards.
Madden had gone to a tribunal in Glasgow claiming constructive dismissal, but an agreement was made to settle outwith the court.
Stanley Campbell, retail business manager at Mitchells & Butler, which owns The Pullman, told the tribunal he believed Madden had paid casual workers cash-in-hand for shifts in the restaurant - which he said was against company policy.
He also claimed he visited the Pullman last August, when Madden was in charge, to find poor standards in the kitchen which concerned him, adding: “If environmental health walked in, we would have a problem.”
Mr Campbell further told the hearing he met with Madden and arranged for a manager in training, Diane Muckersie, to help him get the pub sorted.
Madden then became the deputy manager, while Ms Muckersie took over responsibilities.
The tribunal heard Madden was off work for five weeks, during which time the alleged irregularities came to light.
He said: “John would pay someone £50 to do a shift, then disappear and they would do his job for him.
“What made it more incredible was that he was out the pub so much that he would be lucky if he was working 20 hours a week.
“Occasionally when they were short staffed he would be having a drink in the pub and not pulling his weight.”
The tribunal heard Madden met Mr Campbell on 30 November last year, when he was invited to a disciplinary hearing and told he could lose his job.
Madden subsequently resigned by letter which Mr Campbell recalled ‘appeared behind the door of the pub’.
The tribunal heard more letters were sent by Madden claiming he was owed money including holiday pay.
Both parties reached an agreement to settle out of court.