A senior manager with Virgin Trains told a tribunal the length of a Muslim worker's beard was never an issue in his dismissal.
David Adams said Mohsin Mohmed, 23, of Ilford, Essex, was dismissed for his "general lack of enthusiasm".
Mr Adams admitted on Wednesday that he had asked Mr Mohmed whether he would rather shave his beard or lose his job.
Mr Mohmed, who claims discrimination, says he was told to trim his beard and not to wear a skullcap at work.
He has also said he was criticised for refusing to serve alcoholic drinks, contrary to his strong religious beliefs.
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It was not because it was long but because it was very unkempt
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He has brought a claim of racial and religious discrimination and harassment against Virgin West Coast Trains.
Mr Adams, station manager at Euston, said he and Mr Mohmed reached an agreement that his beard could remain one fist in length - about four inches.
Mr Mohmed then trimmed his beard by two inches but in
a subsequent conversation he was told it was still not "neat and tidy" enough.
"The length of beard was never the issue," Mr Adams told the tribunal in London. "It was not because it was long but because it was very unkempt."
He said he had not taken into account Mr Mohmed's religious beliefs when judging the beard and its state.
No written record
Mr Mohmed was not told at any point between his three-month review and dismissal in February 2004 that he was not reaching
satisfactory standards, the hearing was told.
Mr Adams agreed that according to the Virgin Trains' handbook this would constitute "grossly inadequate communication" but said the procedure did not apply to employees on probation, like Mr Mohmed.
Mr Adams said serious concerns about him had existed, despite the fact that there were no written records.
The hearing continues.