@lizzi He continues to exist as your employee.
You are already too soft.
Unless you have a hard plan to fire him in the future when it's better for you, you should be making the demand for payment yesterday and cutting him loose tomorrow.
@filipinaya What was the expectation of "work"?
Were you an "investor" or and "owner/operator"?
If these weren't spelled out, then they need to be before you all get farther along into the weeds.
This kinda feels like a bait and switch.