Payment of statutory bonus cannot be forfeited for such kind of misconduct whereas it is justifiable in the case of dismissal for some quantifiable loss caused to the company and as part of compensating the loss to the extend of bonus payable to the employee. Performance being something which is relative and relative to some targets set by you, it will always be influenced by some or other personal bias and judgments of the reporting officer. Therefore, in order to avoid complications, send him off by paying notice pay in gross and bonus at actual.
Poor quality of work may be professional incompetence but not misconduct.
Poor quality of work can be due to various reasons.
Was his work earlier good?
Why only in last few months quality has deteriorated?
However in the bare facts given above non payment of bonus can raise issues which are best avoidable.
Extract from Bare Act
Section 9. Disqualification for bonus.- Notwithstanding anything contained in this Act, an employee shall be disqualified from receiving bonus under this Act, if he is dismissed from service for-
(a) fraud; or
(b) riotous or violent behavior while on the premises of the establishment; or
(c) theft, misappropriation or sabotage of any property of the establishment.
The present case does not fall in these circumstances, clauses.
Better pay the worker.