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Resignation is always advisable. On resignation the company will release you accepting your resignation. If they terminate you they will write terminated in the release order. If the new company will ask for release order, it will not be good for producing termination order. It will be a blot on your career.
Your salary does not attract for ID Act.
It is better you resign and take two months salary.

From India, Kolkata
In K Ramesha va HCL Technologies case, the court ruled, "the job of an engineer in a software company involved skills and technical knowledge, and so Ramesha was a ‘workman.’"
From India, Mumbai

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