She can refuse to resign and tell them to issue a termination order, also conveying that she will challenge it in court. They might get cold feet and defer issuing the termination letter.
One of my friend's daughters, working at Wipro, was asked to resign about two weeks ago. She told them point blank to terminate her and that she would challenge it in a court of law. They then intimidated her by stating they would put her name in the Nasscom database. She told them to go ahead, as she would be going to court regardless. They tried other intimidating tactics and finally gave up, telling her to continue with her work. Your friend has to be strong enough to counter any intimidation.
Meanwhile, tell her to take up the matter with various IT forums such as FITE, which have also taken up the issue with the government.