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It's better to resign and look for other opportunities
It is not harmful.. But whenever the manager is doing do, then have confirmation from HR -Manager once and submit resignation. Else it will create problem if terminated from service.. due to bgv from new employer
Chief
Not harmful but if they terminate they are liable to pay 6 month salary in full
If the company terminates you, it will go on record. Even if they are kind enough not to put on reliving letter (there are high chances they will), they will always mention that you were terminated during any future bgv. Manager can't force to resign you. However, if the issue is your performance, they must provide support/training to improve your performance. But even after that, your performance doesn't improve, they can terminate you.
Also, measuring your performance is something your manager will do. It's really difficult to argue good vs bad performance.