Your friend is really in a very difficult situation and going to your embassy or to the labor office will not help you much but rather may complicate the situation further. I suggest that, you advise your friend to ask for an apology from his supervisor. I presumed that the termination incident happened out from the heated argument between them and each of them maintained their respective pride. An apolgy from him I believed will settle things peacefully and may perhaps win his job back not only his benifits. Be humble.