What did you boss do after you told him that?
1. If he terminated your service without notice, he has to pay salary in lieu of notice. If you are not happy about it, you can go to the Industrial Relations Department to claim for reinstatement.
2. If you are covered by the Employment Act, you are entitled to the benefits unless you were dismissed because of misconduct.
3. Yes, you have to work throughout the the two months' notice period if he gives you that notice.