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Gif an employee resigns, the company need not pay severence package. If the other way around, they are legally bound to pay the severence package (which, at a minimum, must = the full salary for the notice period).
For those employees who request resignation from their side, the company can say, “we are relieving you immediately, so don’t expect sev pay, nor the salary for the notice period since its you who asked to be relieved.”
Such games the company’s play!
The “gun that they hold to your head” is the point about relieving letter and code of conduct letter.
So, your call as to which option you choose.
Obviously, if you already have a job or can quickly get employed, then parting on good terms is good.
