Not in India but in Hungary you also have exit paperwork. Without the exit papers from your previous company, a new company cannot begin making social security

Not in India but in Hungary you also have exit paperwork. Without the exit papers from your previous company, a new company cannot begin making social security contributions on your behalf, which means your employment is not legal (there is a grace period I think but most companies will not allow you to start work without the exit papers). Where I work this is not weaponised to stop people leaving, but we do withhold the exit papers until the last day of the notice period (it is common in Hungary to have to give 30-60 days’ notice to your current employer) as a type of enforcement.