Thanks for responding Char,
I also don't like FLR-O option, but this was advised to me by immigration helpline!!
My employer has login detail of last person but UKBA has warned in bold letters that if login is used by any other person then license can be cancelled. It can be argued that we can approach last person and get him to use the login, but then policy is not clear as to whether or not he can do that even though he is not employed by the company anymore. My employer is reluctant and likely not to use this option just in case if it affect company reputation.
What I have thought so far is as follows;
I'll wait until couple of days before visa expires, if we get the login by that time then great, otherwise I would apply for extension of Tier 2 without new reference number and attach a letter from company explaining that login access is in progress. They will either hold on to my application until I provide them new reference number, which is great, Or they will reject my application and hopefully give me time (28 days i think) to either leave the country or put new application in. By that time hopefully we will have new login and can put in new application with reference number. My confusion here is that whether it will still be considered a break in 5 year continuity or not (due to original application of extension rejected and re-applying again). Technically speaking, I would still be legal and shouldn't be considered as over stayed as I'll be putting application within time allowed, but I am not sure.
As far as new employer option is concerned, I am not sure about it yet whether it will go ahead or not, but just one point I want to raise that they should not be required to carry out RLMT as it is exempt for me (my route was PSW to Tier 2 originally which allows exemption of RLMT and an unrestricted CoS was issued to me first time and even job didn't have to be in shortage occupation). So I hope same rules still apply in my case!!