Vent pipe vents inside the house?

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I am having a bathroom installed in my basement which had a rough-in in place already. The installation required a pump to eject the waste from the pit to the main sewer drain line.

The contractor has installed the toilet and has installed the pump in the pit.

My question is, the vent pipe from the pit makes a T connection to the toilet vent pipe, and then the vent pipe turns up and ends with a vented PVC cap INSIDE my house!

Is this right? How can a vent pipe terminate inside the home? Isn't it code that the vent must go outside?