I guess you are confused with Project & Job....
If you don't have a project (asuming it's a consulting firm) but you do have a job (meaning getting paid), you are in status.
If you don't have job (employer has laid off and they are no longer payin), you are out of status. H1 automaticaly expired as soon as sponsering company fired you.
what i understood was, even though i dont have job for 1 year, during my GC Labor process, if i am in status (holding valid H1) , then automatically i am eligible for next stages in the GC Process, without any problem.... right ???
How can you keep the status if you don't have a job. May be you meant project!