Can i transfer my H1 in this condition?

In your situation, you can transfer to another employer and begin working immediately once the transfer is filed. The risk is that a failure of U.S.C.I.S. to approve the transfer means that you will be considered out of status. Whether to wait for your approval to be completed is up to you, and you would have to take into consideration your wishes for safety and permanent residence. A new employer can begin your green card process even if you are not on the payroll. An employment based PERM case does not require the beneficiary to work for the employer until permanent residence is approved. Due to the limitations of the Lawyers.com Forums, Alan Lee, Esq.'s (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided herein by the Firm is general, and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.