Per the facts of our discussion, the foreign national employee applicant (FN) was previously in H-1B status and then was laidoff and prior to the layoff changed status to H-4. But the H-4 is still pending adjudication with USCIS. In this situation, we must wait for the H-4 to be approved before USCIS can approve the H-1B with XXXX(company name). - They don't have to wait for the H-4 to be approved before filing H-1b
Without it, the change of status back to H-1B cannot occur, because there would be a break in the “bridge” between H-1B to H-4 then back to H-1B.
So if the FN tries to cancel the H-4 after XXXX (company name) applies for the H-1B change of status, USCIS will not grant the change of status but will approve the petition so the FN can leave the US and reenter with the H-1B. - Are you going to cancel pending H-4 application, so that you must apply a visa outside?
If the FN’s current H-1B visa has expired, then he will also need to consular process for the H-1B visa before reentering the US after receiving the H-1B approval notice from USCIS.