The employment relationship in public schools is governed by constitutional mandates, federal and state statutes, administrative regulations, and contractual obligations. This chapter discusses fundamental aspects of the employment relationship that are influenced by legal principles derived from state law, local district policy and practice, and the unique terms of a particular employment contract. The first part covers employment qualifications of faculty and staff. Issues discussed include loyalty oaths, competitive examinations, professional growth requirements, residency requirements, and certification. The second part discusses the contract of employment, including its relationship to state statutes, board policies and regulatory provisions, and noncontractual duties. The third part defines tenure and covers variables such as probationary periods, tenure eligibility for other school employees, acquisition of tenure by default or acquiescence, and waiver of tenure rights. The final section covers adverse employment decisions such as suspension, transfer, and demotion. A summary follows, defining the school board's scope of authority in terms of the relation between the rule or policy to be implemented and the legally defined mission of the school. (TE)