<xs:element name="employee"> : It defines the element name employee.
<xs:complexType> : It defines that the element 'employee' is complex type.
<xs:sequence> : It defines that the complex type is a sequence of elements.
<xs:element name="firstname" type="xs:string"/> : It defines that the element 'firstname' is of string/text type.
<xs:element name="lastname" type="xs:string"/> : It defines that the element 'lastname' is of string/text type.
<xs:element name="email" type="xs:string"/> : It defines that the element 'email' is of string/text type.