1 question : "how do I link the menu to the form? "

Menu (and menu designer) integtated with Form
You have a vouple of ways to link both.
a)
main way - in Oracle Form Designer choose
FILE -- NEW -- MENU and build mrnu as you need
b)
in FORM (where place form name) -- property palette --
change " DEFAULT&SMARTBAR " to yuor menu module name.

Also you can link form and menu modules in run time use form API.

This is your statment --
RUN_PRODUCT(FORMS, 'employee', SYNCHORONOUS,
FILESYSTEM, RUNTIME, NULL, NULL).
Try this -->
Run_Product(FORMS, 'employee', SYNCHRONOUS, RUNTIME, FILESYSTEM, '', '');