CEC processing stages

[jes_ON]

The refusal letter said the letter of employment does not establish an employer/employee relationship, that the payment of CPP contributions and employment insurance premiums, in and of themselves, does not establish the employment relationship and as a result, have not satisfied the officer that we were not self employed.

My husband set up the company he works for back in 2008 but has since (2011/2012) given up half the company to another partner in order to be an employee- director.

Sorry to hear about the refusal, but the "no self-employment" rule is very strict in the CEC class. So he is still half-owner of the business, which pretty much makes him self-employed and not qualified for CEC. You don't say when you applied, but the January 2014 version of the OP 25A has this to say (p, 11):

www.cic.gc.ca/english/resources/manuals/op/op25a-eng.pdf

Similarly, individuals who hold substantial ownership and/or exercise management control of a business for which they are also employed are generally considered to be self-employed

Not knowing his NOC, I would suggest anyway that he might have better luck with a PNP program, or even FSW...