Just take a look at your house/contents insurance. legal advice can be paid for buy your insurance company if you are in dispute with your employer
It would be at this stage I would be asking for the company to outline what it is they have in mind for you in writing. Sometimes something said by one person verbally may not be the same thing as what the company puts down in writing. It will also help you in your steps forward if you have a definitive to work with/against or for reference. Easy to say I know but keep calm, the last thing you need is to blow up at work as it may help their case down the line. As you've not mentioned a union I take it you are not in one given that, I would get the info in writing and see if you have a local employment lawyer who does those initial 30 minute consultations.
some great suggestions above..... one thing that no-one has brought to light is "ill health retirement" it maybe your company is trying to steer you to go on the sick for possibly your own long term benefit, if your ill long term then occupational health would be involked, if your health looks as if you are not making a recovery to what the company require you could qualify for ill health retirement, please get some qualified advice so you can make some informed decisions all the best
