Hi, it will be impossible to know exactly what they are planning to do until they send you a letter telling you. Sometimes the buyer takes all employees, sometimes the seller keeps people on leave, it all comes down to what the buyer and seller negotiate. If they are terminating all employees normally they would terminate you the same way as everyone else to avoid the risk of a human rights claim. But it splits on whether the buyer takes the employees who are on leave. The buyers are more likely to take the employees on leave in a big company than in a little one since it’s a relatively smaller and more predictable expense than for a littler company. I am assuming you aren’t unionized either?
Your LTD is separate from your employment relationship. If you are still disabled your LTD claim will continue even if your employment is terminated (for as long as the insurance coverage goes for - check your policy for that, some people have two years, some people have till age 65). Your benefits go with your employment relationship, so they will probably end if your employment is not picked up by the buyer. If the seller isn’t going to be continuing operations then they won’t be able to keep your benefits going so try to get stuff done now if you can. Sometimes if the seller is only selling part of its operations then it can keep employees on leave on benefits even if their job was ‘sold’ to another company. But it might affect whether there is a job you are qualified for to go back to when you do get better.
Severance and termination may or may not be deductible from your LTD payments, it depends on what your policy says. Mine says severance is not deducted from LTD payments. Others do have it deducted. You’ll need to check the wording of your policy to see. If they are terminating your employment on the sale of a business they will probably have to do it whether or not you ‘take the payout’ - if they are going to terminate your employment, you will probably be negotiating how much they pay you and how it is characterized rather than whether or not your job gets terminated. If your LTD policy deducts some types of payments but not others from your LTD, you should ask your company to characterize the payments to you as the type of payment that doesn’t get deducted. For example LTD might deduct payments in lieu of notice but not severance payments, and you might be able to get them to agree to pay everything as severance and nothing as notice so that it’s not deductible. But check your policy wording.
I am sorry for all the uncertainty, I know it’s very stressful not being able to plan because you don’t know what’s going to happen yet. Hopefully all will become clear soon.