Please help. Vomiting from Worry over Work Situation?

For goodness sake! The answer is staring you in the face! Take the redundancy and get out of there. Things aren't going to get any better. See if you can get a reference out of them and then take the money and run! The Director may well be a bully and may well be guilty of harment, but proving either of those things is not easy. Make the most of a bad situation and get out of there on reasonably good terms. Taking time off for stress will only serve to make things worse with your current employers and won't stand you in good stead with prospective new employers.