Deloitte to Penalise Top Executives for Skipping Annual Health Checkups; Here’s Why

Deloitte’s top leaders are likely to attract penalties as high as ₹1lakh if they fail to undertake the annual health check-up. In a meeting regarding compensation on Friday, the consulting and audit firm said it might slap ₹1 lakh from partners and ₹50,000 from executive directors if they miss the yearly health check-up, the Mint reported. 

“Every year, they warn us but we did not expect a penalty. While most of us do the mandatory health check-ups, there are always a few who postpone it,” Mint reported, citing a senior executive. “It will be interesting to see if the company goes ahead and implements it,” the executive added.

The penalties will reportedly be effective from this fiscal year. Additionally, the money collected in the form of penalties from top executives will be deposited in the CSR (corporate social responsibility) fund. 

The move marks a proactive step taken by the audit giant to prioritise the health of its senior workforce. The move reportedly aims to lower the insurance costs borne by the company. 

“It is a two-pronged approach. While the health check-ups bring in a certain kind of well-being, companies are also aware of whether the senior executive is fit enough to take risks and decisions,” an executive reportedly said. “It also lowers the insurance costs of the company over a 2–3-year period as any red flags are immediately addressed,” the executive added. 

India Inc Eyes Employees Health 

But Deloitte isn’t the only firm which is taking initiatives to take care of the health of its workforce. Last year, Aditya Birla Health Insurance made the move to integrate employees’ health goals into the performance review process, effective in FY25, the Economic Times earlier reported. Philips introduced the Heartprint initiative, a tool to examine employees heart health and prevent potential heart-related issues. 

The increased focus on the health of employees by India Inc has come around a time when the debate regarding the importance of work-life balance following the sudden demise of a 26-year-old Ernst & Young (EY) employee garnered public attention. In a letter addressed to the EY India chairman, Rajiv Memani, the mother of the 26-year-old deceased employee hinted that workload, new environment, and long hours took a toll on her physically, emotionally, and mentally.