The ongoing health crisis has impacted businesses worldwide, drastically reducing production, consumption and distribution of goods and services, leading to an economic downturn. An increasing unemployment rate has led to a surge in the sense of job insecurity among employees. Lack of job security has a direct impact on an employee’s health and work–life balance. This article focusses on the relationship between and impact of job insecurity on work–life balance, that is, to understand the impact of perceived job insecurity on working hours, employee’s health and reduced family time. Using a self-completed questionnaire, data was collected from 413 employees from different sectors like construction, banks, hospitals, hotels, schools, FMCG, telecommunication, etc., in India, which assisted in testing five hypotheses. The study found a positive relationship between job insecurity and health issues and work–life conflict. Additionally, job insecurity was negatively linked with job performance. Regression analysis showed mediating effects of work demand, work time, family time and family demand on the relationship of job insecurity with health issues, job performance and work–life conflict. However, the article also discusses various effective mechanisms to reduce job insecurity and ways to curb its negative impacts on various organizational and personal outcomes.