The Business Secretary has hit out at "unscrupulous employers" who abuse the exclusivity clause in zero-hour contracts, tying workers to one company.
Vince Cable announced a clampdown on employers who take on staff with no promise of hours or benefits, and insist they work for no one else.
Despite calls from unions to ban zero-hours contracts outright, Mr Cable said the controversial practice had a place in the labour market - offering working opportunities especially for students and older people.
However, an estimated 125,000 zero-hours workers will benefit from the exclusivity clause ban as they can now look for additional work without fear of losing their current employment, the Business Department said.
A recent report by the Office for National Statistics estimated that employers held 1.4 million contracts that did not guarantee a minimum number of hours.
More top news
All eyes are on the stars as they arrive on the red carpet for the 89th Oscars. But who won in the fashion stakes?
Tributes have been paid to the Labour MP for Manchester Gorton and Father of The House of Commons who has died aged 86.
A very unsettled start to the new week with heavy, thundery, occasionally wintry showers spreading in from the west throughout the day.