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
Uplifting messages greeted commuters on the London Underground a day after the terror attack in Westminster.
Faith leaders from across London say religious communities will "stand together" in the wake of the Westminster terror attack.
Pc Keith Palmer was among the three people killed yesterday in the Westminster terror attack.