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
A second Scottish independence referendum is "even more likely" after Theresa May's Brexit speech, Nicola Sturgeon has said.
At least 100 people are feared dead in the bombing including soldiers and Nigerians working for Doctors Without Borders.
Each broadcast automatically disappears as soon as a recording finishes and users have the option to disable comments.