Tying workers to one business when they are employed on a zero-hour contract is "rigid and archaic", according to a business chief.
Director general of the Institute of Directors (IoD), Simon Walker, came out in support of Vince Cable's move to ban the use of exclusivity clause but allow businesses to continue to use zero-hours contracts.
The IoD has long campaigned against the exploitation of employees on zero hours contracts. Tying an employee into an exclusivity cause can turn a flexible contract into a rigid and archaic one.
The whole point about the flexibility offered by zero hours contracts is that they allow an individual to capitalise on their own time, labour and energy.
We're pleased that the Government recognises the enormous value that flexible contracts can bring to both employer and employee, but at the same time it's right to ensure that exploitation is stamped out.
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Mr Osborne said he is "not the person to provide the unity my party needs".