THE Government says it will clamp down on abuses of zero-hours contracts by allowing people to work for more than one employer.
Business Secretary Vince Cable said "unscrupulous" employers had been abusing the flexibility offered by the contracts.
The contracts mean workers don't know if they have work from one week to the next.
Unions and campaign groups have been pressing for zero-hours contracts to be banned, but Dr Cable said they had a place in the labour market by offering working opportunities for students and older people.
However, he has announced plans to ban exclusivity clauses, which tie people to one employer.
He said: "It has become clear some unscrupulous employers abuse the flexibility that these contracts offer to the detriment of their workers.
"We are legislating to clamp down on abuses to ensure people get a fair deal.
"Last December, I launched a consultation into this issue.
"Following overwhelming evidence we are now banning the use of exclusivity in zero-hours contracts and committing to increase the availability of information for employees on these contracts.
"We will also work with unions and business to develop a best practice code of conduct aimed at employers who wish to use zero-hours contracts as part of their workforce."
He added the ban will benefit 125,000 zero-hours contract workers estimated to be tied to an exclusivity clause and will allow workers to look for additional work to increase their income.
The Government received more than 36,000 responses to its consultation, with 83 per cent in favour of banning exclusivity clauses.
Mr Cable also announced a consultation on how to stop rogue employers evading the ban through measures such as offering one-hour fixed contracts.
Business representatives and unions will be asked to draw up a code of practice on the fair use of zero-hours contracts.
A report by the Office for National Statistics estimated that employers held 1.4 million contracts that did not guarantee a minimum number of hours.
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