The rules, which were introduced by the last government, come into effect with the Small Business, Enterprise and Employment Act 2015, which was passed today.
Exclusivity clauses were used to prevent employees on zero-hours contracts from working for another employer.
Announcing the plans for the ban in June 2014, former business secretary Vince Cable said the policy was an attempt to crack down on “unscrupulous employers”.
CBI director for employment and skills Neil Carberry welcomed the ban.
He said: “Banning exclusivity clauses in zero-hours contracts is a proportionate response to tackling examples of poor practice.”
However, he cautioned against “further regulation” that might damage the UK’s “flexible labour market”, which he called “an important success story of our economy, benefitting employers and employees alike”.
