Mr Cable, who made the announcement during his speech to the Liberal Democrats’ annual conference in Glasgow, said: “One of the most striking features of our recession has been the high levels of employment that our workforce has maintained during some very trying times. Employers were resourceful in the jobs they continued to offer and employees remained flexible in the work patterns and pay they agreed to.
“That was the right thing to do at the time to keep Britain working.
“However now the economy is firmly on the road to recovery, it is important that the fruits of the recovery are shared by all.
“Some types of contracts which offer fewer employment rights, and which were never designed to be widely used, have become much more commonplace.
“As the economy recovers, it is right to explore giving a silent minority of workers the security and rights enjoyed by the majority of employees.
“Workers should not be finding out that they are not protected by law once they get to employment tribunal.
“We need a system that is fair, simple and transparent - an environment where businesses feel more confident knowing what type of contracts to hire staff on and where individuals know their rights and have the security they deserve.”