Introduction: A recent landmark verdict achieved through a nine-month mediation process under the International Labour Organisation (ILO) has significantly changed the government's racial policy in South Africa. This breakthrough, driven by civil society organisations such as Solidarity, marks a significant shift in the implementation of racial legislation since the inception of the Employment Equality Act. While the battle is not over, let's explore how the verdict will impact small businesses in the country, considering the newfound flexibility in legislation and the implications for hiring practices and workforce composition. Redefining the Use of Race: The crucial outcome of the ILO-mediated process is eliminating demographic diversity as the sole criterion for determining workforce composition. Instead, the government has conceded to pressure and adjusted the regulations for greater flexibility. This represents a significant departure from the rigid application of race-bas