In the rapidly evolving landscape of the modern workforce, traditional higher education models are being challenged to adapt to new types of students and the principles of lifelong learning, including the need for continuous professional development. Higher Education Institutions (HEIs) have traditionally used short-learning programs (SLPs) to meet this demand. However, the recent emergence of micro-credentials in the Higher Education landscape lacks a standardised definition, leading to confusion with SLPs. This paper aims to clarify these definitions, propose criteria for distinction, and establish a unique definition for micro-credentials. Statutory bodies may not yet be prepared for undergraduate programs with open curricula and flexible electives, where students construct qualifications through a series of integrated micro-credentials. This open process requires rigorous quality assurance and structural processes. Despite the entrenched nature of current qualification frameworks, international qualification authorities will be cautious in adopting such revolutionary changes. Nevertheless, digital platforms and new technologies offer immense possibilities, making timely adaptation crucial. Micro-credentials reflect a shift towards lifelong learning, essential for career progression and adaptability. For employers, they provide a reliable means of assessing competencies, developed in collaboration with industry stakeholders to ensure relevance. For individuals, they offer a pathway to upskill or reskill without traditional degrees' significant time and financial commitments. This paper will conduct a systematic literature review on the definition and application of micro-credentials, employing thematic analysis to identify key trends and gaps. Preliminary findings suggest that micro-credentials are more flexible and industry-aligned than traditional SLPs. Based on the literature review, we propose a clear and distinctive definition of micro-credentials, emphasising their role in enhancing employability and supporting lifelong learning. The conclusions drawn from this study underscore the need for HEIs and statutory bodies to adopt standardised frameworks and accreditation for micro-credentials to maximise their potential benefits.