Data Backup Problems

How to Archive Former Employees' Email and Files in Microsoft 365

Tauseeq Magsi Oct 10, 2026 869 views

Question details

An organization needs to retain former employees' email and documents for archival or legal purposes while freeing the associated Microsoft 365 licenses.

How to Archive Former Employees' Email and Files in Microsoft 365

Product: Microsoft 365
Device & OS: not provided
Scenario: Offboarding an employee and preserving their data for legal, compliance, and archival needs before removing their account.
Observed behavior: The administrator seeks a compliant method to safely archive user data (emails, OneDrive, SharePoint) and reassign or remove their Microsoft 365 license without permanent data loss.

Before you start

Before removing any licenses or deleting user accounts, consult your Microsoft 365 administrator or compliance team to ensure all legal, compliance, and retention requirements are reviewed and met.

Solution 1Recommended

Use Microsoft 365 Compliance Features for Data Preservation

Leverage built-in Microsoft 365 features like inactive mailboxes, retention policies, and litigation holds to securely retain former employees' data without consuming an active license.

This is the officially recommended approach by Microsoft for enterprise environments. By converting a mailbox to an inactive mailbox via retention policies, you preserve all data for eDiscovery while freeing up the license for another user.

Access Microsoft Purview

Apply a Retention Policy

Navigate to 'Data lifecycle management' or 'eDiscovery' and apply a retention policy or place the former employee's mailbox on Litigation Hold.

Preserve OneDrive and SharePoint Files

Ensure the user's OneDrive and SharePoint content is preserved according to your organizational policy by granting a manager access to the former user's OneDrive via the Microsoft 365 admin center.

Remove the License

Once the retention hold is active and data preservation is confirmed, go to the Microsoft 365 admin center, locate the user under 'Active users', and remove their Microsoft 365 license.

Use Microsoft 365 Compliance Features for Data Preservation

License Management: An inactive mailbox placed on Litigation Hold does not require an active Microsoft 365 license, allowing you to reassign it to new employees while staying compliant.

Solution 2

Export Mailbox and File Data Manually

If your organization does not use Microsoft 365 retention policies, you can manually export emails and files before deleting the account.

Free Microsoft Office alternative

Looking for a cost-effective alternative to Microsoft 365?

Managing Microsoft 365 licenses and compliance can be expensive for growing businesses. If you need a lightweight, highly compatible alternative for document creation and editing without heavy subscription costs, consider WPS Office.

1. Download WPS Office: Visit the official WPS website and download the free WPS Office suite for your operating system.
2. Install and Launch: Run the installer and launch the application to access the Word, Excel, and PowerPoint alternatives.
3. Open Existing Files: Directly open, edit, and save your existing Microsoft Office documents without worrying about format conversion issues.

Free and lightweight Office suite for everyday business tasksHigh compatibility with Microsoft Word, Excel, and PowerPoint formatsFamiliar user interface for seamless migration and onboardingBuilt-in PDF editing and flexible local or cloud storage integration

Frequently Asked Questions

Can I simply export the former employee's emails to a PST file instead of using compliance features?

While you can export emails to a PST file, doing so may not meet your organization's strict legal or compliance requirements, as PST files can be easily altered or corrupted. Using Microsoft 365 inactive mailboxes or retention policies ensures the data is immutable and legally defensible.

What happens to a user's OneDrive data when their Microsoft 365 license is removed?

By default, a user's OneDrive data is retained for 30 days after their account is deleted. You must take action to preserve, move, or share this data with a manager before the retention period expires to avoid permanent data loss.

Do I have to keep paying for a Microsoft 365 license to retain a former employee's archived data?

No. If you convert the mailbox to an inactive mailbox by placing it on a Litigation Hold or applying a Microsoft 365 retention policy before deleting the user account, the data is preserved for free without requiring an ongoing paid license.

Migration & Recovery