Compliance Problems

How Microsoft Teams Retention Policies Work for Users with Mixed Licenses

Huma Ashraf Ch Oct 8, 2026 868 views

Question details

Understand how chat retention policies in Microsoft Teams are enforced when chat participants hold different Microsoft 365 subscription licenses.

How Microsoft Teams Retention Policies Work for Mixed License Users

Product: Microsoft Teams
Device & OS: not provided
Scenario: An organization with mixed Microsoft 365 licenses (e.g., E5 and Business Basic) needs to verify how Teams message retention and deletion policies apply to 1:1 or group chats.
Observed behavior: Clarity is needed on whether messages are deleted for all participants regardless of their individual license, and what minimum licensing is legally and technically required for the organization to apply these policies.

Before you start

Ensure you have access to the Microsoft Purview compliance portal with global administrator or compliance administrator privileges to review your organization's licensing and current retention rules.

Solution 1Recommended

Reviewing Retention Rules and Licensing Requirements for Mixed User Chats

Understand the technical behavior of message deletion in mixed-license chats and verify your organization's compliance with Microsoft licensing prerequisites.

From a technical standpoint, retention policies apply to messages in the applicable Teams chat regardless of whether the participants have E5 or Basic licenses. When the configured retention period expires, messages and replies are deleted for all participants in that specific chat.

However, applying and enforcing these policies across an organization requires appropriate underlying licenses. Microsoft dictates that users benefiting from advanced compliance features must have a qualifying license, and Basic licenses typically do not meet this standard.

Verify your organization's Microsoft 365 licensing

Check your tenant's subscription levels. Microsoft Teams retention policies require appropriate licensing, such as Microsoft 365 E3, A3, G3, or E5. Basic licenses do not meet the minimum requirements for configuring advanced retention policies.

Assess chat participant impact

If an E5 user chats with a Basic-license user, the policy applied to the chat will technically delete messages for both users once the retention period (e.g., five days) is reached. Understand that the policy targets the chat location, affecting all participants.

Audit policies in Microsoft Purview

Navigate to the Microsoft Purview compliance portal, select 'Data lifecycle management', and click on 'Microsoft 365'. Review your active Teams retention policies to ensure they are only targeted at users who hold the appropriate qualifying licenses.

Reviewing Retention Rules and Licensing Requirements for Mixed User Chats

Licensing Compliance Warning: While the technical deletion of messages happens for all users in the chat, lacking the required licenses (like E3/E5) for all users subjected to the policy may violate Microsoft's licensing agreements. Always consult your Microsoft account representative regarding mixed licensing compliance.

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Frequently Asked Questions

If an E5 user chats with a Basic-license user, are both users' messages deleted?

Yes. From a technical execution standpoint, if a retention policy is configured to delete messages, the messages and replies in that specific chat are deleted for all participants when the retention period ends, regardless of whether a participant holds an E5 or Basic license.

Can I configure Teams retention policies if my organization only has Microsoft 365 Business Basic licenses?

No. Microsoft Teams retention policies require appropriate advanced licensing, such as Microsoft 365 E3, A3, G3, or E5. Basic licenses do not meet the minimum feature requirements.

Where can administrators manage Microsoft Teams retention policies?

Administrators can create and manage Teams retention policies in the Microsoft Purview compliance portal. Look under the 'Data lifecycle management' or 'Records management' sections depending on your specific compliance setup.

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