Microsoft 365 E3 Retention Labels and SharePoint Policies Explained
Question details
Clarify whether Microsoft 365 E3 licenses support applying default retention labels at the folder or document-library level, and if basic retention policies can be targeted to specific SharePoint sites.
- Product
- Microsoft 365 SharePoint
- Device & OS
- not provided
- Scenario
- Administrators need to enforce data compliance rules and retention policies across SharePoint document libraries using an E3 license.
- Observed behavior
- E3 allows basic retention policies and manual labeling, but users are unable to configure automatic default retention labels for folders and libraries, a feature typically restricted to E5.
Ensure you have global administrator or compliance administrator permissions in the Microsoft Purview compliance portal before attempting to configure retention policies.
Configure Basic SharePoint Retention Policies in E3
Utilize the included Microsoft 365 E3 compliance features to apply basic retention policies to specific SharePoint sites and allow users to manually label documents.
Microsoft 365 E3 licenses provide essential compliance functionalities. While you cannot set default labels that automatically apply to an entire folder or document library, you can still publish retention policies directed at specific SharePoint sites and empower end-users to manually apply non-record labels.
Log in to the Microsoft Purview compliance portal. Navigate to Data lifecycle management, select Microsoft 365, and click on 'Retention policies' to create a new policy.
During the policy configuration, select 'Specific locations' and toggle on 'SharePoint sites'. Use the 'Edit' or 'Choose sites' option to paste the exact URLs of the SharePoint sites you want to target.
Under the 'Labels' section, create basic, non-record retention labels and publish them to your SharePoint locations. Inform your end-users that they must manually select a document, open the details pane, and apply the label.
Upgrade to Microsoft 365 E5 for Automatic Default Labels
If your organization requires automated retention labels at the library or folder level without manual user intervention, an upgrade to E5 or a compliance add-on is necessary.
Manage Your Documents with WPS Office
While Microsoft 365 handles your enterprise-level compliance and SharePoint retention needs, WPS Office provides a free, lightweight, and highly compatible desktop suite for your daily document creation and editing.
- 1. Download the installer: Visit the official WPS Office website and download the free installer for your operating system.
- 2. Install the application: Run the setup file and follow the on-screen instructions to complete the fast, lightweight installation.
- 3. Open and edit seamlessly: Launch WPS Office to instantly open, edit, and save your existing Microsoft Office documents without any formatting loss.
Frequently Asked Questions
Does SharePoint Plan 2 include automatic retention labels?
No. Although Microsoft 365 E3 includes SharePoint Plan 2, the ability to apply default retention labels automatically at the document library or folder level is an advanced compliance feature that requires Microsoft 365 E5 or an equivalent compliance add-on.
Can Microsoft 365 E3 users apply retention labels in SharePoint?
Yes, users with a Microsoft 365 E3 license can manually apply non-record retention labels to individual files and documents within SharePoint and OneDrive.
How do I target retention policies to specific SharePoint sites only?
In the Microsoft Purview compliance portal, when creating or editing a retention policy, choose 'Specific locations'. You can then enable the 'SharePoint sites' location and explicitly include or exclude specific site URLs.
