Microsoft Purview Information Protection: Label Policy Inheritance

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Label Policy Inheritance actually started rolling out late January 2025, and should soon be rolled out globally. Microsoft Purview Information Protection will now support label policy settings to apply inheritance to files shared in Microsoft Teams chat or meetings. This update is designed to enhance security and streamline the management of sensitive information within Microsoft Teams. This feature is relevant for tenants with Microsoft 365 E5 and Teams Premium licenses (see licence requirements) and will be available across Teams on the web, Windows desktop, Mac desktop, and iOS/Android platforms.

Feature Description: Admins will be able to configure label inheritance settings for Teams meetings directly from the Purview portal. This includes:

  • Automatic Label Inheritance: When a file with a higher priority label is shared in a meeting chat or by the presenter, all participants will receive a new meeting invite that inherits the higher priority label.
  • Label Recommendation: The meeting organizer will receive a notification recommending an upgrade to the meeting’s sensitivity to match the shared file.

Triggering prerequisites: To trigger label inheritance, the following conditions must be met:

  • The sensitivity label on the shared file must have the Meeting scope.
  • The label must have been published by the meeting organizer.
  • The label must have a higher priority than the current meeting sensitivity label.
  • The meeting organizer must meet the license requirements.
  • An inheritance policy (automatic or recommendation) must be enabled by the meeting organizer.

License Requirements: To utilize these label policy inheritance features, specific licensing is required:

  • Microsoft Teams: A Teams Premium license is necessary to configure and apply sensitivity labels to Teams meetings.
  • Microsoft Purview Information Protection: Users must have a Microsoft 365 E5 license to automatically apply sensitivity labels. Alternatively, a combination of Microsoft 365 E3 and Microsoft 365 E5 Compliance subscriptions can be used.


Admin Controls: Admins can manage these settings through the Purview Information Protection portal, ensuring that sensitive information is appropriately labeled and protected during Teams meetings.

This update will be rolled out automatically, so no immediate action is required from admins. However, it is advisable to review your current configuration to understand the potential impact on your organization. Additionally, notifying users about this change and updating relevant documentation will help ensure a smooth transition.

Configuring Label Inheritance: To configure label inheritance settings, navigate to the Purview portal and go to Information Protection. Within this section, select Label Policies and configure the inheritance settings according to your organization’s requirements. This will allow you to set up automatic label inheritance or label recommendations for Teams meetings.

Enabling Automatic Labels: Enabling automatic labels involves accessing the Purview portal and selecting the option to enable automatic labels for Teams meetings. Ensure that the sensitivity labels are correctly prioritized to reflect the hierarchy of labels within your organization.

Rollout Timeline: 

The rollout will began with a public preview in late January 2025 and was expected to be completed by mid-February 2025. Following this, the general availability worldwide started late February 2025 and is anticipated to be completed by late April 2025.

For more detailed information, you can refer to the Microsoft 365 Roadmap ID 467247.