Sensitivity labels for Microsoft Teams

Sensitivity labels allow Teams admins to regulate access to sensitive organizational content created during collaboration within teams. You can define sensitivity labels and their associated policies in the Security & Compliance Center. These labels and policies are automatically applied to teams in your organization.

What's the difference between sensitivity labels and Teams classification labels?

Sensitivity labels are different from classification labels that require you to create them using PowerShell. Classification labels are text strings that can be associated with a group but don't have any actual policies associated with them. You use classification labels as metadata to manually enforce policies through internal tools and scripts.

On the other hand, sensitivity labels and their policies are automatically enforced end-to-end through a combination of the Groups platform, Security & Compliance Center, and Teams services. Sensitivity labels provide powerful infrastructure support for securing your organization's sensitive data.

To migrate your existing Groups from using classification labels to using sensitivity labels, use the instructions in Azure Active Directory classification and sensitivity labels for Microsoft 365 groups.

Create, manage, and publish sensitivity labels for Teams

For how to enable, create, and publish sensitivity labels for Teams, see Azure Active Directory classification and sensitivity labels for Microsoft 365 groups.


Creating, updating and deleting sensitivity labels require careful sequencing with publishing labels to users. Any deviation in the sequence can result in persistent team creation errors for all users. Therefore, it's critical to do the following when you create and publish labels, modify and delete published labels, and manage team creation errors.

Create and publish labels

When a label is created and published in the Security & Compliance Center, it can take up to 10 minutes for the label to become visible in the teams creation interface. Use the following steps to publish the label for all users in the tenant:

  1. Create the label and publish it for a few select user accounts in the tenant.
  2. When the label is published, wait 10 minutes.
  3. After 10 minutes, try to create a team with the label using one of the user accounts that have access to the label.
  4. If the team successfully created in step 3, then go ahead and publish the label for the remaining users in the tenant.

Modify and delete published labels

Deleting or modifying the label while it's associated with sensitivity policies can result in team creation failures across the tenant. Therefore, before you delete or modify a label, you must first disassociate the label from its associated policies. Use the following steps
to delete or modify a label:

  1. Remove the label from all policies that use the label. Alternatively, you can also delete the policies themselves.
  2. When the label is removed from the policies or the policies themselves are deleted, wait 10 minutes before proceeding further.
  3. After 10 minutes, launch the team creation interface and ensure that the label is no longer visible for any user in the tenant.
  4. Now you can safely delete or modify the label.

Manage team creation errors

If team creation begins to fail at any point during the public preview, you have two options:

  • Ensure that sensitivity labels are not mandatory for any user during team creation.
  • Turn off sensitivity labels using the scripts in Enable this preview.

Note that the EnableMIPLabels setting must be set to false as follows:

$setting["EnableMIPLabels"] = "False"

Using sensitivity labels with Teams

Here are some example scenarios of how you can use sensitivity labels with Teams in your organization.

Privacy setting of teams

You can create a sensitivity label that, when applied during team creation, allows users to create teams with a specific privacy (public or private) setting.

For example, you create a label named “Confidential” in the Security & Compliance Center and you configure Teams so that any team that's created with this label must be a private team. When a user creates a new team and selects the Confidential label, the only privacy option that's available to the user is Private. Other privacy options such as Public and Org-wide are disabled for the user.

Screenshot of Confidential sensitivity label

Similarly, if the user selects General when they create a new team, they can only create public or org-wide teams.

Screenshot of General sensitivity label

When the team is created, the sensitivity label is visible in the upper-right corner of channels in the team.

Screenshot of sensitivity label in team channel

A team owner can change the sensitivity label and the privacy setting of the team at any time by going to the team, and then clicking Edit team.

Screenshot of sensitivity label in team channel

Guest access to teams

You can specify whether a team created with a specific label allows guest access. Teams created with a label that doesn't allow guest access are only available to users in your organization. People outside your organization can't be added to the team.

Sensitivity labels in the Microsoft Teams admin center

You can set sensitivity labels when you create or edit a team in the Microsoft Teams admin center. Sensitivity labels are also visible in team properties and in the Classification column on the Manage teams page of the Microsoft Teams admin center.

Known issues

Support for sensitivity labels in Teams Graph APIs, Powershell cmdlets and templates

Currently, users won't be able to apply sensitivity labels on teams that are created directly through Graph APIs, Powershell cmdlets, and templates.

Support for sensitivity labels in Teams EDU SKUs

Sensitivity labels are currently unsupported for customers using Teams Education SKUs.

Editing sensitivity labels directly on a SharePoint site collection for private channels

Private channels that are created in a team inherit the sensitivity label which was applied on a team. Furthermore, the same label is automatically applied on the SharePoint site collection for the private channel.

If a user directly updates the sensitivity label on a SharePoint site collection for a private channel, that label isn't updated in the Teams client. In this scenario, users will continue to see the sensitivity label applied on a team in the private channel header.

Propagation times for changes applied to sensitivity labels outside the Teams app

Changes made to sensitivity labels outside the Teams app can take up to 24 hours to reflect in the Teams app. This applies to any changes made to enable or disable labels for a tenant, changes to label names, settings, and policies.

Additionally, any changes to a label made directly to a group or SharePoint site collection that backs the team can take up to 24 hours to propagate to the Teams app.