How to Apply Retention Tags to Non-Default Folders in Exchange Online

In Exchange Online, part of Microsoft 365, retention policies play a critical role in ensuring compliance with legal, regulatory, and organizational requirements. Retention tags are used to define how long items in a mailbox should be retained and what happens to them after that period. While applying retention tags to default folders such as Inbox, Sent Items, and Deleted Items is straightforward, many users face challenges when trying to apply retention tags to non-default folders.

In this article, we will guide you through the process of applying retention tags to non-default folders in Exchange Online, explain the key concepts behind retention policies, and provide troubleshooting steps in case issues arise.

What Are Retention Tags and Policies?

Before diving into the specifics of applying retention tags to non-default folders, let’s first understand what retention tags and policies are.

• Retention Tags: A retention tag is a label that is applied to an email or item to dictate how long it should be retained and what action should be taken once the retention period expires. The action could be archiving, deleting, or moving items.
• Retention Policies: A retention policy is a collection of retention tags that can be applied to mailboxes. These policies help organizations ensure compliance with legal and regulatory standards by automating the management of email lifecycle.

Exchange Online provides two types of retention tags:

1. Default Retention Tags – Automatically applied to standard folders like Inbox, Sent Items, and Deleted Items.
2. Custom Retention Tags – These can be applied to custom folders or other non-default folders.

Applying Retention Tags to Non-Default Folders in Exchange Online

By default, retention tags are applied to default system folders. However, you might want to apply a retention tag to non-default folders (e.g., project-specific folders, shared folders, or folders that users create themselves). To do so, you need to use a combination of PowerShell commands and the Exchange Admin Center (EAC) in Exchange Online. Here’s a step-by-step guide on how to apply retention tags to non-default folders.

Step 1: Define Retention Tags and Policies

Creating a Retention Tag

1. Login to Microsoft 365 Admin Center:
2. Navigate to Retention:
3. Create a New Retention Tag:

Create a Retention Policy

1. Navigate to Retention Policies in the Compliance Center.
2. Click on + Create retention policy.
3. Name your policy (e.g., “Project Folder Retention Policy”) and select the retention tags you want to apply.
4. Under Choose the locations to apply the policy, select Exchange email and choose the mailboxes or folders (including non-default folders) to which the retention policy will apply.

Step 2: Use PowerShell to Apply Retention Tags to Non-Default Folders

Once the retention tags are created, you can apply them to non-default folders using PowerShell. Exchange Online PowerShell provides a convenient way to manage mailbox retention tags on non-default folders that are not handled directly through the Exchange Admin Center (EAC).

Connect to Exchange Online PowerShell

First, you need to connect to Exchange Online using PowerShell. Follow these steps to authenticate:

1. Open Windows PowerShell as an administrator.
2. Run the following command to install the required module (if you haven't already):
3. Import the Exchange Online module:
4. Connect to Exchange Online:

List Available Folders in a Mailbox

To apply retention tags to non-default folders, you need to know the names of the folders in the mailbox. Use the following command to list the folders:

Get-MailboxFolder -Mailbox <user mailbox>
        

This will return a list of all folders in the user’s mailbox.

Apply a Retention Tag to a Non-Default Folder

Once you have identified the folder where the retention tag should be applied, you can use the following command to apply the retention tag:

Set-MailboxFolder -Identity "<user mailbox>:\<folder name>" -RetentionPolicy "<policy name>"
        

For example, if you want to apply the “Project Retention” policy to a folder named “Projects” in a user’s mailbox, use the following command:

Set-MailboxFolder -Identity "[email protected]:\Projects" -RetentionPolicy "Project Retention Policy"
        

This command assigns the specified retention policy to the “Projects” folder.

Step 3: Verify the Retention Tag Application

After applying the retention tag to the non-default folder, it’s important to verify that the tag has been applied successfully. To do this:

1. Check Folder Properties: In the Exchange Admin Center (EAC) or PowerShell, check the folder properties to confirm that the retention tag has been applied.
2. Check via Outlook: If you are the user or an admin, check the folder settings in Outlook Web App (OWA) or the Outlook desktop client to see if the retention policy is visible and functional.

Step 4: Troubleshooting

If the retention tag does not appear to apply correctly or isn’t functioning as expected, here are a few troubleshooting steps:

1. Permissions: Ensure that you have the necessary administrative permissions to apply retention tags to non-default folders.
2. Mailbox Configuration: Verify that the mailbox is correctly configured to allow retention policies, and ensure there are no conflicting policies.
3. Sync Issues: Sometimes changes may take time to sync. If using Outlook or other client applications, allow up to 24 hours for the policy to reflect across all devices.
4. PowerShell Errors: If you encounter errors in PowerShell, carefully review the error messages. The error may indicate incorrect syntax or invalid folder names.
5. Policy Conflicts: Ensure that there are no conflicting retention policies applied to the same mailbox or folder. Conflicts can prevent the correct policy from being applied.

Conclusion

Applying retention tags to non-default folders in Exchange Online is an essential task for organizations to maintain compliance and manage mailbox data effectively. While the process is not always straightforward, using a combination of the Exchange Admin Center (EAC) and PowerShell provides the flexibility needed to target specific folders and apply retention policies accordingly.

By following the steps outlined in this article, you can ensure that your organization’s retention requirements are met and that non-default folders are properly managed. If issues arise, the troubleshooting tips will help you resolve them efficiently and ensure smooth operation of your Exchange Online environment.