Understanding Sensitivity Labels

Sensitivity labels are applied to documents and emails to control who can access them and how they can be shared. This article explains what the labels mean and how to apply them across the different Microsoft 365 apps you use day to day.

What the labels mean

Your organisation uses a set of labels that run from least to most sensitive. The exact names may differ slightly, but they work like this:

If you're unsure which label to apply, go with the higher one. It's straightforward to lower a label later if needed - recovering from a mislabelled sensitive document is considerably harder.

Applying a label

Word, Excel, and PowerPoint

On Windows or Mac:

1. Open the document.
2. In the Home tab, click the Sensitivity button in the ribbon. It may show the current label name or a padlock icon.
3. Select the appropriate label from the dropdown.
4. Save the document. The label is now embedded in the file.

There may also be a coloured bar near the top of the document showing the current label. You can click it to change the label from there too.

In the browser (Office on the web):

1. Open the document in Word, Excel, or PowerPoint online.
2. Click Sensitivity in the toolbar or under the Home menu.
3. Select the appropriate label.

Outlook - labelling an email

Outlook on Windows:

1. Open a new email, reply, or forward.
2. In the ribbon, click the Sensitivity button - it appears in either the Message tab or the Options tab depending on your version of Outlook.
3. Select the label before sending.

Outlook on Mac:

1. Open a new email.
2. Look for the Sensitivity button in the compose toolbar or under the Options tab in the ribbon.
3. Select the appropriate label.

Outlook on the web:

1. Start a new email.
2. Click the three-dot menu (...) at the bottom of the compose window.
3. Select Set sensitivity and choose your label.

Outlook on iOS or Android:

1. Start a new email.
2. Tap the three-dot menu at the top right of the compose screen.
3. Tap Sensitivity or Change sensitivity and select the appropriate label.

SharePoint and OneDrive

If a SharePoint site or OneDrive folder has a label applied to it, files you save there will automatically inherit that label. You don't need to do anything.

If a specific file needs a higher label than the one on the site:

1. Open the file in Word, Excel, or PowerPoint.
2. Apply the label manually using the steps above.
3. Save the file. The file-level label takes precedence over the site label.

Teams

For individual files shared in Teams, open the file - it will open in the Office app or in the browser and apply the label using the Word, Excel, or PowerPoint steps above.

For meeting invites, the label is set in Outlook using the steps above.

Policy tips and warnings

When you try to share or send something, you may see a yellow or red bar appear. This is a policy tip.

Yellow warning: You can proceed, but you'll be asked to type a brief justification first. Enter a reason and confirm to continue. These justifications are logged.

Red block: The action isn't permitted for that label and can't be overridden. If you think the block is wrong, raise a support ticket with us and we'll look into it.

If you're regularly hitting the same warning for a legitimate reason, let us know - it may mean a policy needs adjusting rather than you having to justify it every time.

Changing or removing a label

To change a label: Click the Sensitivity button and select a different one. If you're moving to a lower sensitivity level, for example, from Confidential to Internal - you'll be prompted to provide a justification before the change is saved.

To remove a label entirely: Most users can't fully remove a label, only change it. If a label has been applied incorrectly and needs to be removed, raise a support ticket.

Can't open a labelled file?

If someone has sent you an encrypted file and it won't open, it's usually one of the following:

• You're not in the permissions list. Encrypted labels only grant access to specific people. Ask the sender to confirm you've been added, or raise a ticket and we can check.
• You're not signed in with your work account. Encrypted files require you to be signed into the Office app with your work email address. Check the account shown in the top-right corner of the app.
• You're using an older or unsupported app. Some third-party or older apps can't open encrypted files. Try opening it in the latest version of Word or Excel, or in the browser.

If none of the above helps, raise a support ticket and include the filename and who sent it.

Frequently asked questions

The Sensitivity button isn't showing in my ribbon. Try signing out of the Office app and signing back in. If it's still not there after a few hours, raise a support ticket and we'll check whether the label policy has been published to your account.

I applied the wrong label by mistake. Can I fix it? Yes - click the Sensitivity button and select the correct one. If you're moving to a lower label you'll need to provide a justification, but correcting a mistake is fine.

A file is showing a label I didn't apply. New documents may have a default label applied automatically. Some organisations also have auto-labelling enabled, which scans content and applies a label based on what it finds - a document containing a National Insurance number, for example, may be automatically labelled Confidential. This is expected behaviour.

Can someone outside the organisation open a file I've sent them? It depends on the label. Public and Internal files (which aren't encrypted) open normally for anyone. For encrypted labels like Confidential, the recipient needs to be in the permissions list. If you regularly need to share encrypted files with a specific external contact, raise a ticket and we can look at getting them added.

Does applying a label change the file? The label is embedded in the file as metadata, and any content markings, watermarks, headers, footers are added to the document. The content itself is unchanged. Encrypted files can only be opened by people in the permissions list, but once open they behave like any normal document.

Not sure which label to use, or running into an issue? Raise a support ticket and we'll take a look.