Security & Good Practice
Understanding Sensitivity Labels
This guide explains sensitivity labels — the classification tags you can apply to documents and emails in Microsoft 365 — and how they help protect sensitive information.
Time needed
10 minutes to read
Platform
Microsoft 365
Guide steps
4 clear sections
Before you begin
Sensitivity labels must be enabled and configured by your IT administrator. If you do not see any label options, they may not be deployed in your organisation yet — contact the helpdesk.
Follow along
Step-by-step guide
Understand what sensitivity labels are
- Instruction 1: Sensitivity labels are classification tags that tell Microsoft 365 — and the people you share files with — how sensitive a document or email is.
- Instruction 2: Labels are defined by your IT team and reflect your organisation's data handling policies.
- Instruction 3: Common label tiers (names will vary by organisation): Public (safe to share externally), Internal Only (for staff use, not for external sharing), Confidential (sensitive — restricted sharing), Highly Confidential (maximum restriction, often with encryption).
- Instruction 4: A label is not just a tag — it can also enforce protection automatically. For example, a 'Confidential' label may add encryption so only authorised users can open the file, even if someone tries to forward it.
Action map
Understand what sensitivity labels are
- 01
Sensitivity labels are classification tags that tell Microsoft 365 — and the people you…
- 02
Labels are defined by your IT team and reflect your organisation's data handling policies.
- 03
Common label tiers (names will vary by organisation): Public (safe to share externally),…
Visual guide
Use this visual action map alongside the written instructions above.
Open Microsoft security guidance for Understanding Sensitivity LabelsApply a sensitivity label to a document
- Instruction 1: Open a Word, Excel, or PowerPoint file stored in OneDrive or SharePoint.
- Instruction 2: Click Sensitivity in the toolbar or ribbon (it looks like a padlock icon and may appear between Home and Insert tabs).
- Instruction 3: A dropdown shows the available labels for your organisation.
- Instruction 4: Click the label that matches the document's content. A coloured banner or watermark may appear on the document to indicate its classification.
- Instruction 5: Save the document. The label is applied and any protection rules associated with it take effect.
Apply a sensitivity label to an email
- Instruction 1: When composing a new email in Outlook desktop or Outlook on the web, look for a Sensitivity or Encrypt button in the ribbon or toolbar.
- Instruction 2: Click it and choose the appropriate label before sending.
- Instruction 3: If an email contains confidential information (e.g. personal data, financial details, passwords), apply at minimum a 'Confidential' or 'Internal' label.
Know when to use which label
- Instruction 1: Public: press releases, marketing content, general information — fine to share externally.
- Instruction 2: Internal Only: internal reports, team documents, general business communications — do not share outside the organisation.
- Instruction 3: Confidential: documents containing personal data, commercially sensitive information, contracts, or financial data.
- Instruction 4: Highly Confidential: legal privilege, HR records, cybersecurity documents, board materials.
- Instruction 5: If in doubt, choose a higher label rather than a lower one. Contact the helpdesk if you need guidance on classifying a specific document.
Quick fixes
Troubleshooting
I cannot open a document labelled as Confidential
The document may be encrypted and restricted to specific users. Contact the sender or document owner to request access, or ask the helpdesk to grant you permission.
I accidentally applied the wrong label
Open the document, click Sensitivity, and choose the correct label. Labels can be changed, but downgrading a label (e.g. from Confidential to Internal) may require a justification depending on your organisation's policy.
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