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Sensitivity Labels

Sensitivity labels classify and optionally protect content (emails, documents, meetings) with encryption, watermarks, and access restrictions.

Purview portal → Information protection → Sensitivity labels


Design a label hierarchy that maps to your business classification scheme. A typical structure:

Label Sublabels Description
Public Cleared for public release
Internal General internal content, no special handling
Confidential All Staff Confidential — all employees can view
Confidential Finance Finance team only
Confidential Legal Legal team only
Confidential Management Management only
Highly Confidential Highest sensitivity, strict access control

Tip

Keep the taxonomy simple — users must be able to choose a label without guidance every time. 4–6 labels is usually the right number.


Creating Labels

Purview portal → Information protection → Sensitivity labels → Create a label

Example: Confidential — All Staff

Label settings

Setting Value
Name Confidential - All Staff
Display name Confidential - All Staff
Description for users Confidential content for all company employees. Do not share externally.
Colour Orange
Priority 3 (after Public and Internal)

Scope

  • Items: Files & emails
  • Meetings (if using Teams Premium)
  • (Optional) Groups & sites for SharePoint/Teams container labelling

Protection for files and emails

Setting Value
Encryption Apply encryption
Assign permissions now or let users decide Assign now
User access expires Never
Allow offline access Always
Assign permissions: Add all users in your organisation View, Edit, Reply, Forward, Print, Save
Add any authenticated users Do not add (restrict to org)

Content marking

Setting Value
Add a header CONFIDENTIAL (font size 11pt, red, centred)
Add a footer CONFIDENTIAL - {Company Name}
Add a watermark CONFIDENTIAL (diagonal, grey, font size 24)

Auto-labelling (requires E5 Compliance)

Configure if you want the label applied automatically when sensitive content is detected.


Publishing Labels via Label Policy

Purview portal → Information protection → Label policies → Publish label

Setting Value
Labels to publish Select all your labels
Publish to users and groups All users (or a pilot group)
Default label for documents Internal
Default label for emails None (or Internal)
Default label for meetings None
Require users to justify removing a label Yes
Require users to apply a label to their email No (recommended to start — add later)
Provide users with a link to a custom help page Optional — link to intranet policy page

Label policy propagation

After publishing, labels appear in Office apps within 24 hours. Users must restart Office apps to see new labels.


Auto-Labelling Policies

Apply labels automatically without user interaction based on content detected in Exchange, SharePoint, and OneDrive.

Purview portal → Information protection → Auto-labelling policies → Create auto-labelling policy

Example: Auto-label content containing Australian TFN

Setting Value
Name Auto-label — Australian Tax File Number
Label to apply Confidential - Finance
Locations Exchange, SharePoint, OneDrive
Rules: condition Content contains sensitive info type: Australia Tax File Number (confidence: High)
Run policy in simulation mode Yes — run for 7 days, review, then enforce

SharePoint / Teams Container Labels

Apply labels to SharePoint sites and Teams to control external sharing, guest access, and privacy settings:

Label applied to site Privacy External sharing Guest access
Public Public Enabled Allowed
Internal Private Disabled Blocked
Confidential Private Disabled Blocked
Highly Confidential Private Disabled Blocked

Configure in the label's Groups & sites scope settings.


Useful PowerShell

Connect-IPPSSession -UserPrincipalName admin@domain.com

# List all sensitivity labels
Get-Label | Select-Object DisplayName, Priority, IsActive | Sort-Object Priority

# List label policies
Get-LabelPolicy | Select-Object Name, Labels, ExchangeLocation

# Check what label is applied to a document (requires PnP PowerShell)
# Install-Module PnP.PowerShell
Connect-PnPOnline -Url https://tenant.sharepoint.com/sites/sitename -Interactive
Get-PnPFile -Url "/sites/sitename/Shared Documents/document.docx" -AsListItem |
    Select-Object @{N="SensitivityLabel";E={$_["_vti_ItemDeclaredRecord"]}}