How to Manage and Transfer Your Microsoft 365 Licences When an Employee Leaves Your Brisbane Business

Summary

This guide helps you troubleshoot and resolve: How to Manage and Transfer Your Microsoft 365 Licences When an Employee Leaves Your Brisbane Business. Follow the steps below to fix the issue.

Common Causes

When an employee leaves your business, managing their Microsoft 365 account is a critical security step. Failing to remove access can leave your organisation vulnerable to data breaches, while keeping unused licences active results in unnecessary monthly costs. This guide walks you through securing a departing employee's account and transferring their licence to a replacement.

Quick Fix Steps

1. Block the departing employee's sign-in access in the Microsoft 365 admin centre immediately.
2. Reset the departing employee's password.
3. Remove the user from all Microsoft 365 groups, Teams, and SharePoint sites.
4. Remove the Microsoft 365 licence from the departing employee.
5. Assign the available licence to a new or existing staff member.
6. Transfer ownership of OneDrive and SharePoint files and grant mailbox access to a manager.

Detailed Instructions

Step 1: Sign in to the Microsoft 365 Admin Centre

1. Open your web browser and navigate to https://admin.microsoft.com.
2. Sign in using an account with Global Administrator or User Administrator privileges.
3. From the left-hand navigation menu, select Users, then click Active users.

Step 2: Secure the Departing Employee's Account

1. Search for the employee's name or email address in the user list.
2. Click on the user's name to open their profile pane.
3. Select the Account tab.
4. Under Sign-in status, select Block the user from signing in and click Save changes.
5. To reset their password, select Reset password, choose Automatically create a password, and ensure the option to make the user change their password is unchecked (since they are leaving).
6. Remove the user from all Microsoft 365 groups, Teams, and SharePoint sites to ensure complete access revocation.

Blocking sign-in is more secure than simply deleting the account immediately, as it preserves the mailbox and OneDrive data for future retrieval.

Step 3: Transfer Data Ownership

1. While still in the user's profile, select the OneDrive tab.
2. Under Get access to files, click Provide access.
3. Enter the email address of the manager or colleague who needs access to the departing employee's files.
4. Microsoft will grant the designated person access to the OneDrive for a set period.
5. Select the Mail tab and configure email forwarding or grant Full Access permissions to a manager so client emails are not missed.

Do not delete the user account immediately. Keep the account blocked but active for at least 30 days to ensure no critical emails or files are missed.

Step 4: Remove and Reassign the Licence

1. In the user's profile pane, select the Licences and apps tab.
2. Expand the list of assigned licences.
3. Uncheck the box next to the Microsoft 365 licence (e.g., Microsoft 365 Business Standard).
4. Click Save changes. The licence is now available for reassignment.
5. Return to the Active users list and select the new employee (or create a new user if necessary).
6. Open their profile, go to Licences and apps, check the box for the available licence, and click Save changes.

Troubleshooting

Licence Not Available for Assignment

If you cannot assign the licence, ensure you have fully saved the changes after removing it from the previous user. There may be a short delay while Microsoft processes the licence release. Refresh the admin centre page and try again.

Cannot Access OneDrive Files

If the manager cannot access the files, verify that the Provide access step was completed before the user was deleted. If the account has already been deleted, you may need to restore the user within 30 days to recover the data.

Email Bounce-backs for Clients

To prevent external emails from bouncing, set up an automatic reply on the departing employee's mailbox or configure email forwarding to a current team member via the Mail tab in their user profile.

If you encounter any issues during this process, you can Open a Ticket with our Brisbane support team.

Still Having Issues?