Teams folders, restricting access

Question

I work for IT support at a company call Aprolis UK

A user needs help within teams

Here is issue, please can anyone help with this

So the issue we have is people moving into a certain subfolder which we want to restrict the access for them. We have the below structure Grants Purchase Ledger (Head Folder) Depots (Sub folder of the above, for each Depot Manager) Status Folders (Sub for each of the above) Within the status folder we have 1 folder that we want to restrict access to for depots but still allow them to access and edit the other folders, but still allow PL to be able to move into all folders. As far as I am aware we have given access to the Head folder, then access to the relevant department, then the folders.

Answer 1

Dear @Sanjay Dattani,

Welcome to Microsoft Q&A. 

Thank you for explaining the folder structure and the access requirement so clearly. I’ve taken some time to review how this works in Microsoft Teams and SharePoint, as this is a scenario many organizations run into.

In Teams, file access is actually controlled by the underlying SharePoint site. Teams itself doesn’t offer granular control at the folder level, it simply follows whatever permissions are set in SharePoint. That’s why, when users are given access at the main folder or Team level, they can normally move into all subfolders by default.

You can refer to this article, this explains why permissions in Teams are tied to the underlying SharePoint site: Team site permissions and Microsoft 365 Groups

If your goal is to keep the current folder structure and restrict access to just one folder inside the Status folders, the supported approach is to manage that folder as an exception in SharePoint. This means removing inheritance on the restricted folder only and adjusting permissions there, while leaving access to the rest of the folders unchanged. Purchase Ledger (PL) users can continue to have full access across all folders.

From a Teams user’s point of view, that restricted folder will still be visible, but Depot users won’t be able to open it. Unfortunately, hiding folders in Teams based on permissions isn’t supported at the moment, so this behavior is expected.

You can find more details here: Customize permissions for a SharePoint list or library

If you’re open to alternative designs, there are a couple of other supported options worth considering:

• One is to use a Private channel for the restricted content. A private channel has its own SharePoint site, so only PL members would see and access those files, and Depot users would remain in the main Team. This avoids complex folder permissions and is often easier to manage long‑term. You can learn more about this here: IT Admins - Private channels in Microsoft Teams
• Another option is to store the restricted documents in a separate SharePoint location that only PL users can access and then reference it where needed in Teams. This works well when the content needs clearer separation, although it does change the layout from a single folder structure.

I hope this explanation helps clarify why the issue occurs and points you in the right direction. If anything is unclear while applying this, or if something doesn’t behave as expect, please don’t hesitate to reach out again. I’ll do my best to support you however I can.  

Looking forward to hearing back from you with any updates or additional details. 

Warm regards, 

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Answer 2

To restrict access to a specific subfolder within Microsoft Teams while allowing users to access other folders, you can implement the following steps:

1. Set Permissions on the Specific Folder: Navigate to the specific folder that you want to restrict access to. You can manage permissions by selecting the folder, clicking on the three dots (more options), and choosing "Manage access". Here, you can adjust who has access to that folder.
2. Remove Access for Depot Managers: In the access management settings, you can remove the Depot Managers from the list of users who have access to the restricted folder. Ensure that the permissions are set so that only the necessary users (like the Purchase Ledger team) can access this folder.
3. Maintain Access for Other Folders: Ensure that the permissions for the other folders (like the Status folders) are set to allow Depot Managers to access and edit them as needed. You can do this by checking the permissions for each folder and confirming that Depot Managers have the necessary access.
4. Use Security Groups: If you have many users to manage, consider using security groups to simplify the process. You can create a security group for the Depot Managers and another for the Purchase Ledger team, applying permissions based on these groups.
5. Regular Review: Regularly review the access permissions to ensure they are still aligned with your organization's needs and that no unauthorized access is granted.

By following these steps, you can effectively manage folder access within Microsoft Teams to meet your organizational requirements.

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References:

• Governing access in Microsoft 365 groups, Teams, and SharePoint
• Manage access to files and sites