Hi @J-3804
Retention policy works with Retention tags.
Once you create a new retention policy, you may also need to create and link retention tags to it to have the tags applied to folders or items in the mailbox.
Below are the three types of retention tags:
1.Default policy tag (DPT) : Automatically applied to entire mailbox
A DPT applies to untagged items, which are mailbox items that don't have a retention tag applied directly or by inheritance from the folder.
2.Retention policy tag (RPT) : Automatically applied to a default folder
Default folders are folders created automatically in all mailboxes, for example: Inbox, Deleted Items, and Sent Items.
3.Personal tag : Manually applied to items and folders
Users can automate tagging by using Inbox rules to either move a message to a folder that has a particular tag or to apply a personal tag to the message.
Retention tags have the following actions:
- Move to Archive
- Delete and Allow Recovery
- Permanently Delete
- Mark as Past Retention Limit
A retention policy can have the following retention tags:
- Default policy tag (DPT)
- One DPT with the Move to Archive action
- One DPT with the Delete and Allow Recovery or Permanently Delete actions
- One DPT for voice mail messages with the Delete and Allow Recovery or Permanently Delete action
- One RPT for each supported default folder
- Any number of personal tags
For example, if you create a new retention policy and only link a Default policy tag (delete items which are 7 years old) to it, then apply this retention policy to a mailbox,
all items in the mailbox
(not only the items in the Deleted Items folder) which reach 7 years old would be deleted.
Unless the items have a Retention policy tag or a Personal tag applied.
(In other words, Default policy tag only applies to items that don't have other retention tags applied)
If you link a Retention policy tag which works on Deleted Items folder (delete items which are 7 years old) to the retention policy and apply the policy to a mailbox,
only items in the Deleted Items folder
which reach 7 years old would be deleted. (items in other folders wouldn't be affected, however, untagged items would be affected by the retention settings of the Default policy tag)
Whether the items can be recovered depends on the action of the retention tag (Delete and Allow Recovery or Permanently Delete).
If recovery is allowed, by default the items would be kept for 14 days before getting permanently deleted.
For more detailed information on this topic, please refer to this link:
Retention tags and retention policies in Exchange Online
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