Teams – Enable/Apply Sensitivity Labels

In a O365 tenant I manage, I had rolled out the Azure Information Protection labels from earlier. The recent requirement was to make sure the sensitivity labels will apply to group across services like Outlook, Microsoft Teams and SharePoint online.

When I checked the sensitivity label, I noticed the ‘Groups and sites’ option greyed out and which lead me to research a bit into this and write my findings below,

Groups & sites greyed out

Enable sensitivity labels for containers in Azure AD

Sensitivity labeling for containers i.e., groups and sites, should enabled before we can configure the settings in the sensitivity labeling wizard. Else, it will be greyed out as in screenshot above.

To determine current group settings for your Azure AD organization, use the below cmdlet. If no group settings are defined, this cmdlet won’t return any output value.

Get-AzureADDirectorySetting | fl

In my scenario, I have only one setting and it was easier to see it. But your organization might have more than one setting and in that case, you can use this below cmdlet to search and determine the setting.

Get-AzureADDirectorySetting -Id (Get-AzureADDirectorySetting | where -Property DisplayName -Value "Group.Unified" -EQ).id
EnableMIPLabels = false

Below, I’m storing the value of the cmdlet’s output into the $Setting variable. And once stored, I’m setting ‘True’ as the value for ‘EnableMIPLabels’. I’m listing out both methods, what I used and what you can potentially use. The second method is much easier.

$Setting = Get-AzureADDirectorySetting -Id <Group.Unified policy's Id from your tenant>
$Setting["EnableMIPLabels"] = "True"
Set-AzureADDirectorySetting -Id $Setting.Id -DirectorySetting $Setting

or you can use this,

$Setting = Get-AzureADDirectorySetting -Id (Get-AzureADDirectorySetting | where -Property DisplayName -Value "Group.Unified" -EQ).id
$Setting["EnableMIPLabels"] = "True"
Set-AzureADDirectorySetting -Id $Setting.Id -DirectorySetting $Setting
EnableMIPLabels = true

Synchronize sensitivity labels to Azure AD

  1. Connect to Security & Compliance PowerShell using the Exchange Online PowerShell V2 module
  2. Run Connect-IPPSSession -UserPrincipalName
  3. Run the following cmdlet to use sensitivity labels in M365 groups,

Note: This is a one-time procedure.


Once enabled, you can configure protection settings for “Groups & sites” and “Files & emails” within a single sensitivity label.

Groups & sites not greyed out

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