Big changes are coming to OneDrive this year – and if you’re not prepared, you could lose access to important data. Microsoft is updating its policies for unlicensed OneDrive accounts, with strict timelines for when access is removed and data is archived or deleted.

If your organization uses OneDrive, now’s the time to make sure your data is protected.

What’s Changing?

Starting in 2025, Microsoft will automatically move unlicensed OneDrive accounts to read-only mode, then archive or delete them, based on when the license was removed.

For accounts unlicensed before February 17, 2025:

• April 25, 2025: Account becomes read-only
• May 16, 2025: Account is archived

For accounts unlicensed after February 17, 2025:

• Day 60: Account becomes read-only
• Day 93: Account is either archived or deleted, depending on your data protection settings

Example: If a user’s license is removed on March 1, 2025:

• April 30 (Day 60): Account is read-only
• June 2 (Day 93): Account is archived or deleted

Learn more from Microsoft

What This Means for Your Organization

1. Potential Loss of Access
   Unlicensed accounts will lose edit access quickly – and data could be deleted if not backed up.
2. Admin Awareness Is Key
   Admins (or IT partners like WorkSmart) need to monitor OneDrive accounts and act early, especially during user offboarding.
3. Backups Matter More Than Ever
   If your business doesn’t use a third-party backup solution, OneDrive files may be permanently lost when accounts are decommissioned.

How to Prepare

1. Audit your OneDrive accounts now
   Identify unlicensed or inactive users and review who owns important data.
2. Backup before it’s too late
   Ensure critical OneDrive data is protected, especially if you don’t already have a third-party backup system.
3. Review offboarding processes
   During user offboarding, Microsoft still allows 30 days of access after a license is removed. Use that time to reassign ownership or move files to an active account.
4. Migrate important data early
   If a former employee’s OneDrive has files your team relies on, migrate those now to avoid disruptions.
5. Communicate internally
   Make sure your team knows about these changes, especially those who manage licenses or access data from past employees.

Don’t Assume It’s Handled

Accounts tied to former employees often fly under the radar – but may still contain important files. Without the right protections, this data could be gone for good.

If you’re unsure whether your organization is covered, WorkSmart can help you:

• Audit your Microsoft 365 environment
• Set up reliable data backups
• Update your offboarding and license management processes

Final Thoughts: Don’t Get Caught Off Guard

WorkSmart clients with Microsoft 365 backup in place likely have no action required – we’ll follow up directly if anything needs attention.

If you’re not using a third-party backup, now’s a great time to chat. Let’s make sure your data is protected before the deadlines hit.

Need help managing your Microsoft 365 environment?
Contact our team or schedule a free consultation with our Senior Business Advisor.