MC1208688 - Microsoft Office for the web: Apply sensitivity labels with user-defined permissions

Updated March 19, 2026: We have updated the timeline. Thank you for your patience. 

Office for the web in Microsoft 365 now supports applying sensitivity labels with user-defined permissions. This enhancement provides organizations with greater flexibility and control over document access in Word, Excel, and PowerPoint for the web.

This feature will only be available in tenants that have enabled coauthoring on files encrypted with sensitivity labels: Enable co-authoring for files encrypted with sensitivity labels

This message is associated with Microsoft 365 Roadmap ID 468888.

General Availability

• Worldwide and GCC: We will begin rolling out in mid-FebruaryApril 2026 (previously mid-March) and expect to complete by early MarchMay 2026 (previously early April).
• GCCH and DoD: We will begin rolling out in mid-FebruaryApril 2026 (previously mid-March) and expect to complete by early AprilJune 2026 (previously early May).

• Who is affected: All users of Word, Excel, and PowerPoint for the web in Microsoft 365.
• What will happen:
  • Users can apply sensitivity labels with user-defined permissions in Office for the web.
  • The experience aligns with the modernized permissions dialog in Word, Excel, and PowerPoint for Windows.
  • No changes to existing admin policies; feature respects current configurations.

No action is required. The user interface for applying custom permissions is consistent with the modernized dialog in Office desktop apps.

Learn more: 

• Apply sensitivity labels to your files | Microsoft Support
• Let users assign permissions - Restrict access to content by using sensitivity labels to apply encryption | Microsoft Purview | Microsoft Learn
• Sensitivity label capabilities in Word, Excel, and PowerPoint - Minimum versions for sensitivity labels in Office apps | Microsoft Purview | Microsoft Learn

No compliance considerations identified. Review as appropriate for your organization.