(Updated) Microsoft Office for the web: Apply sensitivity labels with user-defined permissions

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summary: Microsoft 365 Office for the web will support applying sensitivity labels with user-defined permissions in Word, Excel, and PowerPoint starting mid-April 2026. This feature requires coauthoring on encrypted files, aligns with desktop app permissions, and respects existing admin policies. No user action is needed.

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.

When this will happen

General Availability

  • Worldwide and GCC: We will begin rolling out in mid-April 2026 (previously mid-March) and expect to complete by early May 2026 (previously early April).
  • GCCH and DoD: We will begin rolling out in mid-April 2026 (previously mid-March) and expect to complete by early June 2026 (previously early May).
How this affects your organization
  • 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.
What you can do to prepare

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

Learn more: 

Compliance considerations

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

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