We've had several cases of users deleting files and support unable to restore them. So, to avoid losing sensitive data, we've setup a retention policy in the M365 Compliance center. There aren't many resources that match the new layout in the admin center so I was unable to find a location for retained documents.

Based on this screenshot, where are deleted documents stored / archived if a user deletes them from their site? Is there an additional step of setting up labels or will this store deleted documents in a special recycle bin?enter image description here

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Please check the Preservation Hold library. It should be on the top-level site of the site collection. Most users can't view the Preservation Hold library because it's visible only to site collection administrators.

Details here: https://docs.microsoft.com/en-us/microsoft-365/compliance/retention-policies-sharepoint?view=o365-worldwide#how-retention-works-for-sharepoint-and-onedrive

  • It turns out we can't even delete site collections with Retention enabled. If we toggle it off temporarily, will the Preservation Hold Libraries be deleted? Commented Jan 22, 2021 at 20:45

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