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I am looking for options where I can restrict the deletion of files using retention lables on SharePoint Libraries defined at Compliance centre.

It seems like the default setting is that usres with Edit/Contribute permissions can change the retention label, what is the use of having retention labes if users can change it?

Any solutions to restrict people with Edit/Contribute permissions on SharePoint Library to change the retention label?

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As per my knowledge, it is by design in SharePoint Online and I'm afraid there is not such setting to restrict people from changing the retention label.

You can vote for this feedback: https://feedbackportal.microsoft.com/feedback/idea/ad500bb8-858e-ec11-a81b-000d3a058728. Microsoft will take the feedback into consideration if it is highly voted.

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