Hi,@Anthony-123
Thanks for posting your question in the Microsoft Q&A forum.
When an employee leaves your organization (or goes on an extended leave of absence), you can remove their Microsoft 365 account. The employee's mailbox data is retained for 30 days after the account is removed. During this period, you can still recover the mailbox data by undeleting the account. After 30 days, the data is permanently removed.
But if a hold is applied to the mailbox prior to deleting the Microsoft 365 account, the mailbox will be converted into an inactive mailbox.
Since in-place retention is now defunct and litigation retention is an older technology, Microsoft 365 retention is recommended.
To create a retention policy you can refer to this link:https://learn.microsoft.com/en-us/purview/create-retention-policies?tabs=teams-retention
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