After the user account is deleted, any Exchange Online license associated with the user account will be available to assign to a new user. If the mailbox needs to be accessed by authorized people who have been granted eDiscovery permissions for compliance or legal reasons, it must be assigned an Exchange Online Plan 2 license (or an Exchange Online Plan 1 license with an Exchange Online Archiving add-on license) so that a hold can be applied to the mailbox before it's deleted. For more information about holds, see Remove an In-Place Hold in Exchange Online. Before you remove a license you must remove all holds for the user. You can assign a license to another user if you don't delete it. If you don't want to pay for a license after someone leaves your organization, you need to remove their Microsoft 365 license and then delete it from your subscription.
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