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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