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Microsoft 365 offboarding

Transfer OneDrive ownership when an employee leaves

What actually happens to a departing employee's OneDrive and SharePoint files, how the manual transfer works, and where it quietly goes wrong — plus how Votra turns it into a verified operation with signed evidence.

What happens to OneDrive files when an employee leaves

Nothing is transferred automatically. When an account is deleted, Microsoft keeps the OneDrive content in a recycle bin for a limited window and then purges it — after which it is gone. So the transfer is not an optimisation; it is the only moment at which the data is reachable. Every item below has to be moved, or deliberately archived, before the account is removed.

  • Open a read-only window to the departing user's OneDrive from the Microsoft 365 admin center, before deletion.
  • Transfer or archive the files while that window is open.
  • Re-point SharePoint site and library ownership — a separate record from the OneDrive account itself.
  • Only then disable and delete the account.

The manual approach, and why it breaks

Most teams do this by hand or with a PowerShell script against the Graph API. The script approach is reasonable, and it is what this page is not going to hand you: the versions circulating online assume a clean tenant and a personal (non-business) OneDrive, and they fail quietly. There is no vendor page that will ship an untested script and call it reliable, so neither will we — but the failure modes are well understood:

  • Shared-with-others items are skipped or fail silently, and they are exactly the files most likely to matter.
  • SharePoint site ownership is a different control object from OneDrive and is usually left pointing at the departing user.
  • Files already owned by someone else never appear in the run at all, so the inventory is incomplete before it starts.
  • There is no record of what was skipped, so a partial transfer looks identical to a complete one.

How Votra does it instead

Votra discovers the complete inventory of what an employee owns in Microsoft 365 first, so items you did not know about are in scope before anything moves. Each item is then transferred individually, re-read against the provider to confirm the change actually landed, and recorded. Failures are surfaced per item with the option to retry — nothing disappears silently.

  • Discovery before transfer: OneDrive files and folders, SharePoint sites and libraries.
  • Per-item transfer with provider re-read verification, not a fire-and-forget API call.
  • Approval enforced before anything changes, with separation of duties.
  • A signed, tamper-evident export of every action for audit and SOC 2 evidence.
  • Metadata-only: file contents are never downloaded, cached, or analysed.

Common questions

What happens to a user's OneDrive files when their account is deleted?
Microsoft gives you a grace period rather than deleting data immediately. Once the account is fully deleted, the OneDrive content goes to a recycle bin that Microsoft purges after a further retention window, and it is unrecoverable after that. The practical rule is that you must transfer or archive the files before you delete the account — once deletion completes, there is no supported way back.
How do I transfer ownership of a SharePoint site?
In the Microsoft 365 admin center, open the SharePoint admin area, find the site, and use the "Change owners" setting to add the new primary owner. The important subtlety is that changing the primary owner does not automatically re-point every library, folder, or document that the departing person owned — those are separate ownership records and are the most commonly missed part of an offboarding.
Can you transfer OneDrive ownership?
Yes, but not as a single action. Ownership exists at several levels — the OneDrive account itself, individual folders, and individual files — and each one can point at a different person. Microsoft does provide a simplified file-transfer flow for departing employees that handles the bulk handover, but per-item transfers outside it still require the Graph API.
How can I access the OneDrive of a former employee?
Before the account is deleted, you can request access from a departing user's OneDrive through the Microsoft 365 admin center, which opens a read-only window to their files. That window closes when the account is deleted. If you need a durable record — for a legal hold, an audit, or for transferring the files properly — capture it before the account is removed.

Want the full walkthrough with commands and screenshots?

Our blog post walks through the exact admin-center steps, shows why the widely-copied Set-SPOUser snippet is the wrong tool here, and compares the free, scripted and automated options.

Read: how to transfer OneDrive ownership when an employee leaves

Run it on a real tenant

Start with one departing employee end to end — discovery, transfer, verification, signed export. No credit card required for the 7-day trial.