Check licence terms before sharing accounts: Licences are usually assigned to individuals, not shared across users.; Microsoft 365 requires a separate licence for each person using the service.; Sharing credentials is prohibited unless the product's terms explicitly allow it.
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Part of Business software installation and licences

Checking licence terms before sharing an account

Check who may use a software licence, whether credentials may be shared and which named-access options fit the work.

Desk Support · · 2 min read

Before two workers use one software login, locate the order, product terms and account policy for the exact product, plan and purchase. If unclear, ask the reseller which documents govern. Check who may use the entitlement, whether credentials may be shared, and whether the service offers named users or a collaboration feature.

Permission for one licensed person to install an app on several devices does not give several people permission to use that person’s account.

Identify what needs sharing

Ask whether staff need the software entitlement, files, an inbox or a task queue. They may need access to the same work while signing in separately. Record the proposed users, their tasks, product edition and seller.

Check the deciding terms

  1. Is access assigned to a person, device, organisation or concurrent-user pool?
  2. If installation on several devices is allowed, who may operate each installation?
  3. May another worker use the credentials, even within the same business?
  4. Does the plan offer named team members, delegation or another approved way to share the work?
  5. Can access be reassigned, and what happens to files associated with the former user?

Microsoft 365 business guidance says to create accounts for people in an organisation and assign a licence to each person. For specified products, it lists device installation allowances.

Software licensing compliance facts for Australian small businesses

Named user licensing common
Most business software in Australia requires individual user licences
Shared accounts risk non-compliance
Using one login for multiple employees may breach licence terms
Multi-factor authentication recommended
Essential for securing any shared or delegated access

Choose an allowed arrangement

If the proposed shared login is prohibited, arrange eligible accounts or ask the seller for a suitable plan. If staff need the same files or queue, use the service’s permitted sharing or delegation controls. Keep the decision and applicable terms with the software record.

Seek a written answer from the supplier or seller when the wording remains unclear, before sharing credentials.

A supplier may allow a shared account for a particular use. Where sharing is both allowed and necessary, keep a list of authorised users, use multi-factor authentication where available and change login details when access changes.

Allowed vs prohibited account sharing methods

Permitted approach
Assign individual licences to each user (e.g., Microsoft 365 business plans)
Prohibited approach
Sharing one login across multiple staff members without proper licensing
Alternative solution
Use collaboration tools like shared workspaces or delegated access within the service

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