Record retention label - Disable "Record Status" toggling feature
Based on Microsoft new feature release in Jan 2020, it allows user to toggle "Record status" to lock / unlock for a documents that are being applied with record retention labels. This feature is undesirable whereby it allows users with "members" rights to unlock and modify a record. We wish to have more control in terms of record handling and wish to disable this feature. Is there a way to hide this option from users and only allow site collection administrator to do so?

The ability to mark a document as a record and restrict actions that can be performed on the record is an essential goal for any records management solution. However, collaboration might also be needed for people to create subsequent versions. This action creates a record in the Records folder in the Preservation Hold library, where it resides for the remainder of its retention period.
While the document is unlocked, any user with standard edit permissions can edit the file. However, users can’t delete the file, because it’s still a record. When editing is complete, a user can then toggle the Record status from Unlocked to Locked, which prevents further edits while in this status.
https://docs.microsoft.com/en-us/microsoft-365/compliance/record-versioning?view=o365-worldwide
Alternatively, you can use the Regulatory Record Label which blocks versioning: https://docs.microsoft.com/en-us/microsoft-365/compliance/records-management?view=o365-worldwide#compare-restrictions-for-what-actions-are-allowed-or-blocked
3 comments
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Zeeshan Fakhar commented
The items in preservation hold library can be undeclared and delete by site collection admins. This can compromise the integrity of records. Please disable the unlock feature
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Roberto Yglesias commented
Eric - this feature already does retain the version of the record which was unlocked (unchanged) in the Preservation Hold Library under the "Records" folder.
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Eric Mullerbeck commented
However, if this feature (allowing locking/unlocking of records by users with member rights) is combined with keeping the *version* that was marked as a record *unchanged* -- i.e. it is still a version in the history and cannot be deleted, and is marked as a record -- then this feature is actually pretty cool as is.