People who send an email message to an Office 365 user who set up an Out of Office notification don’t receive the notification. However, an Out of Office MailTip for the user is displayed in the mail clients of the senders.

This issue may occur if one of the following conditions is true:

  • A forwarding rule is set up for the user’s mailbox.
  • A global Exchange transport rule is created for this mailbox.

By design, a mailbox cannot have forwarding rules and an Out of Office notification active at the same time.

Do the following:

  1. Sign in to the Office 365 portal (https://portal.office.com) as an administrator.
  2. To open the Exchange admin center, click Admin, and then click Exchange.
  3. In the upper-right corner, click your name, and then select Open Another user.
  4. Click Organize Mail, and then click Inbox Rules.
  5. Click New (Plus sign icon: New rule), and then click Create a new rule for arriving messages.
  6. In the Name box, specify a name for the rule, and then click More options.
  7. Under When the Message Arrives, select Apply to all messages.
  8. Under Do the Following, point to Move, copy or delete, and then select Copy the Message to the Folder.
  9. Click Select Folder, and then select Inbox.
  10. Click Add Conditions.
  11. Under Forward the Messages to, select User whom you have to forward.
  12. Click Save.